LNG Regasification Terminal in Chile Expected to be Completed by End of Year

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Researched by Industrial Info Resources (Sugar Land, Texas)--GNL Mejillones (GNLM), the joint venture between GEF Suez SA (EPA:GSZ) subsidiary Suez Energy International (Paris, France) and Chilean copper giant Codelco (Santiago), is carrying out the construction of a regasification terminal in the north of Chile. The new facility will provide necessary gas for the electric suppliers in the region.

The LNG reception and regasification terminal will have the capacity to send out 5.5 million cubic meters of gas per day, enough to produce 1,100 megawatts of electricity. On January 15, 2008, Chilean construction company Belfi (Santiago) began the erection of the GNLM regasification pier with a total investment value of $100 million. This pier will allow Chile to receive gas delivered ships from different countries like Trinidad and Tobago, Qatar and Yemen. In the first stage the unit will be a floating storage and regasification unit.

Tecnicas Reunidas (Madrid, Spain) was awarded the contract for the construction of the regasification plant, which requires an investment of $300 million. This project includes the construction of an eight-kilometer pipeline that will allow connection to the Atacama and Norandino gas lines, allowing the gas to be transmitted to Edelnor SA (Santigo), Electroandina SA (Santiago) and GasAtacama SA (Santiago). The pipeline construction will be done by GNLM, and the first natural-gas delivery is expected to take place in the first quarter of 2010.

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