The government has been making a concerted effort to develop the natural gas industry in Peru since the Camisea gas project came on stream in mid-2004: key to the project, however, is the pipeline. Currently, gas is exported from Peru's SE jungle to a plant in Pisco for separation into propane, butane, naphtha, and diesel. Natural gas is also transmitted to electricity-generating stations and for use in industrial plants. State oil company Petroperu SA and Suez Energy International signed a memorandum of understanding in March to carry out a feasibility study for the pipeline. According to Mr Valdivia, the two companies have now completed a prefeasibility study for the project. "The prefeasibility study allows us to clearly see that it is possible to finance this work," the minister said. According to Mr Valdiva, the proposed pipeline will be 700km long. Petroperu is also understood to be in the process of carrying out a feasibility study for the petrochemical complex in association with Brazil's Petrobras. The general manager of Petrobras' Peruvian unit, Pedro Grijalba, said recently that these studies have advanced significantly. However, he said that it is imperative that Peru's government approve legislation to define the framework for the petrochemical industry in the country. According to Mr Valdivia, the legislation being currently proposed will provide tax benefits for the project to ensure that it is profitable.