Chile: Suez, GNL Mejillones ink supply deal

The GNL Mejillones JV formed by Chiles state copper company Codelco and multinational energy company Suez Energy International (SEI) has signed an LNG supply contract with Suez for the LNG plant being built in Mejillones port. According to the deal, Suez will supply the JV with enough LNG to generate 400MW of thermo capacity from 2010-12. GNL Mejillones is investing nearly US$500mn in the project that will give Chiles northern grid (SING) greater security in the wake of natural gas restrictions from Argentina. The plant, fast-tracked for completion by the end of 2009, will use a temporary regasification tanker and initially will be able to degasify 5.5Mm3/d of natural gas. Three-year contracts have already been signed with miners Codelco, Escondida, Collahuasi and El Abra to supply gas to power 450MW of capacity.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: January 25, 2008