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Peru LNG is Latin America's first liquefied natural gas (LNG) export project. It was developed by a consortium of Hunt Oil Co. (50%), SK Energy (20%), Repsol YPF (20%) and Marubeni Corp. (10%). The PERU LNG project includes a liquefaction plant, marine export facilities with an island breakwater, and a 408-km pipeline that connects to an existing pipeline in the Ayacucho mountains. Hunt Oil Co. is the operator of the PERU LNG liquefaction plant and LNG loading terminal, and Stream--a joint venture of Repsol YPF and Gas Natural--has exclusive rights to market the 4.5 million metric tons (metric MMt) of LNG produced each year.
Total investment for the project was US$3.8 billion (B). Included in this amount were the liquefaction plant ($1.5 B), which was awarded as a lump-sum turnkey EPC contract; marine and pipeline facilities; and development and financing costs. Of the $3.8 B investment, over $1 B was targeted for investment within Peru for goods and services in the Pampa Melchorita region. The project is expected to boost Peru's GDP by an average of 0.5%/yr and generate approximately $1.3 B of hard currency export revenues annually, while increasing the country's exports by an estimated 4.2%. 1
Safety focus
Safety was a core value for all who worked on the project. All onsite activities were executed in a manner to ensure the health and safety of every person working on the project.
The commitment to safety is clearly demonstrated by the safety record of the PERU LNG project. Over the duration of the project, the main contractor and subcontractors expended more than 29 million work-hours with a recordable incident rate of 0.10 and a lost-time incident rate of 0.01.
Site selection
The selection of a suitable site for the location of the LNG facility was one of the first steps in the planning phase. Typical site selection criteria were evaluated: Environmental sensitivity, e.g. protected flora and fauna, and sensitive ecosystems Potential social impact and proximity to populated areas Marine suitability--i.e., sea conditions, such as currents, wave heights, and water depth sufficiency for LNG carrier berthing and loading operations Initial dredging and maintenance dredging requirements Land availability for facility (and potential future expansion) Soil conditions Proximity to labor and raw materials Logistics of transporting...