Intangible Fruits of Peruvian Economic Development

“Between 2004 and 2009, approximately $1.13 billion in revenue generated by the Camisea natural gas project was transferred to local governments in Camisea’s sphere of influence. However, more than five years after the start of operations, critical gaps in meeting the basic needs of local citizens remain.” -Oxfam
The natural gas industry in Peru has boomed since mid-2004, when natural gas from the Camisea Project, located in the Urubamba Basin in the southeastern Peruvian Amazon, began to flow. At approximately 1.7 billion USD, Peru’s Camisea Project represents the largest investment in the country’s history. Since the project’s 2004 launch, according to an Oxfam report published in July of 2010, Camisea has been satisfying part of the external market demand for natural gas, albeit at alarmingly low prices dictated by the existing contract.

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This analysis was prepared by COHA Research Associate Andrea Cornejo