It is reported that the government’s decision was based on a law that regional leaders in southern Peru have been pushing the government to abide by. The law reportedly states that gas pipelines are required to be built in the mountains.
There is a law that says it’s a public necessity to build the pipeline in the Andes, and the law is the law. The other project has been presented to the government, but obviously the government needs to give priority to the law, prime minister Jorge del Castillo was quoted by Reuters as saying.
Suez Energy had reportedly told the government that it was willing to invest around $800 million to construct the pipeline from Peru’s Camisea field. However, it is claimed that Kuntur Transportadora de Gas’s pipeline is likely to be more expensive.
Industry analysts have said that the government should approve only one pipeline because there was not much demand to support two.
