Mexico plans to buy 25 billion U.S. dollars worth of natural gas from Peru and a contract may begin in 2011 and last 25 years, Mexico's Ambassador to Peru Antonio Villegas told media on Wednesday.
The gas will come from the Peruvian gas field of Camisea in the southeastern Cuzco department. The deal has yet to be concluded with a successful bidding by the firm Peru LNG for the contract from Mexico's Federal Electricity Commission.
The matter will be discussed by Mexican Foreign Minister Luis Derbez and Peruvian officials during his official visit to Peru, which begins on Thursday.
Under the proposed contract, Peru would provide Mexico with 500 million cubic feet of gas every day for 25 years, costing Mexico an average of one billion dollars a year.
"It would mean a big capital injection into Peru and would be of great strategic importance to both countries," Villegas said.
Peruvian forecasts estimate that Camisea will produce 850 million cubic feet of gas a day in 2007 and that its total gas reserves stand at 14 trillion cubic feet.