Peru upgrades plant to firm up gas output

Oct. 15, 2010 at 2:36 PM
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LIMA, Oct. 15 (UPI) -- Peru is spending $32 million on stabilizing gas supplies as part of an attempt to boost industrial diversification and exports and push forward poverty reduction programs.

Contract for the upgrading was awarded to GE Oil & Gas, a leader in advanced technology equipment and services for all segments of the oil and gas industry, with headquarters in Florence, Italy.

GE Oil & Gas said it secured the contract from PlusPetrol Peru Corp. S.A. to supply compression and reinjection upgrade equipment. The upgrade is designed to boost the output of the Malvinas Natural Gas Liquid processing plant, located 240 miles from the capital Lima at the southern end of the Peruvian Amazon Rainforest.

Peru is rated as an emerging economy but still faces the challenge of reaching out to about 35 percent of its 29.5 million population who live below the poverty line. Worst affected by the income disparities are black, indigenous and racially mixed communities that form about 80 percent of the population.

With growth in manufacturing President Alan Garcia's government launched a series of programs to improve income distribution through creation of jobs and improvement of working conditions at existing centers of employment.

The contract with GE provides for an upgrade of two existing GE Frame-5C Dry Low Nox gas turbine modules with Frame-5D DLN technology to reduce emissions and Extendor kit technology to reduce outages and extend the life cycle of the equipment. In addition, three existing Frame-5D DLN modules will be upgraded with Extendor kits, the company said.

Jeff Nagel, vice president global services for GE Oil & Gas said the Malvinas NGL plant "is vital to meeting demand for gas in Peru and other areas." He said securing the PlusPetrol contract would strengthen the company's relationships Latin America's NGL sector."

The equipment was manufactured in Florence, Italy, and shipped to Peru in March 2010. With the use of trucks prohibited in the environmentally sensitive region, GE overcame the logistical challenge of "on-time" delivery by taking advantage of seasonal swelling of the Amazon and Urubamba Rivers to transport the two 60-ton modules to the Malvinas plant.

GE says it is expanding its presence across Latin America's oil and gas sector, with more than 1,000 gas turbines and compressors installed throughout the region. In addition, the company has been involved through regular inspections with the upkeep of more than 83,000 miles of oil, gas, water and refined product pipelines in Latin America.

GE Oil & Gas employs more than 12,000 people worldwide and operates in more than 100 countries.

GE is a diversified infrastructure, finance and media company involved in a range of fields from aircraft engines and power generation to financial services, healthcare solutions and television programming. GE operates in more than 100 countries and employs about 300,000 people worldwide.

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