Peru will likely open bidding late this year on the rights to build a liquefied petroleum gas (LPG) pipeline to help prevent supply crunches that have prompted the import of 292,000 barrels of the fuel, its government.
The proposed pipeline will transport LPG from a processing plant in the coastal town of Pisco to Lima, helping boost reserves in the capital, said deputy energy minister Raul Perez.
The pipeline will cost about $250 million, according to Proinversion, the state agency tasked with public infrastructure auctions.
"We calculate that towards the end of the year we can open bidding so that it's built in nearly three years," Perez said on local broadcaster RPP.
Recent repairs on pipelines that move natural gas to Pisco from Peru's central jungle curbed production of LPG in recent weeks while rough seas disrupted shipments to Lima, Perez said.
LPG is mostly derived from natural gas in Peru.
The local units of Repsol and Grupo Zeta distribute LPG for use in homes and cars in Peru. TV images showed gas stations packed with cars that run on the fuel and people complaining about the shortages.
