U.S.-based Hunt Oil Co. has been emitting considerable greenhouse gases from its major gas export terminal in Peru without authorization for over 12 years. This finding, from an investigation by Peru’s Convoca and research group Point Source, raises concerns about the oversight and regulation of energy companies in Peru, a country that exports liquefied natural gas (LNG) to Japan, the U.K., the Netherlands, and South Korea.
The facility, owned by the joint venture Peru LNG—of which Hunt Oil Co. holds a 35% stake—burned off an estimated 55.5 million cubic meters of unused gas between Jan. 1, 2012, and Dec. 31, 2024. This practice, known as “flaring,” requires prior authorization under Article 44 of Peru’s hydrocarbons law, a permit that the Ministry of Energy and Mining (MINEM) did not grant, according to Convoca.
Methane Venting
The facility has also directly released methane into the atmosphere, a process known as “venting,” which is more environmentally harmful than flaring. A significant venting event occurred on July 27, 2023, when methane was released at 882 kg/h, as recorded by GHGSat. Regulations prohibit venting unless unavoidable, such as in emergencies. Companies must report venting events within 24 hours to the General Directorate of Hydrocarbons and Osinergmin, Peru’s energy and mining regulator. However, Osinergmin found no request or authorization for the July 2023 incident.
Rising Volumes
Flaring at the Peru LNG terminal more than doubled last year, with 10.3 million cubic meters flared in 2024 compared to 4 million in 2023. This increase has raised concerns about poor maintenance and potential cost-cutting at the facility. The terminal’s flaring exceeded 10 million cubic meters twice since 2012, while gas exports have declined from a peak of 5.7 billion cubic meters (BCM) in 2012 and 2013 to 4.7 BCM in 2024, according to the Energy Institute’s Statistical Review of World Energy.
“Rising flaring volumes from this terminal is alarming and points to operational issues and a potential lack of proper maintenance,” said Justin Mikulka from Oilfield Witness.
Methane Concerns
Experts suggest the methane venting incident in July 2023 might be one of many, with others undetected due to tracking challenges. “The methane flare detected is likely a fraction of true emissions,” said Mikulka, noting the difficulty of quantifying emissions with only periodic satellite observations. A report by the International Energy Agency in May 2023 indicated global methane emissions might be 80% higher than reported. Hunt Oil Co. declined to comment on the July 2023 methane release.
Environmental Claims
The emissions from the facility have raised concerns that Peru LNG may have misled authorities when applying for construction permits. In 2003 environmental impact assessment documents, the company claimed flaring would occur “only in emergencies.” However, satellite data revealed regular flaring, with the flare active 38% of the time in 2024.
Environmental Violations
Since Peru LNG’s formation, the environmental assessment and enforcement agency OEFA has documented 17 infractions. These include site violations and issues along the 408-kilometer gas pipeline, with fines totaling PEN408,000 ($121,000).
Justin Mikulka commented, “This is just the latest chapter in a long history of extractive companies from North America profiting while polluting Latin America.”
Wider Issues
While LNG is promoted as a cleaner alternative to oil and coal, emissions remain a concern. A 2024 study found LNG to be 33% worse than coal in terms of emissions over 20 years. Health impacts on nearby communities are also a concern, with the Bullard Center’s report highlighting air quality degradation from LNG facilities.
Global Boom
The rise in greenhouse gas emissions from the Peru LNG terminal raises concerns about the global increase in LNG usage. The International Energy Agency projects an additional 300 billion cubic meters of LNG capacity by 2030. Eszter Matyas of Greenpeace noted, “The climate crisis demands a rapid phase-out of fossil fuels, including ‘natural’ gas.”
Hunt Oil Co. stated: “As a privately held company, we have a longstanding policy of not commenting on our operations around the world.” Peru LNG also declined to comment on its emissions.
Original Story at insideclimatenews.org