Promigas SA ESP
Promigas SA ESP
10/25/2022 | Press release | Distributed by Public on 10/25/2022 10:33
Promigas' subsidiary, Quavii, inaugurates the Natural Gas Distribution System in the Piura Region
Promigas' subsidiary, Quavii, inaugurates the Natural Gas Distribution System in the Piura Region
Piura, August 25, 2022.
Promigas' subsidiary in Peru, Quavii, inaugurates the Natural Gas distribution system in the Piura region to the north of the country.
This milestone is the main stride towards the massification of natural gas in Peru in recent years. To date, more than 8,000 Piuran households are connected to the natural gas service and 20 local industries rely on this energy source.
With an executed investment of US$130 million, Promigas' subsidiary, Quavii, inaugurated the natural gas distribution system a year in advance in the Piura region, a province to the north of the country. The system is made up of a 240-kilometer steel gas pipeline, 220 kilometers of polyethylene distribution networks, and five stations in Piura, Paita, Sullana, Talara, and Sechura.
This inauguration was accomplished in record time, before scheduled deadlines, allowing natural gas connectivity to more than 8,000 households in the region and 20 local industries. Furthermore, the company continues to expand its infrastructure to benefit 300,000 citizens in the coming years. At the inauguration event, the first rural household was connected to the public natural gas service, benefitting from 50% savings compared to using Liquefied Petroleum Gas cylinders.
"Today, our subsidiary in Peru, Quavvii, has accomplished the main energy milestone in Peru in recent years with the inauguration of the natural gas distribution system in Piura. This is a major step towards progressively offering the benefits of reliable, affordable, and safe supply to more households in Piura and consolidating the massification process in the northern region of the country," said Juan Manuel Rojas, president of Promigas.
More than US$130 million have been executed, out of the US$237 million committed by the company for the concession. "In Piura, we have widely exceeded the commitments adopted, and the objective is to excel beyond the terms set forth in the concession contract," Rojas said. The natural gas distribution achieved by Quavii in Piura in 2019 aims to benefit 64,000 families, 640 entrepreneurial businesses, 10 NGV service stations, and 45 industrial customers in its first eight years of commercial operation, including the New Talara Refinery and the Miski Mayo mining company, for whom natural gas supply is guaranteed.
In the second half of 2022 alone, the concessionaire plans to invest an additional US$16 million to connect more than 10,000 households to the natural gas public service in the region by year-end. With the current infrastructure in place, Piura boasts the lowest average natural gas rate in Peru.
Social investment and special projects
As part of Quavii's commitment to community development, the company executes 21 social infrastructure projects amounting to more than US$3 million to benefit 80,000 citizens. On the other hand, the company announced that it will bring its inclusive non-bank financing model, Brilla, to the Piura region, which has granted 4.8 million loans since its inception in Colombia, currently benefitting families in four regions to the north of Peru.
Along these same lines, the company is executing the Project for the Promotion of New Concession Networks in Piura, including the construction of natural gas distribution networks in three additional locations in the region: La Tortuga population center and the districts of La Brea-Negritos and El Alto (Talara), which were not initially included in the connection plan. This project is executed entirely with resources from the Energy Social Inclusion Fund (FISE), whose works will require a US$9.5 million investment and will include the construction of 120 kilometers of networks to benefit 6,561 additional households.