GDF Suez said that the utility’s Enersur unit, which produces 1,000MW at gas, diesel, coal and hydroelectric plants in Peru, may expand its 545MW Chilca gas-fired power plant south of Lima and build a 114MW hydroelectric plant in the northern Andes. Lima-based Enersur has recently inaugurated a third, $80m turbine at the Chilca plant.

Patrick Eeckelers, general manager of Enersur, told Bloomberg: “There’s an opportunity to expand as there’s a huge gap to be filled. With current market rates and the drop in equipment prices, it’ll be a good match.”

As reported, Enersur is likely to tap local capital markets to finance its power projects and, if a pipeline is built on the south coast, the company may also plan to convert its diesel-fired Ilo plants to natural gas.

Mr Eeckelers added: “In the coming years the company will need more gas. Supply is tight, but the problem can be overcome.”