Cálidda to invest US$35mn-37mn this year

Gas distributor Cálidda, which serves Lima and neighboring port city Callao, this year plans to invest US$35mn-37mn to expand the distribution network, according to Peru's energy and mines minister Juan Valdivia.

The expansion would benefit residential and industrial users as well as power generators and VNG stations. Cálidda plans to connect at least 12,000 homes a year starting this year.

"We want to advance with residential connections but there still are some problems because Lima has a temperate climate and it is not attractive for natural gas use," state news agency Andina quoted Valdivia as saying.

"The connections are very expensive and the benefit would be minimal because the majority of Lima residents will use the gas only for stoves."

The minister said a proposal from Cálidda is under evaluation to replace costly copper piping with a mixture of aluminum and plastic.

"We expect to reach an agreement this week to authorize the use of this material which is used in Colombia, the US and almost all countries that use natural gas within homes."

Energy and mining investment watchdog Osinergmin has already approved the change, he said.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: January 22, 2008

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