Pioneer gas project in Latin America fails indigenous peoples

Huge revenues generated by the Camisea project in Peru's Amazon, but locals suffer from health epidemics and lack of clean water

Every year a group of experts called the South Peru Panel issues a report on the country's largest ever energy development which extracts natural gas and natural gas liquids from the Amazon and pipes them all the way across the Andes to Peru's Pacific coast. The conclusions of its latest report? "Very positive macroeconomic benefits" and "without precedent in Peru's modern economic history", but pathetic, if not disastrous, for the indigenous people living near where the gas is extracted.

The South Peru Panel was established in 2009 as a condition of a $458.6m (318m) loan by the Export-Import Bank of the United States to the Peru Liquified Natural Gas Project (Peru LNG), run by US company Hunt Oil, to build a 408 km pipeline, a gas liquefaction plant on the coast, and a marine terminal. The total cost is reported to have been almost $4bn - making it at the time the largest foreign direct investment in Peru's history, according to the Panel, and the first and to date only LNG export project in Latin America.