Spanish energy company Repsol announced the start of production from Kinteroni gas field in Peru, estimated to hold at least 2 trillion cubic feet of reserves.
Kinteroni, discovered in 2008, holds between 2 trillion and 3 trillion cubic feet of natural gas. Repsol said the play would give up reserves at an initial rate of 20,000 barrels of oil equivalent per day, a rate that could double in 2016.
Repsol said the start of production at Kinteroni is part of a five-year strategic plan that began in 2012. Assets covered under the plan have allowed the company to increase its annual rate of production by 7 percent.
Peru became a natural gas exporter in 2010 with the launch of its Melchorita liquefied natural gas plant, owned by a consortium that includes Repsol.
The U.S. Energy Information Administration said Peruvian gas production has increased exponentially since 2004 to a rate of more than 400 billion cubic feet per year.