BG Group to supply gas to Chile LNG terminal

By OGJ editors
HOUSTON, June 4 -- BG Group has signed an agreement to supply Chile's first LNG regasification terminal, a 2.5 million tonne/year facility to be built in Quintero Bay, about 110 km northwest of Santiago. The terminal is slated to begin operating in second quarter 2009.

The terminal could meet as much as 40% of Chile's gas demand, organizers said. GNL Quintero SA (GNLQ) will own and operate the terminal. BG is a 40% shareholder in GNLQ. Other partners, each with a 20% stake, are Chilean state company ENAP, power company Endesa Chile, and gas distributor Metrogas.

BG executed the 21-year LNG sale and purchase agreement to supply Chile with 1.7 million tonnes/year of LNG through the terminal, to be supplied from the company's global LNG portfolio.

ENAP said the LNG project will cost $400 million and, once commissioned, will supply gas to the country at competitive prices. It said the Quintero LNG complex will comprise a quay about 1,300 m long, unloading arms, and two storage tanks of around 160,000 cu m capacity each, in addition to the regasification station.

GNLQ also announced it let engineering, procurement, and construction contracts valued at $775 million to CB&I of The Woodlands, Tex.

Related Articles

EIA: LNG shows potential as a railroad fuel

04/14/2014 Continued growth in US natural gas production and substantially lower gas prices compared with crude oil prices lead to strong potential for fuelin...

OGJ Newsletter


International news for oil and gas professionals

Clean Energy delivers Hawaii’s first LNG shipment


Clean Energy Fuels Corp. has supplied Hawaii Gas with 7,100 gal of LNG—the first shipment of the fuel in Hawaii state history.

Agreements advance plans for FSRU off Puerto Rico

04/09/2014 Excelerate Energy, Houston, and the Puerto Rico Electric Power Authority (PREPA) have executed agreements for the procurement, construction, and op...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected