NEWS
Spain 's Repsol takes stake in Peru project
Madrid, Aug 1 (LNG journal)
- Spanish oil and gas company Repsol said it signed a final agreement with Texas Hunt Oil of the US to take a 20 percent stake in the Peru liquefied natural gas project.
Repsol said the Peru LNG project covers the construction and operation of the Pampa Melchorita gas liquification plant, which is expected to come on stream in 2009.
The agreement also gives Repsol exclusive marketing rights for the 4m tonnes of LNG per year the plant is expected to produce for export to the US West Coast, Mexico and Chile .
Hunt Oil leads the Peru LNG consortium with a 70 percent stake and partner South Korea 's SK Corporation has 30 percent. The agreement would bring Repsol into the consortium as a third participant.
Peru LNG has signed an agreement with the Camisea upstream consortium to supply 620 million cubic meters a day of gas from the Amazon jungle region to the liquefaction plant at Pampa Melchorita.
Repsol's incorporation in the Peru LNG project is in line with its 2005-2009 strategic plan to grow its upstream business and increase its presence in geographic areas and businesses with high returns, including LNG.
