Peruvian electricity demand continues to grow, fueled by the growth of the economy as well as the mining sector. Although the majority of the country’s generation capacity is from hydroelectric projects, its reliability is limited, which creates a tremendous opportunity for our Corvina Gas-to-Power project to meet growing demand.
We are advancing our Gas-to-Power project, which consists of constructing a 135 MW gas-fired power plant at Nueva Esperanza (New Hope), near the coastal town of Caleta Cruz in northwest Peru, just 10 miles from the offshore Corvina Gas Field. The power plant will be strategically located next to key electrical infrastructure for connecting to the power grid of Peru. The first 135 MW will require approximately 24 Mmcfd of natural gas. As independent reserves reports indicate, we should have ample productive capacity to fuel this plant for up to 20 years.
The Gas-to-Power initiative gives us a market for our regionally produced natural gas, transforming it into value-added electrical power that can be distributed and sold to local and regional power consuming markets. Participating in the full supply chain, from upstream production, to the distribution of gas to consumer and industrial users, to power generation, gives BPZ multiple avenues for creating value for customers and shareholders. It also establishes BPZ as an experienced integrated Gas-to-Power company capable of tapping other large stranded gas reserves found throughout South America.