Non-Binding MoU Signals Uncertain Path for Condor’s Gas Monetisation Plans
Condor Energy has signed a non-binding MoU with Promigas Perú to jointly explore natural gas supply and distribution opportunities from the Piedra Redonda gas field, aiming to unlock value in northern Peru’s energy market.
- Non-binding MoU signed between Condor Energy and Promigas Perú
- Focus on assessing gas supply from Piedra Redonda gas field with 1 Tcf contingent resources
- Joint evaluation of midstream and downstream infrastructure and market opportunities
- Collaboration supports Peru’s gas massification and energy transition goals
- Future commercial agreements subject to feasibility, regulatory approvals, and negotiations
Strategic Collaboration in Northern Peru
Condor Energy Limited (ASX – CND) has taken a significant step towards commercialising its substantial natural gas resource in Peru by signing a Memorandum of Understanding (MoU) with Promigas Perú S.A., a leading natural gas distributor in the country. The agreement sets the stage for a collaborative assessment of gas supply potential from Condor’s Piedra Redonda gas field, which holds an estimated 1 trillion cubic feet (Tcf) of contingent gas resources.
Promigas Perú brings to the table extensive experience in operating and expanding natural gas distribution networks across northern Peru. This partnership aims to marry Condor’s upstream resource capabilities with Promigas’ established midstream and downstream infrastructure, potentially accelerating the delivery of cleaner energy solutions to an underserved market.
Unlocking Value Through Joint Studies
The MoU outlines a framework for joint technical and commercial studies. Condor will focus on upstream development concepts, including subsurface evaluations and field facility designs, while Promigas will assess onshore facilities and distribution options such as pipelines, power generation projects, compressed natural gas (CNG), and small-scale liquefied natural gas (LNG) solutions.
This collaborative approach is designed to define potential gas supply profiles and identify downstream opportunities that could underpin future offtake agreements. While the MoU is non-binding and preliminary, it represents a clear pathway toward monetising the Piedra Redonda resource and integrating it into Peru’s broader energy infrastructure.
Aligning with Peru’s Energy Transition
Peru is actively pursuing a gas massification program aimed at expanding access to natural gas as a cleaner and more affordable energy source. The partnership between Condor and Promigas aligns closely with these national objectives, potentially supporting industrial growth, power generation, and job creation in northern Peru.
Condor’s Managing Director, Serge Hayon, highlighted the significance of the collaboration, emphasizing Promigas’ proven market presence and infrastructure expertise as key to unlocking the value of Condor’s resource while contributing to Peru’s energy transition goals.
Looking Ahead
While the MoU does not impose binding obligations, it lays the groundwork for future commercial arrangements. Any definitive gas supply agreements will depend on the outcomes of feasibility studies, regulatory approvals, including licensing from Perupetro, and successful negotiations.
As Condor advances its exploration and development activities in the Tumbes Basin, including the Piedra Redonda field, this collaboration could mark a pivotal moment in establishing an integrated gas value chain in northern Peru, linking upstream supply with downstream demand.
Bottom Line?
This MoU sets the stage for Condor to potentially transform its vast gas resource into tangible market value, but the road to commercialisation remains contingent on multiple critical milestones.
Questions in the middle?
- What are the timelines and key milestones for the feasibility studies and regulatory approvals?
- How might the partnership impact gas pricing and supply dynamics in northern Peru?
- What are the potential risks or challenges in integrating upstream and downstream operations under this collaboration?
