Resource information
Extractive industry companies,
particularly those operating in areas of high biodiversity
value, on indigenous lands, or in close proximity to
communities, face operational and reputational risks related
to their environmental and social performance, and can be
subject to intense scrutiny from stakeholders. PERU
Liquefied Natural Gas (PLNG), the first liquefied natural
gas plant in South America, is an example of a high-profile
project facing multiple environmental and social risks.
Launched in 2007, the $3.8 billion project is one of the
largest industrial projects in Peru. PLNG is considered one
of Peru's key resources, and it is a core component of
the Peruvian government's energy strategy. Over the
course of six years, PLNG has shown a strong commitment to
managing environmental and social risks throughout all the
phases of the project. The project is currently in the
operations and maintenance phase, having completed
construction in 2010. Liquefied natural gas pipeline
projects are often associated with a number of environmental
and social risks that must be addressed by a comprehensive
risk management system. Some of the issues faced by the PLNG
project included: 1) several communities and other
stakeholders living in or using the project footprint; 2)
health and safety risks due to hiring large numbers of new
workers; 2) potential for safety incidents and accidents
from vehicle use; 3) the presence of ecologically sensitive
areas, particularly the Andean wetlands; and 5) the presence
of 35 rural Andean communities along the pipeline. This
lessons of experience publication documents experience and
lessons learned throughout the lifecycle of the project that
are transferable to other projects.
