BG Group to supply gas to Chile LNG terminal
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.
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.