July 21, 2011 / 7:03 PM / 8 years ago

UPDATE 1-Peru approves study for TGP's gas pipeline plan

* Pipeline carries natural gas to coast from Andes * Project’s expansion will accelerate other energy plans (Adds details, quote from statement)

LIMA, July 21 (Reuters) - Peru’s government said it had approved an environmental impact study for the consortium TGP’s $589.3 million plan to expand a pipeline carrying natural gas from the Camisea field to the country’s coast.

Argentina’s Tecgas and Pluspetrol, U.S.-based Hunt Oil, Algeria’s Sonatrach, South Korea’s SK (096770.KS) and Peru’s Grana y Montero (GRA.LM) are part of the TGP consortium.

The expansion will increase TGP’S transport capacity to 1.27 billion cubic feet and 120,000 barrels of natural gas per day, the Ministry of Energy and Mines said in a statement.

The pipeline carries gas from the Camisea field in the Andean region of Cusco to the Peruvian coast.

The government’s green-light of the TGP project will likely accelerate the completion of other energy projects in the region, it said.

“From hence forth the company TGP will start assigning transport capacity, which will require other projects to be advanced, including the Ica pipeline and Marcona petrochemical, among others,” the statement said.

The expansion of the pipeline will help meet growing domestic demand for natural gas, which has risen sharply in recent years owing to greater use of the fuel in local industry, utilities and the vast mining sector. (Reporting by Patricia Velez; Editing by Alden Bentley)

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