Peru Advances $2 Billion, 572-Mile Southern Gas Pipeline Project
By Mauro Nogarin, Correspondent, South America
(P&GJ) – The Southern Extension gas pipeline project is an infrastructure project that will be led by the Peruvian company Transportadora de Gas del Perú (TGP).
Its main objective is to provide natural gas to the southern part of the country, benefiting regions such as Arequipa, Moquegua, Cusco and Puno, which still lack an adequate pipeline to meet demand for residential and industrial use. The project represents a big step in government’s move toward the the national energy transition program.
The $2 billion gas pipeline will span 572 miles (920 km) and connect the city of Humay in the Ica region, the city of Ilo (Moquegua), passing through Mollendo, and finally branch off to reach the city of Arequipa.
This pipeline will have an initial capacity of 300 MMscf/d, with the possibility of increasing it based on future demand. This volume is sufficient to also feed the Molledo and Arequipa thermoelectric plants.
The financial aspects of building this new gas pipeline are being prepared by the Agencia Nacional Pro (Inversión National Investment Agency) and the Ministry of Energy and Mines. It includes a 10-year extension of the current concession contract, extending it from 2033 to 2043. This extension will allow TGP to recover its investment with the revenue generated from natural gas transportation.
The national government has requested that Cusco and Puno be included in the project to expand natural gas distribution and improve the energy competitiveness of these regions.
Length: 572 miles (920 km)
Capacity: 300 MMscf/d
Design pressure: 1,450 PSI
Investment: $ 2 billion
Source: Transportadora de Gas del Perú (TGP).
According to information from TGP, the execution of this important project will be divided into two phases: construction and operation. The former will generate approximately 20,000 jobs, while the latter will maintain at least 400 permanent jobs each year.
This pipeline will not only boost the development of the national petrochemical industry and thermal power generation in the south by allowing the incorporation of 1,500 MW of thermal generation into the national electricity system, but will also enable significant energy cost savings for households (39%), transportation (57%) and industry (56%), respectively.
The proposal is currently under review for approval by the Ministries of Energy and Mines, Economy and Finance, ProInversión and Osinergmin.
From a geological perspective, the analysis conducted using satellite imagery and the field geotechnical study showed that 49% of the pipeline route runs through the pampas near the Pacific Coast.
This area is characterized by a low-lying plain with an arid landscape that is interrupted by a few rivers originating from the Andes, forming valleys. The remaining 42% corresponds to the mountainous area, characterized by a range extending into the coastal area, forming cliffs with a 9% gradient and a combination of pampas and mountains toward the end of the route.
The main axis of the new pipeline will be a configured as running from the town of Humay to Km 690; it will head south, then turn slightly south from km 690 to km 818, where it will connect to the City Gate in the city of Illo.
In addition, the system will include two secondary branches: one 90-km long, reaching the City Gate in the city of Arequipa, and another 16-km long, reaching the City Gate in Moliendo.
The 508-mile (818-km) Humay-llo main pipeline will consist of a 24-inch, with two smaller two branches of smaller diameters, ranging from 12-inches to 18-inches.
The compressor plant, to be installed at Km 410, will have a capacity of 7,000 hp.
According to information from the Peruvian Ministry of Mines and Energy, the pipeline will have 17 valves in the 24-inch section, three valves in the 18-inch section, and two valves in the 12-inch pipeline.
The pipeline’s operating pressure is 1,450 psig at the delivery points in Humay, Arequipa, Mollendo and Ilo.
In addition to the construction of two operating bases, the pipeline will have two branch stations serving the secondary branches of Arequipa and Moliendo.
The pipeline is designed in accordance with current ASME standards in the country. The 24-inch,18-inch,14-inch and 12-inch pipes used will be manufactured in accordance with API 5L API 5L X70.
Regarding corrosion protection systems, the various piping systems and subsystems will use the following protection standards:
- The pipeline used for the construction of the main gas pipeline will have beveled ends and a three-layer polyethylene outer coating in accordance with the CAN/CSA standard.
- Upon completion of this infrastructure, the pipeline and the station piping will be pressure tested before beginning operation in accordance with ANSI/ASME standards.
At the end of the test, the Osinergmin supervisor will confirm approval for the start of operation.