Eos advances Chilean offshore LNG regasification project

June 8, 2016
Houston-based Eos Investment Group LLC’s Chilean LNG import terminal company GNL Talcahuano SPA successfully submitted its environmental impact study to the regional environmental services department for its floating storage and regasification unit offshore Talcahuano, Chile.

Houston-based Eos Investment Group LLC’s Chilean LNG import terminal company GNL Talcahuano SPA successfully submitted its environmental impact study to the regional environmental services department for its floating storage and regasification unit offshore Talcahuano, Chile.

Eos and its Chilean partner CRI Investments SPA are developing the FSRU project to serve Chile’s south-central region, which has a natural gas pipeline and distribution network last used to deliver supplies from Argentina in 2004. The companies estimate that close to 2 million tonnes/year of LNG demand lies on or near the gas grid infrastructure.

Spanish utility Gas Natural Fenosa recently committed to spending more than $1.1 billion to develop gas markets in south-central Chile and elsewhere in the country. The Chilean government’s Energy Ministry estimates that the four-region demand from the Eos LNG import project could reach 5 million tpy within 8 years of startup.

Eos signed an agreement with Stonepeak Infrastructure Partners to provide as much as $150 million of equity capital in return for a stake in the project on financial close. In conjunction with the Stonepeak agreement, Eos is advancing negotiations with Stonepeak investment-target Magnolia LNG to supply 1 million tpy from its Lake Charles, La., plant. Eos says it has finalized an agreement with a large international energy company for additional investment and LNG supplies.

Eos named Moffatt & Nichol project engineer. Shanghai-based Wison Offshore & Marine won an exclusive period in which to tender a proposal for the terminal’s FSRU.

GNL Talcahuano also received approval from the Chilean Department of the Navy to advance the project’s maritime concession application to civilian authorities for final approval.

Eos expects financial close in second-quarter 2017 and operations early 2019.