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Peru could face energy shortages over Camisea suspension

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Peru’s government has warned the country could face energy shortages in the next couple of years.

On Wednesday deputy energy minister Luis Ortiga said there could be an energy shortage by 2014, due to the >suspension of the Camisea pipeline expansion project, after terrorist attacks in the area, Peru21 reported.

The Camisea expansion, Ortiga said, was projected to add 100 million cubic feet of natural gas per day, Peru21 reported.

“[For now] it’s not going to happen, which will reduce energy reserves for 2014,” Ortiga was quoted as saying.

Furthermore, authorities have warned that the Camisea delay would also affect production at two electrical plants in Chilca, which were relying on the additional natural gas supply.

Cesar Butron, head of the country’s national grid system, said energy reserves would decrease to about 6 to 8 percent in 2014, down from the predicted 14 percent.

“This does not mean there will be rationing, but there will be some contingency outages,” Butron said to Peru21.

Transportadora de Gas del Perú (TGP) announced the Camisea stoppage earlier this week, citing security problems concerning Shining Path remnants.

“We have a project which is suspended due to this emergency security problem,” TGP said, according to Peru21.

Oritga said TGP would have to renegotiate with Cusco’s regional government, to find a way to continue with the expansion project.

 

Deputy energy minister Luis Ortiga said there could be an energy shortage by 2014, due to work stoppage the Camisea pipeline expansion project, after terrorist attacks in the jungle,

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