The energy sector in Peru will see a huge spike in investment for the period concerning 2014-2025, announced the president of Colombian firm Promigas, which began operations in Peru in the year 2006. The total investment for this period will be $41.25 million USD, on what can only be considered a sign of faith in the Peruvian fossil fuel market, as well as a resilience to leave it behind as a primary source of income.
The announcement was made within a Promigas’ press release titled ‘Natural gas in Peru: sectorial balance and new perspectives for the bicentennial’. Aquiles Mercado, the firm’s financial vice-president added that with these new investments “there is now a guarantee that there will be an important continuity in the energy sector, with over $41 billion dollars. That way, the country is projecting its future.”
The investments will flow mostly into the fossil fuel industry, but some will go into natural gas transport and petrochemicals.
The press release was also emphatic when saying that Peru has a “promising future” when it comes to promoting mass consumption of natural gas. “The decisions that are being taken are the correct ones, the existing reserves allow that this planning is adequately supported by a reserve level on par with the most developed countries.”
In LatAm, Peru is the country in which natural gas consumption has grown the fastest, in the last 10 years it grew 23%, way above Brazil which was second and grew 8%.
Mercado also commented on the way LatAm is adopting natural gas, and sang praise of Peru’s adequate response towards their reserves. “In many cases, Peru copied a lot of the legislation adopted by Colombia, and has now surpassed many industry standards.”
He highlighted that Argentina, who had developed a functioning market for natural gas, was now experiencing trouble. And that Venezuela was yet to capitalize on its astonishing 170 trillion cubed feet reserves.
“For us, this is without a doubt the moment in which Peru is the protagonist of expansion and development of natural gas.”
Peru might be able to become a regional powerhouse on the matter, it has the reserves and the legislation needed. But with countries like Chile, a big importer of natural gas, turning hard into renewables, the market may be actually shrinking. Still, big investment will surely take advantage of reserves that would otherwise go unused.