Peru: natural gas pipeline

Conduit Capital Partners LLC, a private equity investment firm based in New York City, has announced that its subsidiary, Kuntur Transportadora de Gas, S.A.C., has been awarded a 30 year concession contract by the Government of Peru to build a 700mi pipeline that will carry natural gas from the Camisea gas fields to the port of Ilo in southern Peru. Development and construction costs for the pipeline, known as the Gasoducto Andino del Sur, are estimated to be USD 1.4 billion. Official signing of the concession contract took place on October 6th, in the cities of Cuzco, Arequipa and Ilo, which are three of the main cities along the proposed pipeline route, between the Government of Peru, represented by President Garcia, and Gomez. Conduit will now begin the full development of the project, including the signing of firm off-take contracts, environmental studies, detailed engineering, financial structuring and the incorporation of additional equity participants. Construction is expected to begin in 2010 and the pipeline should be operational by the end of 2012.
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