LIMA, Jan 19 (Reuters) - The transportation of liquefied petroleum gas (LPG) through Peru’s main pipeline was halted on Tuesday after a leak was detected, the company that operates the duct said, raising the possibility of supply shortages that could fan inflation.
The company, Transportadora de Gas del Peru SA (TgP), said in a statement that it was notifying distributors and that the pipeline had not been damaged.
The 560-kilometer-pipeline supplies fuel for domestic electrical generation and exports. The duct runs through jungle and mountainous terrain to Peru’s coast.
Last year, repairs on the pipeline forced Peru to import LPG and helped stoke inflation that had already been accelerating because of the currency’s depreciation.
The central bank has hiked the benchmark interest rate three times in the past five months as the annual inflation rate has risen to a four-year high.
Plans to build a new LPG pipeline has faced delays. The government said last year that it would likely open bidding on a LGP pipeline contract toward the end of 2015. (Reporting By Teresa Cespedes; Editing by Bernard Orr)