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Andean Group - September 2011 (ISSN 1741-4466)

PERU: Renegotiating Camisea terms

Negotiations are in their final stages to re-jig Peru’s supply of natural gas and to ensure that the country retains enough for itself. Two Camisea blocs (Bloc 56 and Bloc 88), Peru’s largest known gas reserve, are currently available for export, thanks to a loosening of the original agreement in 2005 when President Alejandro Toledo (2001- 2006) held office. The country most likely to be affected by switching Bloc 88 to supply the domestic market is Mexico, a current recipient of Peru’s exported Liquefied Natural Gas (LNG).

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