The Camisea project consists of several Natural Gas fields located in the Ucayali basin of southeastern Peru, principally in Block 88 along the Camisea River. Analysts estimated that Block 88 contains 11 Tcf of proven plus probable natural gas reserves and 482 million barrels of associated natural gas liquids (NGLs). An international consortium led by Hunt Oil has developed the Upstream portion of Camisea, with production beginning in August 2004. The initial production capacity at Camisea was 450 million cubic feet per day (Mmcf/d) of natural gas and 34,000 bbl/d of NGL. However, output capacity is expected to increase once drilling begins (May 2006) on Camiseas Block 56, adjacent to Block 88. Transportadora de Gas del Peru (TGP), a consortium led by Techint, constructed and now operates parallel natural gas and NGL pipelines that carry Camisea production to Lima and to a fractionation plant in Paracas. In March 2006, the Camisea Pipeline ruptured for the fifth time since start-up in August 2004. The latest rupture occurred a week after E-Tech International issued a report warning of additional leaks and spills due to quality construction issues of the pipeline. A Peruvian regulatory committee fined TGP $915,000 for the previous four spills. The Camisea project provides natural gas for domestic consumption; however, natural gas production from the Camisea project will eventually exceed domestic demand, so project sponsors would like to export any excess production. Hunt Oil leads the Peru LNG consortium, which broke ground in January 2006 on a liquefied natural gas (LNG) export terminal at Pampa Melchorita, 105 miles south of Lima. The Peru LNG facility will have an operating capacity of 4.2 million tons per year, with most of the production destined for the Western United States and Mexico. Peru LNG plans to build a pipeline to feed natural gas from existing natural gas pipelines to the LNG export terminal. Construction of the pipeline is expected to start in the latter half of 2006 and to be completed as early as 2008, with first exports leaving the terminal in 2009. Peru LNG has also held discussions with ENAP, Chiles state-owned oil company, about exporting LNG to that country. Even though the countries share a land border, trading natural gas via LNG could be more cost-effective than the construction of a natural gas pipeline. Both countries already have plans to build the necessary LNG infrastructure.