Extractive industry companies,particularly those operating in areas of high biodiversityvalue, on indigenous lands, or in close proximity tocommunities, face operational and reputational risks relatedto their environmental and social performance, and can besubject to intense scrutiny from stakeholders. PERULiquefied Natural Gas (PLNG), the first liquefied naturalgas plant in South America, is an example of a high-profileproject facing multiple environmental and social risks.Launched in 2007, the $3.8 billion project is one of thelargest industrial projects in Peru. PLNG is considered oneof Peru's key resources, and it is a core component ofthe Peruvian government's energy strategy. Over thecourse of six years, PLNG has shown a strong commitment tomanaging environmental and social risks throughout all thephases of the project. The project is currently in theoperations and maintenance phase, having completedconstruction in 2010. Liquefied natural gas pipelineprojects are often associated with a number of environmentaland social risks that must be addressed by a comprehensiverisk management system. Some of the issues faced by the PLNGproject included: 1) several communities and otherstakeholders living in or using the project footprint; 2)health and safety risks due to hiring large numbers of newworkers; 2) potential for safety incidents and accidentsfrom vehicle use; 3) the presence of ecologically sensitiveareas, particularly the Andean wetlands; and 5) the presenceof 35 rural Andean communities along the pipeline. Thislessons of experience publication documents experience andlessons learned throughout the lifecycle of the project thatare transferable to other projects.
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