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Weekly Report - 14 October 2010 (WR-10-41)

TRACKING TRENDS

PERU | Camisea discovery. President Alan Garcí­a celebrated the discovery this week of 1.7 trillion cubic feet of natural gas at the Camisea gas field. The Brazilian state-controlled energy firm Petrobras made the discovery in two wells at Camisea's Bloc 58. Garcí­a claimed that the find would ensure a stable natural gas supply to the southern cities of Juliaca, Moquegua, Puno and Tacna over the next 20 years. That he chose to place the emphasis on the benefits for Peruvians can be attributed to the sensitivity surrounding the export of gas from Camisea: the government guaranteed domestic gas supplies in early August after two weeks of protests over the fact that royalties on gas exports were lower than on domestic gas [WR-10-31]. The energy and mines minister, Pedro Sánchez, also suggested that domestic needs would be met first, saying that the find would enable Peru to “meet the needs of a growing economy." He said that it would enable current output to almost double from 350m cubic feet to 650m cubic feet per day.
Despite the government's assurances, some 600 protesters marched in central Lima on 12 October, days after the discovery, to demand more control over their natural resources. The march was organised by Mario Huamán, the head of the umbrella trade union Confederación General de Trabajadores del Perú (CGTP), and Alberto Pizango, the head of the indigenous Asociación Interétnica para el Desarrollo de la Selva Peruana (Aidesep), who recently returned to Peru after fleeing the country in the wake of violent clashes between the police and members of Aidesep in Bagua in June 2009. Both men presented congress with a list of demands and called on Garcí­a to recognise that the majority of Peruvians voted for a change in direction in the recent regional and municipal elections.

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