Peru flags gas to urea project

Friday, August 19, 2016

Peru environmental authorities requested additional information regarding a urea plant planned for northern Piura region.

Junior operator Olympic is behind the project, which would use natural gas from the company's block XIII-A.

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In a technical opinion to the energy and mines ministry's energy environmental affairs department (DGAAE), energy and mining investment regulator Osinergmin pointed to missing information in the contingency plan and risk study.

Preliminary information pegs the plant's cost at US$45mn and capacity to produce 200t/d urea.

Block XIII, which covers 263,358ha, produced 11.2Mf3/d gas in July, according to data from hydrocarbons licensing authority Perupetro.

President Pedro Pablo Kuczynski's government plan calls for promoting development of the country's petrochemicals sector.

In recent weeks, DGAAE requested additional information for Olympic's US$700mn-plus drilling project on the acreage.