Argentina-Chile pipeline work gets started

Jan. 5, 1998
Argentina - To - Chile Gas Line[63,435 bytes] Gasoducto Atacama Cia. Ltda. has begun laying a 300 MMcfd natural gas pipeline from Argentina to Chile. GasAtacama is a joint venture of four companies, including major shareholders CMS Energy Corp., Detroit, and Chilean power generator Endesa. The JV let contract to a combine of Bonatti SpA, Parma, Italy, and Argentina's Comercial del Plata Construcciones SA (CPC) to build the 414 km Chilean portion of the line.
Gasoducto Atacama Cia. Ltda. has begun laying a 300 MMcfd natural gas pipeline from Argentina to Chile.

GasAtacama is a joint venture of four companies, including major shareholders CMS Energy Corp., Detroit, and Chilean power generator Endesa. The JV let contract to a combine of Bonatti SpA, Parma, Italy, and Argentina's Comercial del Plata Construcciones SA (CPC) to build the 414 km Chilean portion of the line.

The 914-km, 20-in. pipeline will transport gas from onshore gas fields in Argentina's Neuquen basin to an electric power plant the partners are building at Mejillones, Chile (see map). Construction of the Chilean leg started in November 1997 and is slated for completion by November 1998, says Bonatti.

Total cost of the pipeline and plant, scheduled for completion early in 1999, will be about $750 million.

The pipeline

The pipeline route includes a variety of challenging terrains.

The line will cross the Andes at Paso de Jama, reaching a maximum altitude of about 5,000 m. It also will cross two rivers-Rio Vilama and Rio San Pedro. In Chile, it will traverse the Atacama desert.

Because of the difficulty involved in the more-mountainous Argentinian section, GasAtacama has divided that portion of the project into three subsections, which will be awarded in two contracts. Bids on those sections-including one by Bonatti and CPC-are being evaluated.

The project has received approved from the Chilean government but is still awaiting permission from Argentina.

The power project

GasAtacama has secured contracts for 160 MMcfd of gas. Of that total, 127 MMcfd will be shipped to the 710-MW combined-cycle plant the group is building at Mejillones.

The group is composed of CMS and Endesa 40% each and Argentine companies Pluspetrol Energy 16% and Astra Capsa 4%. They have signed contracts to supply 60 MW of power to nearby mines and industrial users.

The Mejillones plant is expected to come on stream in 1999.

A portion of the 127 MMcfd of gas shipped to Mejillones will be transported further south to a 350-MW plant Endesa is building at Taltal, Chile. The 160-mile Gasoducto Taltal extension is expected to cost $30 million.

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