Peru lowers hydrocarbons growth guidance, ups power outlook

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Wednesday, March 23, 2016

The expectation that international crude prices will continue at low levels will impact hydrocarbons sector growth in Peru.

That is the outlook in the latest inflation report from the country's central bank (BCRP), which lowered its 2016 hydrocarbons sector growth estimate to 1% from 8.1%.

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BCRP also took into account the rupture of the Camisea liquids pipeline that halted the transport of NGLs for 13 days, and the suspension of block 192 operations because of ruptures in the Nor Peruano oil pipeline in the first months of the year.

The bank kept its 4.6% hydrocarbons sector growth forecast for 2017.

Planned private hydrocarbons investment in Peru is US$3.87bn for 2016-17, highlights the report.

Principal hydrocarbon investments are the Sur Peruano pipeline, blocks Z-38, 56, 57, 88, III and IV, and natural gas expansion in Lima and Callao.

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POWER

In the power sector, BCRP raised its 2016 growth estimate – which includes water – to 7.6% from 6% because of growing electricity use amid GDP recovery, and maintained its 5% estimate for next year.

Planned private sector investment for 2016-17 is US$3.14bn and includes hydroelectric plants Acco Pucará, Belo Horizonte, Cerro del Águila, Curibamba and Molloco, thermopower complex Nodo Energético del Sur, wind farm Samaca and transmission lines Mantaro-Marcona-Socabaya-Montalvo and Moyobamba-Iquitos

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