Peruvian state oil refiner Petroperu has signed separate agreements with Brazi's Braskem to develop a petrochemical industry in Peru and with Spain's Repsol for a joint venture to distribute gas in Peru's mountainous south.
In the deal with Braskem, Petroperu and the chemicals producer signed a letter of intention aimed at looking at the potential for polyetilene and ethylene plants in southern Peru, according to a filing Tuesday with the Lima stock exchange. Both will also study building an ethane pipeline.
In the second agreement, Petroperu and Repsol formalized their intention to seek and put to work the most efficient system for distributing LNG to small cities spread out across the mountainous south Peru.
The actions come after new Petroperu chief executive Humberto Campodonico weeks ago said the company would diversifying beyond refining.
Peruvian President Ollanta Humala was elected earlier this year in large part by promising to lower fuel costs in southern Peru by making existing Camisea Block gas available to more areas. Currently that gas is mainly distributed just in central Peru.
Peru has said gas from the Camisea fields will be used to source gas to distribute in the south. But negotiations to secure enough volume are still pending with the US' Hunt Oil and Argentina's Pluspetrol, the leaders of the consortium that holds the concession over the Camisea fields.
