Suez unit eyes LNG terminal in Chile

July 7, 2006
Suez Energy International has presented to the Chilean Mines and Energy Ministry a $700 million plan to build an onshore LNG regasification terminal in the northern part of the country.

Doris Leblond
OGJ Correspondent

PARIS, July 7 -- Suez Energy International has presented to the Chilean Mines and Energy Ministry a $700 million plan to build an onshore LNG regasification terminal in the northern part of the country. First deliveries could take place as early as July 2008, spokeswoman Katja Damman told OGJ.

The plan also proposes construction of two coal and petroeum coke-fired electrical power generators, each with a capacity of 200 Mw. The first unit could come on stream in 2011.

Suez hopes to secure energy markets in northern Chile, where supplies have been destabilized by reduced gas deliveries from Argentina.

Gas tariffs have dropped as a result of the government's switching contracts from dollars to pesos.

LNG will be supplied under Suez contracts, possibly with Yemen or Trinidad and Tobago, Damman said. She said the LNG carrier for this project will also serve as storage.

Approval and construction of the gasification unit should take about 18 months. Capacities weren't immediately available.