• The award covers the construction and subsequent operation and maintenance of a 1,000-km-long gas pipeline in Peru
• The consortium consists of Enagás (25%) and Odebrecht (75%)
• Enagás will act as the “qualified operator” of the consortium and will be in charge of the operation and maintenance of the pipeline, while Odebrecht will be responsible for EPC (Engineering, procurement and construction)
• Through this transaction Enagás, which has been a shareholder of the main gas pipeline in Peru (TgP) since March 2014, has consolidated its positioning in Peru as a strategic operator and reinforced its long-term commitment to the country
The consortium made up of Enagás (25%) and Odebrecht (75%) has been awarded the project for the South Peru Gas Pipeline put out to tender by the Peruvian government.
The award covers the construction and subsequent operation and maintenance of a 1,000-km-long gas pipeline, which is key for safeguarding supply in Peru. The pipeline is scheduled to be brought on stream for commercial use in 56 months and the concession is for 34 years.
This transaction is in line with the criteria laid out in Enagás' Strategic Update for 2013-2015, as well as with the company's core business and its target profitability and debt-level figures.
During the construction, Enagás will invest around $250Mn in the project, which will be funded through a project finance structure. The take-or-pay contracts of the infrastructure enable revenue stability to be ensured.
Odebrecht is a Brazilian company which has been present in Peru for 35 years and is a leading specialist in constructing important projects in the infrastructures sector. For Enagás, Odebrecht is a strategic partner which offers capabilities that complement the company's own.
In the consortium, Odebrecht will bring the technical construction capabilities that are needed in a country like Peru, whereas Enagás, as a qualified operator, will contribute its extensive knowledge and experience in operating and maintaining a complex gas system, as is the case in Spain.