President Alan García denied on Wednesday that Peru will face a natural gas shortage as a result of contracts that will export part of its domestic supply, state news agency Andina reported.
García said there are 15 trillion cubic feet of natural gas, which is a sufficient supply to meet both local demand and comply with export contracts to Mexico, which cover 4 trillion cubic feet over the next 18 years.
He added that in case of a supply crunch, legislation will allow the government to declare an emergency and redirect the natural gas from exports to the local market.
“[The contract] allowed investments of billions of dollars for exports, but also for the internal market,” García was quoted as saying, adding that it is important to “provide security” for investors to benefit from the development of natural gas.
Regional governments in southern Peru, however, are concerned that the exports will affect local supply.
The president of Cuzco’s regional government, Hugo González, for example, has called on the export contract to be canceled.
