CONSTRUCTION OF THE "GASODUCTO ANDINO DEL SUR" (SOUTH ANDEAN PIPELINE) WILL COMMENCE IN 2010, AFFIRMS KUNTUR TRANSPORTADORA DE GAS.
The company Kuntur Transportadora de Gas continues with the development of the Gasoducto Andino del Sur (South Andean Pipeline) and expects to begin construction next year, according to Kuntur President Samuel Gomez.
The confirmation was made after a working meeting with President Alan Garcia, during which Gomez also announced that the company has selected as global financial advisors two internationally renowned banks, Goldman Sachs and Sumitomo Mitsui Banking Corporation.
Gomez stated that both investment banks will help with the financial structuring of the project, whose total cost is estimated at $1.5 billion. The company expects to obtain long-term debt financing for 50% of the project cost.
The project is currently in development stage with environmental impact studies in process, allowing for commencement of construction next year, according to Gomez.
Additionally, he indicated that the completed feasibility studies have identified the required property easements. This information was presented to the Ministry of Energy and Mines, complying with the first milestone under the concession contract with the government three weeks before the deadline.
The expected route of the pipeline will start at the Camisea gas fields in Cusco, and then proceed south through the cities of Puno, Arequipa, Matarani, and Ilo, and possibly further on to Tacna.
The company projects that the gas will be available to customers in 2012 or 2013, at the completion of the project, said Gomez. Nevertheless, he indicated there may be partial supply of gas available in some cities before 2012.
Lima, April 30 2009
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