Peru is advancing the US$2 billion, 572-mile Southern Extension gas pipeline project, led by Transportadora de Gas del Perú (TGP).

The pipeline connects Humay (Ica) to Ilo (Moquegua) and Arequipa, providing natural gas to southern regions such as Arequipa, Moquegua, Cusco, and Puno for residential and industrial use. This project is a major component of the national energy transition program.

The pipeline will initially carry 300 million standard cubic feet per day, sufficient to supply the Molledo and Arequipa thermoelectric plants.

To ensure TGP can recover its investment, the national investment agency and the Ministry of Energy and Mines are preparing a ten-year extension of the current concession contract, moving the expiration from 2033 to 2043.