Vision/Mission
Vision
To be world-class producers of LNG in the spheres of operational efficiency, environmental and social performance, and industry safety.
Mission
To be the most efficient world-class LNG producer that provides a workplace free from accidents and environmental incidents; one that acts as a responsible investor contributing to the local community, and is supported by the most talented workforce and employs best practices to achieve continual operational improvements whilst maximizing value for its shareholders.
Business Description
The Peru LNG project is the largest investment in the country in recent years. It consists of a gas pipeline extending 408 kilometers from Chiquintirca in Ayacucho, passing through Huancavelica, Ica and Lima, reaching kilometer 163 of the Panamericana Sur Highway, where the natural gas liquefaction plant is located.
Peru LNG is a world-class company with infrastructure that positions Peru as a leader of the LNG industry in South America.
Peru LNG is committed to positively contributing in the long term to the economic and social fabric of the country and the communities where it operates. This commitment involves complying with stringent environmental and safety standards, implementing ethical behavior in the performance of operations, honoring local customs, and complying with local laws. In addition, the company implements social responsibility programs that help create sustainable growth opportunities and environmental programs that help preserve the country’s natural resources.
Background
Peru LNG was created on March 24, 2003, to develop, build and operate a liquefied natural gas (LNG) plant. In addition to the plant and related installations, the company’s infrastructure includes port installations for shipping LNG in special vessels and a gas pipeline. The life of the company is indefinite, in accordance with Peru’s Companies Act and other applicable legislation. Its Melchorita liquefaction plant is the first of its kind in South America.
Its majority shareholder and operator is Hunt Oil Company, a company headquartered in Texas, United States, and one of the world’s largest independent oil and natural gas companies. Its partners are SK Innovation of South Korea, Shell of the Netherlands, and Marubeni of Japan.
Products/Services
The installed capacity of the plant is 4.45 million tons a year (MMtpy). This production covers the 4.2 MMtpy of LNG established in the agreement. During the industrial process, the plant receives dry natural gas from Camisea’s Block 56, and the liquids it contains are removed. The natural gas is measured and its pressure controlled. Carbon dioxide (CO2) is then removed in the acid gas removal unit. From this stage onwards, the gas is dried using molecular sieves and activated charcoal before being liquefied. The natural gas is then cooled with propane refrigerant and condensed into a liquid in the principal cryogenic heat exchanger. On completion of this process, the LNG is stored in tanks, each having a capacity of 130,000 cubic meters (m3) before being shipped out in methane tankers.
Industry
The first natural gas liquefaction plant built in South America, and the only one in Peru.
Peru LNG continues to position itself as an example of high operating standards in an industry without precedent in the region.
Location
Peru LNG’s liquefaction plant is the first of its type in South America. It is located between the towns of San Vicente de Cañete and Chincha, approximately 160 kilometers south of Lima. It is built on 521 hectares of land between the Southern Pan-American Highway to the east and the Pacific Ocean to the west.
The site was chosen after careful study. Certain specific characteristics were required, such as low environmental sensitivity, low population density, soil stability, and stable oceanic conditions, among others. The chosen location meets these requirements. Nevertheless, its altitude at 135 meters above sea level meant that roads had to be built to the coast.
The Peru LNG gas pipeline is without a doubt one of the most complex engineering feats carried out in Peru. It is 408 kilometers long and crosses some of the most arduous terrain in the world, crossing numerous rivers and Peru’s coastal desert. This 34-inch diameter, high-pressure gas pipeline can carry 1,121 million cubic feet per day (MMcfd) of dry natural gas.
The pipeline starts in the community of Chiquintirca, in the Ayacucho Region. It ends at Peru LNG’s liquefaction plant on the Peruvian coast.
The port facility located at the plant consists of an 800-meter-long breakwater located at a depth of 16 meters, a 1,400-meter-long jetty to carry the LNG loading equipment, four sets of mooring bitts, six docks suitable for vessels from 90,000 m3 to 173,000 m3 and a one-way entrance channel, together with a tug jetty and other facilities necessary for the LNG loading process.
Competitive Advantages
The company has created the first natural gas liquefaction plant built in South America.
Moreover, the access to export markets for natural gas incentivizes future exploration and has contributed to the successful promotion of increased hydrocarbons exploration in Peru.
Company Goals & Objectives
The goal is to maintain and improve the high expectations that the company already holds in its operations and in its social and environmental management.
Its concern for the operation of the sole plant of its type in South America commits the company to high standards in social, occupational health and environmental matters.
Peru LNG is proud to continue meeting the challenge of improving operations in a company that has undertaken an unprecedented venture in Peru, while fostering the country’s energy development.
Management
Igor Salazar is an industrial engineer who graduated from the University of Lima, Peru, and obtained a Master’s degree in energy economics from the University of Oklahoma in the USA. He started his professional career with Petroperú and Repsol, where he worked in the refining section (planning, marketing and operations). He then worked in the downstream sector with Texas Petroleum Company (Texaco). Thereafter he joined Endesa Internacional in Chile, where he worked in gas/energy trading and the development of new businesses in Latin America (principally Brazil, Argentina, Peru, Colombia and Chile). In January 2002, he joined Hunt Oil Company to work on the Camisea project and the Peru LNG project as Commercial Manager. Prior to being Commercial Director he was also a part of the engineering group that launched the project in 2002.
On January 1, 2011, he was appointed General Manager of the company.
Employees
In Peru LNG’s business it is essential to have highly trained professionals who are motivated and committed to the company’s goals.
Together with its operating company, Hunt LNG, it provides around 400 jobs.
Highlights
Other Notes
Social responsibility action by Peru LNG has helped build confidence and respect among the population. These social initiatives in the field of sustainable development aim to improve the quality of life of people living in the company’s direct area of influence in the areas of Ayacucho, Huancavelica, Ica and Lima.
As far as the environment and protection of natural resources are concerned, Peru LNG operates to the highest industry standards in order to guarantee strict compliance with Peruvian and international legislation.
