The Dallas-based Inter-American Development Bank (IADB) said Thursday that it will formally review Peru LNG’s request for a direct loan of $400 million for the development of a liquefied natural gas (LNG) export project in Peru. The project would deliver LNG to regasification terminals on Mexico’s West Coast and potentially to the U.S. West Coast starting in 2010. Hunt Oil, Spain’s Repsol and Korea’s SK Corp. are partners in the project, which would be located in Pampa Melchorita, Peru. The total investment in Peru LNG is expected to reach up to $3.2 billion. The project will take 620 MMcf/d of natural gas from the Ayacucho Mountains through a 250-mile, 32-inch diameter pipeline to the single-train liquefaction plant on the coast south of Lima, where it will be put into tankers bound for the western seaboard of North America. The Camisea E&P project has 8.7 Tcf of estimated reserves and adjacent development is expected to access another 3.5 Tcf of reserves. Gas production will likely exceed domestic demand for the foreseeable future, so project sponsors would like to export any excess to the North American West Coast.

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