Repsol

Another key initiative

The Peru LNG project entails the construction and operation of a liquefaction plant in Pampa Melchorita, in which Repsol holds a 20% stake, and a gas pipeline that will connect with an existing pipeline at Ayacucho. Natural gas will be supplied to the plant by the Camisea consortium, in which Repsol also holds a share. In addition, the project anticipates that Repsol will have the exclusive right to market the output of the liquefaction plant, envisaged to be more than 4.5 million tonnes per year. 

The purchase-and-sale agreement signed with Peru LNG will have a validity term of 18 years from the date it becomes operational, and in terms of volume this will be the biggest LNG acquisition ever made by Repsol. In September 2007, Repsol was awarded the international public tender offered by the Federal Electricity Commission (Comisión Federal de Electricidad, CFE) to supply LNG to the natural gas terminal at the port of Manzanillo, on Mexico's Pacific coast.
 
The contract envisages the supply of LNG to the Mexican plant for a period of 15 years, at a volume greater than 67 bcm. The Manzanillo plant, which will provide gas to the CFE power stations in Mexico's west-central region, will receive gas from Peru LNG. At the end of 2008, construction work on the land terminal of the liquefaction plant had reached 68% completion, having progressed 41% over the course of the year. 

The level of progress on the marine installations is at 72% and the gas pipeline is at 62% completion. It is anticipated that this plant enter production in mid-2010. In December 2007, agreements were made for the financing of the project, which was concluded on 23 June 2008. The first external funding was disbursed in November 2008.

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