Peru liquefied natural gas (LNG) plant is located in a site called Pampa Melchorita on the Pacific coast near San Vicente de Cañete. The location is around 169km south of Lima, the capital of Peru.
The project is the first LNG processing plant in South America. Overall, it covers an area of around 50 hectares.
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The total estimated cost for the project totalled around $3.8bn, making it largest investment in one single project ever made in the country.
PERU LNG is operated by Hunt Oil.
The life span of the plant is estimated to be 30 years, but it can be significantly extended through regular operation and maintenance.
Peru LNG Development History
The feasibility studies for the project began in 2000, while early works such as earthmoving and civil engineering works at the site were initiated in 2005.
In 2006, PERU LNG secured approvals for four Environmental and Social Impact Assessments (ESIA). The final investment decision (FID) on the project and the first stone laying ceremony were also conducted in the same year.
Peru LNG was officially inaugurated in June 2010. In two years, it delivered the 100th shipment.
In September 2017, PERU LNG officially opened its LNG truck-loading facility to supply fuel to regasification stations in northern and southern Peru via trucks.
The facility loaded the 500th cargo in 2019.
In 2022, Peru LNG announced the implementation of the ShoreTension Vertical Unit mooring system.
In August 2023, PERU LNG signed a joint study agreement with Marubeni and Osaka Gas to start a pre-feasibility study to produce e-methane from green hydrogen and carbon dioxide recovered from the LNG facility.
At the time of opening in 2010, PERU LNG consortium comprised Hunt Oil Company of the US (50%); SK Energy of South Korea (20%); Repsol of Spain (20%); and Marubeni Corporation of Japan (10%).
Shell acquired Repsol’s stake in 2013 as part of a larger deal.
In April 2024, MidOcean Energy acquired SK Earthon 20% interest in the Peru LNG project.
During the construction phase, Peru LNG created more than 20 thousand jobs and contributed around 2% to GDP growth.
Peru LNG Project Infrastructure
Key infrastructure of the project includes a 408km-long pipeline, a cryogenic processing plant with two storage tanks, a 1.4 km-long marine terminal and a truck loading facility with a capacity of up to 19.2 mmcf/d.
The single train natural gas liquefaction plant has a processing capacity of 4.45 million metric tonnes per annum (mmtpa) processing capacity, while the two storage tanks can hold 130,000 cubic metres each.
The 408km-long pipeline, with a 34-inch diameter, has the capacity to transport 1,290 million cubic feet per day (mmcf/d). It is buried to a depth of up to 2m, depending on the location geography. It receives high-pressure natural gas from the Malvinas Gas Separation Plant.
The terminal can receive tankers with a capacity ranging from 90,000 to 173,000m3. It features a berth for cargo ships, a 300m wide dredged navigation channel and an 800m long breakwater to enable safe loading of LNG onto carriers.
The project site also has space allocated for a potential expansion by adding a second train.
Operations
Peru LNG liquefies natural gas received from Camisea Project, which comprises Blocks 56 and 88, a separation facility in the Amazon rainforest, and pipelines from the blocks to the Camisea fractionation plant on the coast at Pisco and to Lima.
Natural gas for the liquefaction plant is transported through the existing Camisea-Lima Pipeline Transportation System (PTS).
The facility’s liquefaction train leverages the propane pre-cooled multi-component refrigerant liquefaction technology.
It features a Feed gas Receiving Unit (FRU) that separates and stores any liquids in the natural gas supply pipeline following initial hydrostatic testing operations.
The natural gas then proceeds to the Acid Gas Removal Unit where carbon dioxide is removed.
The Dehydration Unit removes water from the natural gas and dries it using a three-bed molecular sieve configuration. An Activated Carbon Adsorber is added to remove any heavy metals present in the feed gas.
The feed gas is liquefied using two types of refrigeration cycles. It is first pre-cooled using propane refrigerant at four different descending pressure and temperature levels.
Subsequently, it enters the main cryogenic heat exchanger (MCHE), where it is further cooled and fully condensed by the mixed refrigerant.
Finally, LNG enters the storage tanks at 1.08 bar pressure and at a temperature minus 163.1°C.
Financing
The project received financing of $2.25bn from international entities and the local Peruvian entities.
The international financing for the Peru LNG was received from banks including the Inter-American Development Bank (IADB), the International Finance Corporation (IFC) of the World Bank, the Export-Import Bank of the United States, the Export-Import Bank of Korea, the Italian Credit Export Credit Agency (SACE), Societe Generale, BBVA, Credit Agricole-CIB, Sumitomo, ING, Mizuho, and the Bank of Tokyo-Mitsubishi.
Additionally, Peru LNG placed $200m in bonds in the local market and shareholders made a capital contribution of $1.6bn.
Contractors Involved
The Peru LNG’s 408km pipeline construction contract was awarded to Techint in October 2007, while CDB consortium (Odebrecht, Saipem and Jan de Nul) was responsible for building the marine terminal.
Chicago Bridge & Iron Company won the engineering, procurement, and construction (EPC) contract for the $1.5bn natural gas liquefaction plant in January 2007.
Several Peruvian subcontractors were also associated with the project including Graña y Montero, Cosapi, Translei, Minera San Martín, Cosmos, Aceros Arequipa, Técnicas Metálicas, Esmetal, and Sima.
R&M’s Projects Division along with joint venture partner Wholesale Electric were awarded supply contracts for instruments and electrical bulks including cables, cable glands, earthing materials, transit frames, lighting, lighting columns, plugs sockets and junction boxes.
The liquefaction process at the Peru LNG facility is based on Air Products Split MR, a propane pre-cooled mixed-component refrigerant process.
