Peru taps its fuel reserves to fight worst energy crisis in 20 years

Denisse Miralles, the Prime Minister, said that 'the Peruvian government will use its fuel reserves to safeguard the domestic supply.' This comes after a gas pipeline rupture triggered what has been described as the worst energy crisis for 20 years.

She added that the government will encourage public and private sector employees to work remotely, while converting schools to online education.

Emergency measures were taken after the suspension of natural gas exports by Peru on Thursday, as it tries to control the consequences of Sunday's gas-pipeline explosion that snuffed out energy supplies and caused a power crisis.

Angelo Alfaro, Minister of Energy and Mines, told Congress on Thursday that "the reduction in gas supply is tremendous... only 10% are being delivered."

The National Chamber of Mining, Oil and Energy SNMPE said on Friday that its members are working to minimize any impact on the public and they hope to import a LPG shipment "in record time."

Peru is the second largest?copper-producing country in the world, and the mining industry is a key pillar of the economy. It also consumes a large amount of the domestic energy supply.

Transportadora de Gaz del Peru (TGP), the operator of the Megantoni pipeline, shut down a section to isolate the leak. The 'company' implemented temporary restrictions on the gas supply to industrial and electricity users in order to prioritize residential services and essential services.

Pluspetrol, the energy company that produces LPG in Pisco, had to suspend production due to an outage. This plant accounts for 70% of Peruvian LPG consumption. Reporting by Marco Aquino; Editing by Daina Bet Solomon and David Gregorio

(source: Reuters)