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Peru Natural Gas Crisis Disrupts Industry Supply

Bloomberg Markets •
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A pipeline leak in Peru's Camisea fields has halted natural gas shipments, triggering rationing across the country. The Transportadora de Gas del Peru SA pipeline leak may take until March 14 to fix, according to the operator. The affected fields in Cusco produce virtually all of Peru's natural gas, creating an immediate supply crisis.

Natural gas accounts for 30% of Peru's electricity generation and powers thousands of taxis and buses nationwide. The Ministry of Energy and Mines declared a state of emergency Monday, allowing fuel rationing that prioritizes domestic use over industrial consumption. The government warned that export operations could face disruptions amid global concerns over rising gas prices.

Peru's industrial guild is considering proposals to use alternative fuels like LPG or diesel during the shortage. In Lima, where nearly a third of Peruvians live, mass public transport receives priority while taxis and cargo vehicles face restrictions. Energy Minister Angelo Alfaro stated that homes won't be affected but warned that problems could arise if the emergency extends beyond two weeks.