Living in Peru : your everyday companion

The head of state, Alan García, started today a working visit to the departments of Cusco and Arequipa to inspect the route along which Peru’s South Natural Gas Pipeline “Gasoducto del Sur” will be built.

Accompanied by Premier Jorge Del Castillo, the president arrived this morning to Arequipa to fulfill a working day.

Previously, at 8:40 hours (13:40 GMT), both visited the city of Cusco.

Last Friday, the government announced it had granted the Concession Contract for the Natural Gas Transportation Pipelines to Peruvian company Kuntur Transportadora de Gas, benefiting people from the south of the country.

On a supreme resolution published on September 10th, the Ministry of Energy and Mines (MEM) granted the concession of the project, running from the initial point of the transport system in Las Malvinas area, in the province of La Convention, Cusco; to the cities of Juliaca, Matarani and Ilo.

The concession also includes delivering points to the transportation or distribution systems of the natural gas through a pipeline network to the cities of Quillabamba, Cusco, Puno, Arequipa, Moquegua and Tacna.

The South Gas Pipeline, 1,085 kilometers long with a 26-inch diameter, has an estimated cost of 1.33 billion dollars. To ensure its execution, Kuntur has presented a 66 million dollar bank guarantee, equivalent to 5% of the cost of the construction work.

The pipeline will start operating in 2012, carrying 145 million cubic feet of gas to reach over 800 million cubic feet in 2025.

News source: ANDINA