Peru Energy Explained, From Camisea Gas to Oil

PERU · ENERGY

Peru runs on gas from one place, the Camisea fields in Cusco region, where three lots produced about 95% of the country’s gas in July 2026. That share is our addition of figures from Perupetro, the state agency that signs oil and gas contracts.

Oil has shrunk to 36,930 barrels a day, 23% below a year earlier, and a pipeline incident on 1 March 2026 showed what a gas stoppage costs. This guide explains where Peru’s gas, oil and electricity come from, who collects the money and what could go wrong.

Peru’s lights, buses and factories depend on one gas field system in the Cusco jungle, while its oil industry shrinks.

Where Peru Gets Its Gas

Perupetro divides Peru into numbered contract areas called lots, and it reports that Lot 88 produced 979 million cubic feet a day in July 2026, Lot 56 produced 302 million and Lot 57 produced 199 million, all in Cusco region. The Peruvian Hydrocarbons Society, an industry association, compiled those figures from Perupetro data and published them on 6 August.

National output was 1,554 million cubic feet a day in July, slightly above June’s 1,551 million and 9.6% above July 2025. The three Camisea lots therefore supplied about 95% of the total, and all other fields together supplied about 74 million.

Minem, the Ministry of Energy and Mines, counted 7.1 trillion cubic feet of proven gas reserves at the end of 2024 in its annual hydrocarbons resources book. At current use that is a little over 13 years of supply.

Perupetro also puts prospective resources at about 45.9 trillion cubic feet, which means gas that may exist but is not yet proven. The most difficult area to explore is Candamo, a prospective gas area inside the Bahuaja Sonene National Park, according to Perupetro spokesperson Pedro Arce.

What Happened When Camisea Stopped

On 1 March 2026 an incident at the valve station at kilometre 43, in Megantoni district, Cusco, led Transportadora de Gas del Perú (TGP), operator of the Camisea gas pipeline, to stop gas and gas-liquids transport as a safety measure. Osinergmin, the energy regulator, said Minem declared an emergency for 1 to 14 March 2026 and activated a rationing mechanism during it.

Under that mechanism the gas left in the pipes went first to homes, shops and the filling stations that supply public transport. Osinergmin also said that gas-fired power plants were temporarily replaced by back-up plants burning diesel, which kept electricity flowing nationwide.

Osinergmin found that TGP failed to supply enough gas flow and pressure to meet peak daily demand between 1 and 13 March. Gas-fired plants and filling stations were the first to feel it, because the rationing order protected homes and shops.

In April the regulator concluded that the operator breached its concession contract, which requires the system to be available 99% of a continuous year. It sent its audit reports to Minem, the ministry that grants the concession, to decide what action to take.

How Gas Becomes Electricity

Minem’s electricity directorate reports that Peru generated 5,754 gigawatt-hours (GWh, one million kilowatt-hours each) in August 2026, 6.1% more than in August 2025. Gas plants produced 2,767 GWh, up 10%, and hydropower produced 2,214 GWh, up 0.6%.

That makes gas about 48% of August generation and hydropower about 38%. Solar produced 262 GWh, up 38%, and wind produced 289 GWh, down 19%, so the two together supplied about 10%.

The March emergency showed the weak point of this mix. When gas stops, diesel back-up plants must step in, and they cost more to run.

Roberto Tamayo, a former Minem electricity director, told the same Cusco conference that renewables are displacing gas in power generation. He also said gas will still be needed for the next 100 years, especially in combined-cycle plants, a more efficient type of gas plant.

Why Oil Is the Smaller Story

Peru produced 36,930 barrels of oil a day in July 2026, a slight rise from June but 23% below July 2025, according to the same Perupetro-based figures. The largest producer was Lot 95 in Loreto at 10,658 barrels a day, followed by Lot X in Piura at 8,233 and Lot Z-69 in Piura at 2,954.

Those three lots together made up about 59% of the national total, which shows how thin the base has become. Several lots, including Lots 67, XV, XX and Z-6, recorded no production in the month.

Talara refinery in Piura, run by the state oil company Petroperú, has a nominal capacity of 95,000 barrels a day. Energy and Mines Minister Guillermo Shinno said on 17 August that it was processing about 60,000, roughly 63% of capacity.

Shinno said the new Petroperú board has been told to find out why the plant cannot reach its designed rate. He added that reaching 95,000 barrels would require a significant investment.

