Suez JV obtains approval for Chile LNG terminal

Feb. 20, 2008
GNL Mejillones, a 50-50 JV of Suez Energy International and copper firm Codelco, has obtained the environmental permit for its planned LNG regasification terminal in Mejillones in northern Chile.

By OGJ editors
HOUSTON, Feb. 20 -- GNL Mejillones (GNLM), a 50-50 joint venture of Suez Energy International and copper company Codelco, has obtained the environmental permit for its planned LNG regasification terminal in Mejillones in northern Chile. The terminal will have a planned annual send-out capacity of 5.5 million cu m of gas, sufficient to produce 1,100 Mw of electricity.

GNLM plans to start preparatory field work immediately and will begin construction of the jetty and onshore terminal within the next few months, Suez said.

First gas is expected to be delivered at yearend 2009 or early 2010.

For LNG storage, GNLM will use a conventional LNG carrier that will remain permanently moored to the jetty. Suez Global LNG will provide the floating storage unit (FSU). Onshore facilities will include pumps, compressors, vaporizers, and pipelines.

Mining companies BHPB-Escondida, Collahuasi, El Abra, and Codelco Norte have all signed gas purchase contracts with GNLM to cover electricity generation needs for 3 years, beginning in 2010. GNLM also signed an LNG supply agreement with Suez for identical volumes and duration.

The company expects to reach a decision by yearend on Phase 2, the construction of an onshore storage tank to replace the FSU.

Suez also is developing two units of 150 Mw thermal electric power stations in Northern Chile and holds 84.7% stake in the gas transportation company Gasoducto NorAndino.