Challenges, Hazards And Benefits Of Pipelines Crossing The South American Andes

Latin America has an abundance of land-based natural gas and oil reserves, with large amounts found in the Amazonian basin and Andean region.

Normally, these resources are transported to the coastal areas by an ever-expanding pipeline system (Figure 1), where pipelines stretching westward or northward cross an especially diverse environment and geography.

The most significant recent additions to these western-reaching pipeline systems are the Oleoducto de Crudos Pesdaos (OCP) in Ecuador and the Camisea Natural Gas and Natural Gas Liquids pipeline system in Peru. The gas pipelines of the Camisea system are being expanded by construction of a compressor station, a gas liquefaction plant along the Peruvian coast and an additional pipeline. Moreover, new pipeline projects are under consideration, such as the Kuntur pipeline connecting the south of Peru with the Camisea gas field and the further expansion of the existing Camisea pipeline system.

There are extensive gas and oil exploration activities under way which will likely result in additional proven reserves and subsequent need for new pipeline projects. These new pipelines will cover portions of the Amazonian rainforest, the mountain rainforest along the eastern flank of the Andes, the Andean plateau and the rural and urban low lying desert areas of the Pacific Coast.

This article briefly discusses some of the important engineering-related challenges and issues related to pipeline projects in the region. Clearly, there are other important factors (e.g., financial, security, environmental and social aspects) that need to be properly managed.

Government

A clear government expression of interest for a particular pipeline project is needed when the project is not a government concession. For example, an official energy and economic development policy should establish the government’s commitment, and such commitment must be sustained, especially during unanticipated events. Therefore, a clear understanding of the country’s future internal demand for gas and oil versus exportation demands needs to be established. This is especially relevant given the relatively large amount of ongoing exploration and potential development of various pipeline options in Peru.

Government institutional capacity also needs to be considered. Governmental concessions must be properly designed and strong governmental technical supervision and oversight provided. Strong institutional capacity is more critical when dealing with complex pipeline designs requiring governmental review and approval. As more oil and gas activities start, the existing institutional capacity may be stressed, especially if governments attempt to pursue multiple large or “mega-type” projects simultaneously.