Peru natural gas production hit by leak

8/21/2019

Argentine energy company Pluspetrol will reduce production from its Las Malvinas natural gas plant in Peru while it repairs a leak detected in one of its pipes, Peru’s government said.

The energy and mines ministry announced an emergency measure to allow it to prioritize domestic natural gas supplies for households while Las Malvinas produces a third less natural gas on Tuesday. Output will nearly resume the normal daily level of around 1.4 billion cubic feet on Wednesday, it added.

Representatives of Pluspetrol in Peru did not immediately respond to requests for comment.

It was unclear how long the pipe at Las Malvinas had been leaking gas. The ministry said it was detected during a routine internal inspection.

Controlled by the Pluspetrol-led Camisea Consortium [PLUSPC.UL], Las Malvinas processes natural gas from blocks 88 and 65 in Peru’s Camisea fields and feeds Pampa Melchorita, the country’s sole liquefied natural gas (LNG) plant.

Pampa Melchorita is operated by Peru LNG [PELNG.UL], a company in which U.S.-based Hunt Oil controls 40%, with Royal Dutch Shell Plc, SK Innovation Co Ltd and Japan’s Marubeni Corp holding smaller stakes.

Last year, Peru suspended exports of natural gas and imposed fuel rationing due to technical issues at Las Malvinas that impacted production.

Reporting By Marco Aquino and Mitra Taj, Editing by Rosalba O'Brien