TGP has indicated willingness to consider this extension, which would integrate more southern regions into the national natural gas transport system. This infrastructure not only seeks to improve energy supply security but also to foster economic growth by lowering energy costs. TGP’s projections estimate household savings of 39% compared to alternative fuels, with even higher reductions in the automotive sector (57%) and industrial users (56%). These savings are expected to enhance regional competitiveness and increase purchasing power.
The construction phase of the pipeline is forecast to generate more than 20,000 direct, indirect, and induced jobs, while operational and maintenance phases would sustain roughly 420 permanent positions annually. The project benefits stem from increasing gas transportation capacity through a less complex coastal route compared to previous Andean projects, although social, environmental, and regulatory challenges remain. The current legislation requires adjustment to appropriately recognize the $2 billion investment and facilitate project approval.
This initiative contrasts with failed attempts to complete the larger Gasoducto Sur Peruano, which faced legal disputes and was halted in 2017. The government is working jointly with TGP to expedite licensing and ensure sustainable supply. A successful pipeline extension to Tacna would mark a strategic step toward comprehensive natural gas masification in southern Peru, supporting industrial expansion and reducing regional dependence on higher-cost energy alternatives.
This article was curated and published as part of our South American energy market coverage.
