Loan for Peru's LNG project

Published: Thursday 31 January 2008

A midst oppositions from environmental groups, the Inter-American Development Bank has approved a us $400-million loan for the construction of a liquefied natural gas (lng) project in Peru. The project will be the country's first lng export facility.

Camisea field is an important gas reserve in South America that Peru wants to develop as part of a broader plan to gain energy self-sufficiency. Environmental groups oppose the project, because it is located in the Amazon rainforests, which is inhabited by indigenous people. Besides, its main pipelines traverse through the steep Andes mountains and other national parks. Since March 2006, there have been five spills along the pipelines.

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