Transportadora de Gas del Peru SA &
Peru LNG, S. R. L.
The giant Camisea gas field was discovered in the 1980s, but exploitation of its reserves had to wait many years until demand increased in Peru and for the advent and development of spot markets supporting worldwide trading and delivery of natural gas, LNG and NGLs. In 2002, Hunt Oil, a company with whom Gulf has enjoyed a long and successful relationship, engaged Gulf as Owner's Engineer to support Hunt, and a consortium of international energy companies, among them Respol (Spain), Sonatrach (Algeria) and SK (South Korea), to develop the Camisea field and deliver its gas and liquids to industries in Lima and for export to international markets.
The consortium formed Transportadora de Gas del Peru SA (TGP) to own and operate the multi-billion dollar Camisea Transportation System. Techint, the largest engineering and construction contractor in South America, also holds an interest in TGP, and constructed the Transportation System under an EPC contracting approach.
The Camisea Natural Gas and NGL Transportation System features two parallel export pipelines, one for natural gas, the other for liquids, which begin in the Peruvian rainforest, cross the Andes Mountains and traverse the coastal plain of Peru. The liquids pipeline terminates on the coast south of Lima, while the gas pipeline continues along the coast to the industrial suburbs of Lima. Together, the two pipelines measure some 1,290 kilometers and vary in diameters from 26-inches to 8-inches. The system includes multiple pump, compressor and pressure reducing stations, metering facilities and control and communication networks.
As the Owner's Engineer, Gulf developed procedures and specifications for, among other things, project execution, quality assurance and construction management and developed management information reporting requirements for the project. A team of Gulf engineers resident in Techint's offices in Buenos Aires, Argentina, reviewed and approved the engineering deliverables prepared by the EPC contractor. With the start of construction, Gulf mobilized a construction management team of expatriates and South American personnel, 75 personnel all together, to perform contractual compliance inspections of the construction activities, and to monitor and report on the performance of the EPC contractor and the progress of the construction effort. With the project crossing environmentally sensitive areas, rainforest, mountain and desert, and each demanding specific mitigation measures to minimize damage, Gulf's construction management team were especially vigilant to ensure the contractor used appropriate construction methods and a careful approach in accordance with the project environmental protection plan.
Shortly after completing the Camisea Natural Gas and Natural Gas Liquids (NGL) Transportation Project, Gulf was awarded the Peru LNG Project, a world-class engineering project and one of the most important resources of Peru's future energy strategy. Many of the same consortium members were involved in this project, including U.S. based Hunt Oil Company as the majority partner and principal operator, SK Corporation of Korea, Repsol YPF of Spain and Marubeni Corporation of Japan.
Gulf's proven experience in designing natural gas transportation facilities in the remote, mountain terrains of Peru was a key factor in being selected for the Project, as many of the same project team members were set to conquer yet another engineering feat through the Andes. The Peru LNG pipeline system approximates the general routing of the existing TGP Pipeline though it deviates significantly in a few areas to avoid a very rugged descent from a mountainous ridge,the narrow and sensitive Pisco River valley and the six crossings of the Pisco River.
The Peru LNG Project consists of a gas supply pipeline connecting to the existing Camisea - Transportada de Gas Del Peru S.A. (TGP) pipeline. This 408 kilometer, 34-inch natural gas pipeline stretches from Chiquintirca in the Andes Mountains, east of Ayacuchoto an LNG Plant at Pampa Melchorita, located in the coastal area. The pipeline transports natural gas resources in excess of domestic demand from the Camisea base gas fields to the southern coastal region of Peru for export at the LNG Plant.
Familiar issues, similar to the challenges Gulf faced on the Camisea Project included terrain conditions, landslides,altitude considerations, government regulations, and challenging environmental and ecological conditions. Gulf gave special consideration and applied lessons learned when evaluating and executing these challenging project aspects.