Peru hydrocarbons transporter highlights security situation

Thursday, May 2, 2013

Peru hydrocarbons transporter TGP, which moves Camisea natural gas and NGLs, reported that advancement of a project to expand pipeline transport capacity has been principally impacted by security issues in Kiteni.

The government initially declared a state of emergency in the area in April 2012 followed by acceptance from the energy and mines ministry of a company force majeure request, according to TGP's first quarter MD&A.

The expansion is comprised of Loop Sur, a 55km stretch that will run parallel to existing infrastructure and a 54,000hp compression plant at kilometer 127.

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TGP transported 12.2Mm3/d in 1Q13, down 3.7% sequentially and an 8% drop from the year-ago quarter. Gas shipments to power generators slid 12.5% year-on-year.

The company adds that deliveries to regulated clients - through distributor Gas Natural de Lima y Callao (Cálidda) - fell 0.9% and rose 4.1% to large industrial users, sequentially. In 1Q13, Ica distributor Contugas consumed 0.83Mm3/d and an average 17.6Mm3/d were delivered to Perú LNG.

TGP posted a US$39.1mn net profit this January-March compared to US$33.1mn in the year-ago period and revenue rose 9.59% to US$123mn.