The petroleum industry has become an important source of income for Andean Countries. Peru and Ecuador has extensive natural reserves in oil and gas. The development has created an impact in the region. To take advantage of these natural resources, which often are located in remote environmental and socially sensitive areas. Transmission pipelines have been constructed to transport these resources from the Amazon basin to the coastal regions. The effects have impacted many sectors both locally and internationally. This paper addresses the socio-economic and environmental impacts that pipeline development has brought to the region through an observation of two recent transmission pipeline projects in Latin America: The Camisea Project in Peru and the Oeloducto de Crudos Pesados (OCP) in Ecuador. The analysis focused on five key areas: industrial, economical, environmental, social and legal aspects. The findings of this project show that despite of the important economical benefits these projects have provided to the Andean Region, other sectors of the region have experienced negative impacts. The negative social impacts and potential environmental risks have created a growing negative perception with the public and international environmental agencies. This perception is related to the benefits and expectations that the petroleum industry has in the regions. The difficulties appear to root themselves the impacts the high technology has had on local economies and the lack of infrastructure in education and training and enforcement of regulations to allow more local satisfaction. The goals of this paper were to; identify the barriers, stakeholders and driving forces that affect these areas and through comparison, and with the use a literature review methodology of international practices identify options that could improve the regional situation. This paper summarize a list of key areas where improvements in these countries could reduce risks and offer strategic solutions that can overcome barriers and promote a sustainable development of pipeline projects in the Andean Region.