Micro-LNG for Energy Security in Northern Peru: A Techno-Economic Framework Based on Mature Gas Fields (#1741)

Authors

Huaytán Ponce, Javier Francisco

Adaniya Higa, Beatriz Juana

Abstract

This study proposes and evaluates a technical and economic framework for the decentralized supply of liquefied natural gas (LNG) aimed at strengthening energy security in northern Peru. This is achieved through the implementation of a Brownfield LNG micro-plant integrated with existing gas infrastructure in the Paita area, Piura Department. The methodology combines process simulation for selecting micro-scale liquefaction technologies, assessing the availability of gas from nearby mature fields, modeling investment, operation, and storage costs, and conducting a financial evaluation based on discounted cash flow using a weighted average cost of capital (WACC) adjusted for country risk and regulatory requirements for strategic storage. The results indicate that using a mixed-refrigerant liquefaction scheme, supplied with local gas from the Paita-Piura area, allows for a technically viable and financially attractive project. This results in a positive net present value and an internal rate of return higher than the project's WACC, while maintaining competitiveness compared to the centralized LNG supply from the Melchorita plant. The sensitivity analysis identifies the LNG selling price as the main driver of profitability, defining a viable negotiation window between the producer and industrial users. Furthermore, the incorporation of a strategic LNG storage system equivalent to 30 days of consumption, in accordance with current regulations, significantly improves the resilience of the regional supply and the project's economic performance during disruptions. The study demonstrates that Brownfield micro-LNG projects, supplied by mature gas fields, constitute a replicable alternative for decentralizing supply, reducing vulnerability to logistical and social disruptions.