Colombian Promigas, Peru Kuntur in Talks for Alliance on Concession of Gas Pipeline in Southern Peru

Colombian gas utility Promigas is in talks with U.S. Conduit Capital Partners, owner of Peruvian Kuntur Transportadora de Gas (Kuntur), for alliance for the concession of a gas pipeline to be built in southern Peru, Colombian media reported on June 9, 2008.

Conduit Capital Partners said that it was also negotiating with an unnamed construction firm to build the pipeline, should Kuntur win the concession.

The pipeline, named Gasoducto Andino del Sur, will demand investments of $1.2 bln (770 mln euro). It will allow the transportation of natural gas from the deposits in the region of Cusco to 16 provinces in southern Peru, including the cities of Cusco, Arequipa, Matarani and Juliaca.

Kuntur's president, Samuel Gomez, said that the role of each company in the consortium was now under consideration.

Promigas (www.promigas.com) activities include natural gas transport and distribution, gas pipeline construction, operation and maintenance, and data, voice and image transmission services along with high-speed connection to the Internet. Promigas is controlled by U.S. power company AEI, which in turn is controlled by Ashmore Investment Management Ltd., part of Ashmore Group PLC. In Peru, Promigas is involved with the gas transportation in Lima and Callao via Peruvian natural gas company Calidda Gas Natural del Peru. Promigas and Ashmore Energy International, a company owned by British Ashmore Investment Management, acquired 100 pct in Calidda in mid-2007. After the operation Promigas holds 40 pct in Calidda, while Ashmore acquired the remaining 60 pct. Ashmore controls 53 pct in Promigas.

Now, the development of the gas pipeline project depends on the approval of the Peruvian Mines and Energy Ministry.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: June 10, 2008