Foster Wheeler to work as consultant on Peru gas pipelines expansion

Foster Wheeler has been awarded a contract by Wood Mackenzie to provide consultancy services for two projects in Peru, the company said on Wednesday.

The two projects are formally named the Energy Security and South Pipeline Project and the Energy Node in South Peru Project.

The Foster Wheeler contract value was not disclosed and was included in the company’s second-quarter 2013 bookings.

Foster Wheeler will develop the design and cost estimates for both planned investments. The company's scope of work is expected to be completed in the fourth quarter of 2013.

The principal stakeholders involved in these two projects are ProInversion, the Peruvian Government Agency responsible for promoting private investments and for the awarding process of these two projects -- and the Ministry of Energy and Mines, as the governing body of the energy and mines sector.

Wood Mackenzie has been contracted by ProInversion to promote private investment in infrastructure to strengthen the energy security of the country, to decentralize the power generation from the central area of the country and to promote the development of a petrochemical complex in the south of Peru as part of the Peruvian Government’s diversification initiative.

The Energy Security and South Pipeline Project involves the development of pipelines to support the existing natural gas and natural gas liquids (NGL) transportation system from Las Malvinas to the Chiquintirca compression station, and the development of the southern pipeline from the existing natural gas transportation system to the south coast.

The Energy Node in South Peru Project will involve the development of thermoelectric power generation plants with a capacity up to 2,000 megawatts to promote the development of an energy center and petrochemical complex in the south of the country.

“Both projects leverage our technical expertise in geographical information systems, pipelines and power plant design,” said Umberto della Sala, chief operating officer of Foster Wheeler.

“We will evaluate options for the proposed gas transportation infrastructure and routing, as well as power plant configuration and location, to accommodate the challenging Peruvian geography and to optimize the implementation schedule for the projects," he added.

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