Peruvian Energy and Mines Minister Pedro Sanchez has said that there are sufficient reserves in the Camisea fields to fuel the South Andean Pipeline.
Conduit Capital Partners subsidiary Kuntur signed a contract with the Peruvian Government to construct a $US1.35 billion, 1,086 km pipeline that will carry gas from the Camisea fields to the southern highlands of Puno, Arequipa and Moquegua.
Gas and liquids from the fields are currently shipped to a plant near Pisco on the Pacific coast.
Mr Sanchez has said that he expects Kuntur to publish an environmental impact study in January 2010, and construction is set to begin in 2012.