Peru’s dependence on Bolivia gas becomes permanent

RIO DE JANEIRO, BRAZIL – The agreements signed with Bolivia concern the commercialization of liquefied natural gas in southern Peru, “energy integration” through the interconnection of gas pipelines, and the construction and operation of gas distribution networks in cities.

There are also agreements for the commercialization of Bolivian urea in the Peruvian agricultural market.

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In gas, the future interconnection of gas pipelines was highlighted to facilitate the massification of gas in both countries and allow the export of Bolivian gas through the port of Ilo in southern Peru. The supply of natural gas to border cities and liquefied natural gas to southern Peru will be facilitated in the short term.

Given the indefinite delay and enormous cost of the frustrating southern Peruvian gas pipeline – which has not even been put out to tender – southern Peru’s dependence on Bolivian gas is known to be becoming a permanent fact of life.

INSTRUMENTS SIGNED BY PERU

In this context, the following instruments were signed:

• An inter-institutional cooperation agreement between the Ministry of Hydrocarbons and Energy of the Plurinational State of Bolivia and the Ministry of Energy and Mines of the Republic of Peru for the commercialization of liquefied natural gas in Peruvian cities;
• An inter-institutional cooperation agreement between the Ministry of Hydrocarbons of the Plurinational State of Bolivia and the Ministry of Energy and Mines of the Republic of Peru for energy integration through the interconnection of gas pipelines;
• An inter-institutional cooperation agreement between the Ministry of Hydrocarbons and Energy of the Plurinational State of Bolivia and the Ministry of Energy and Mines of the Republic of Peru for the construction and operation of natural gas distribution networks in border cities and other areas of the Republic of Peru;
• An inter-institutional cooperation agreement between the Ministry of Hydrocarbons and Energy of the Plurinational State of Bolivia and the Ministry of Agricultural Development and Irrigation of the Republic of Peru promotes the commercialization of urea.

It was also agreed to promote the transit of Bolivian export cargo through the Pacific port city of Ilo in southern Peru and to open a border crossing on the Amazon River to Ilo.