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Jan 15 (Reuters) - The U.S. State Department has approved the potential sale to Peru of $1.5 billion in equipment and services to support the country's efforts to shift its main naval base in the city of Callao, the Pentagon said in a statement on Thursday, so it can expand a neighboring seaport.

The Peruvian government plans to relocate its naval base at Callao, on the coast just west of the capital Lima, a few kilometers away.

This move will allow for the expansion of Peru's main commercial port in Callao, which is a competitor to the Chinese-built Chancay mega-port located 80 km (50 miles) north of Lima.

In a statement regarding the proposal, the U.S. Defense Security Cooperation Agency said the "proposed sale will contribute to the foreign policy objectives of the United States by helping to improve the security of an important partner that promotes political stability, peace, and economic progress in South America."

The agency confirmed that it had issued the necessary proposal to inform Congress about this potential sale.

The principal contractors will be chosen at a later date from a list of approved vendors, likely through a competitive process, the Pentagon said.

The port in Callao is Peru's main commercial terminal and is currently operated separately by Dutch port operator APM Terminals on the north side and DP World Callao on the south.

The Callao port in November began offering new direct shipping routes from China and South Korea. Analysts have said Callao is likely to compete with the Chancay mega-port for Asian cargo as infrastructure investments accelerate along Peru's Pacific coast.

The port in Chancay, built by Chinese company Cosco Shipping Ports, began operations in November 2024. The port accommodates large vessels and offers direct voyages between South America and Asia.

China is Peru's primary trading partner.

Peru's defense ministry did not immediately respond to a request for comment sent outside regular business hours.

(Reporting by Ryan Patrick Jones in Toronto and Marco Aquino in Lima; Editing by Christian Schmollinger)

((brendan.oboyle@thomsonreuters.com))