Update: Peruvian natural gas workers strike averted, no threat to LNG exports

The strike planned by SUTRAPPEC; the union of Peruvian natural gas workers has been averted following an intervention by the minister of energy and mines, Gonzalo Tamayo, local media reports. 

Sindicato Unitario de Trabajadores de Pluspetrol Perú Corporation initially planned a strike for December 29 stating its negotiation with Pluspetrol, of Argentina, the operator of the Camisea natural gas project, for better working conditions have broken down.

The strike would have threatened the gas supplies to Peruvian households and the LNG liquefaction and export plant at Pampa Melchorita.

The Camisea gas consortium comprises Pluspetrol with a 27.2 percent controlling stake, U.S. company, Hunt Oil, holds a 25.2 percent stake, South Korea’s SK Innovations owns a 7.6 percent stake, while Tecpetrol, Sonatrach and Repsol each have a 10 stake in the project.

However, according to the report by the Peruvian newspaper La República, the strike has been averted. The newspaper cited minister Tamayo as saying the strike will not happen under any circumstances.

It was also reported that, following the union’s decision to go on strike, the ministry of labor acted as a mediator in discussions with Pluspetrol, which persuaded the company to meet some of the demands of its workers. According to the report the salary rise of 6.5 percent has been negotiated, together with a number of bonuses.

Further updates to the article will be made once the union responds to LNG World News request for comment.

The Pampa Melchorita liquefaction facility receives gas through a 408 kilometer pipeline stretching from the highlands in the Peruvian Andes to the coast. The plant has a nominal capacity of 4.4 million tons per year and processes 620 MMcfd of natural gas. Since it started operations in June 2010 it has shipped 371 cargoes of the chilled fuel.

The export facility is operated by Peru LNG, a consortium of Hunt Oil company with a 50 percent stake, SK Energy and Shell with a 20 percent stake each and Marubeni with a 10 percent stake.

In addition to the 20 percent equity stake, the Hague-based giant, Shell, owns a 100 percent of the offtake at Peru’s Pampa Melchorita LNG export facility that is supplied with natural gas from the Camisea project.

LNG World News Staff