A map of the 1,000km South Peru Gas Pipeline

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Odebrecht to run $4bn gas pipeline across the Andes

22 July 2014 | By Joe Quirke | 0 Comments

Brazilian contractor Odebrecht has announced that it plans to build a natural gas pipeline across the Peruvian Andes by 2017, more than a year ahead of the original schedule.

The 1,000km line will begin in the Camisea field in the jungles of south-eastern Peru, which produces almost all the country’s natural gas. It will then cross the Andes and terminate in the southern coastal city of Moquegua. 

Its construction was a campaign promise of president Ollanta Humala, who said his administration would bring natural gas to the south of the country.

Odebrecht is part of the Gasoducto Sur Peruano consortium with Enagás, a Spanish grid operator that owns a 25% stake in the contract. Gasoducto has been granted a 34-year concession to operate the line. 

The construction cost of the project is expected to be between $3.6bn and $4bn, with total costs eventually reaching $7bn. Odebrecht and Enagás are in talks with banks concerning financing.

Jorge Barata, a director of Odebrecht Latinvest, said: “The whole project will likely be finished in December of 2017, which is 14 months ahead of schedule.”

The pipeline is capable of transporting up to 1.6 billion cubic feet of gas a year.

Odebrecht had previously planned a pipeline to the south of Peru, which was unfinished, so some of the surveying work for the present job was already done.

It was announced this week that Norberto Odebrecht, who founded the company that bears his name, has died aged 93. Last year, it was the 18th biggest contractor in the world, with a turnover of $14.9bn.

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