A lack of security following rebel incursions in the Amazon rainforest near the Camisea pipeline has paralyzed key expansion work on the line, a company source said Thursday.
The Camisea pipeline moves gas for both domestic consumption and for LNG exports. It also transports NGL to Pisco, mainly for export.
"We have not been able to proceed [with the expansion work] due to a change in the project... due to the serious conditions of lack of security in the area," the company source confirmed in a telephone interview.
A spokesman for the project did not respond to requests for comment on the situation.
TGP, the Techint-led company operating the pipeline, has seen the security situation deteriorate in the area following two incidents in recent months. In mid-April 36 workers were kidnapped for nearly a week by a group that identified itself as Shining Path rebels. The hostages were eventually freed. Then on June 16, at a point in the Amazon about 82 miles from the Camisea field, another group of rebels briefly retained 10 workers, and issued a warning to company officials against the presence of military forces in the area.
Camisea produces over 1 Bcf/d of gas. According to Energy and Mines Ministry information from 2011, the expansion project is valued at around $589 million, and is aimed at expanding gas throughput capacity of the 456-mile-long pipeline to up to 1.2 Bcf/d from 530,000 Mcf/d, and raising liquids throughput to 120,000 b/d from 88,000 b/d.