Peru Also Sells Gas Abroad as LNG

The Peru LNG plant at Pampa Melchorita, in Cañete south of Lima, chills gas into LNG for export. Perupetro data show it loaded 34 cargoes from January to September 2026, against 40 in the same months of 2025.

Volume fell about 10%, from 6.06 million to 5.45 million cubic metres. South Korea took 2.51 million cubic metres, or 46.1% of the total.

Who Collects the Money

Raúl García, hydrocarbons manager at SNMPE, the national mining, oil and energy society, said at an energy conference in Cusco, reported on 25 May, that gas contracts run for 40 years and oil contracts for 30. He said they have no clear renewal mechanism.

Carlos Gonzales, general manager of the consultancy Enerconsult, told the same conference that the Camisea lots pay a flat 37% royalty. He said Camisea has generated S/67 billion (about US$19.7 billion at S/3.41 per US$, the 11 November spot rate) in fiscal revenue, and half of that went to Cusco through the canon, the share of resource income that producing regions receive.

Those transfers are a big part of why regional politics matters to energy. For how regional governments are built and funded, see how Peru’s regions and provinces work, and for the next vote see Peru Regional Runoffs and Local Voting Explained.

Peru’s wider resource base, from gold to zinc, is covered in Peru’s natural resources, and the metals that earn most export income are in the guide to copper mining. Gas is the one resource that also keeps the grid running.

What Comes Next

The pressing questions are whether new gas can be found and whether the pipeline can be made more robust. Perupetro points to Candamo and other prospective areas, and the business story of what is waiting on rules is told in four gas projects waiting on regulation.

The regional runoffs on Sunday 6 December 2026 will fix who governs several regions for 2027 to 2030. The National Elections Jury (JNE), the electoral court, set that date on 7 October for races where no ticket won 30% of valid votes.

What It Means for US Readers

Peru’s LNG goes mostly to South Korea rather than the United States, so American gas buyers are not directly exposed to a Camisea outage. The exposure is for travellers, expats and companies operating in Peru, who share a grid that gets about half its power from one gas system.

For investors in Peruvian utilities, miners and Petroperú-linked debt, the March break is the clearest test case of how fast supply can fail. A repeat would again push the system onto costlier diesel back-up.

What Is Not Known

The full economic cost of the March outage has not been published in an official figure that we could confirm. We also could not find a public response from TGP to the finding that it breached its contract.

It is not known how much gas Candamo holds, because the estimate is unconfirmed and the site lies in a protected park. Minister Shinno has not yet said why Talara runs below capacity, and the board’s review is still under way.

Frequently Asked Questions

Where does Peru get its gas?

About 95% of Peru’s gas in July 2026 came from Lots 88, 56 and 57 of the Camisea fields in Cusco region, based on Perupetro lot figures. Smaller fields supply the rest.

How much gas and oil does Peru produce?

Peru produced 1,554 million cubic feet of gas a day and 36,930 barrels of oil a day in July 2026, according to Perupetro-based figures. Gas output rose 9.6% in a year, while oil fell 23%.

How long will Peru’s gas last?

Minem’s 2024 resources book counts 7.1 trillion cubic feet of proven reserves, a little over 13 years at current use. Perupetro estimates much more prospective gas, but it is not yet proven.

What happened to Camisea in March 2026?

An incident at kilometre 43 in Megantoni, Cusco, on 1 March stopped gas transport and Minem declared an emergency for 1 to 14 March, with rationing. Osinergmin later found the operator TGP breached its contract.

Does Peru export gas?

Yes, as LNG from the Pampa Melchorita plant. It loaded 34 cargoes in January to September 2026, down from 40, and South Korea took 46.1% of the volume.

How much of Peru’s electricity comes from gas?

Gas generated about 48% of Peru’s electricity in August 2026, and hydropower about 38%, according to Minem. Solar and wind together supplied about 10%.

Sources: Perupetro (production, July 2026, as compiled by the Peruvian Hydrocarbons Society on 6 August 2026; LNG exports, January to September 2026; prospective resources); Ministry of Energy and Mines, electricity generation in August 2026 (also its hydrocarbons resources book 2024 and Minister Guillermo Shinno, 17 August 2026); Osinergmin, Camisea emergency notice, March 2026 (also its audit findings, April 2026); National Elections Jury, plenary decision of 7 October 2026; PERÚ ENERGÍA conference, Cusco (reported 25 May 2026).