Peru LNG is a natural gas export project that will support economic growth in some of Peru’s poorest regions and will be the largest foreign direct investment in the country’s history.
IFC’s $300 million loan for the project was signed on June 26, 2008. In addition to financing, IFC is advising Peru LNG to help optimize its environmental approach and ensure that local communities benefit.
Totaling $3.8 billion in costs, Peru LNG will be Latin America’s first liquefied natural gas export project. It includes a liquefaction plant and a marine loading terminal on Peru's central coast, as well as a new 408-kilometer pipeline that will connect to an existing pipeline network east of the Andes. The project is expected to make Peru a net gas exporter after operations begin in 2010.
With IFC’s support, Peru LNG is enhancing opportunities for local businesses to sell goods and services to the project, raising people’s incomes and job prospects. IFC is developing programs to engage local communities in monitoring the effects the project will have on their lives. IFC is also establishing training for nearby municipalities to make best use of the significant new revenues they will receive as a result of the project. These programs build on IFC’s experience with similar initiatives in some of Peru’s poorest regions.
The project will help generate significant tax and incremental royalty payments to the government, equivalent to over 1.5 percent of current state revenues.
