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Peru pair plan southern gas pipe

Suez Energy and Kuntur Gas Transport have presented the Peruvian government with plans to build two gas pipelines, worth about $2 billion, to help meet energy demand from the country's booming mining sector.

Both links would be supplied by gas from the Camisea field.

Suez said it has asked Peru's government for permission to build a $1 billion, 834 kilometre pipeline from Ica, in southern Peru, to Ilo, near the coast. The price tag includes construction of a power plant.

Kuntur, meanwhile, has presented Lima with plans for a $1.2 billion, 1085 kilomtre link, also in in southern Peru.

Reuters quoted Manlio Alessi, Suez Energy's Peru boss, as saying: "We foresee the pipeline starting its commercial operations before December 2011, but if the first stage goes quickly, it could start as early as the first half of 2011."

Kuntur's planned link would serve the Andean cities of Cusco, Puno, Arequipa and Moquegua.

The company said the mining and energy ministry has 90 working days to respond to its request.

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