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Chile Betting on Future US LNG Exports? Offshore Regas Terminal Project Awarded to Golar LNG

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July 6, 2012

Image: GasAtacama

(Dow Jones) Northern Chile power producer GasAtacama SA awarded Golar LNG Ltd (GLNG, GOL.OS) the construction and operation of an offshore liquefied natural gas regasification terminal, the company said.

In about a decade, Chile needs to nearly double its current installed energy capacity to 30,000 megawatts to keep up with projected demand.

GasAtacama, which feeds the northern SING grid, home to many of the country’s copper mining companies, seeks to lower generation costs through its own LNG purchases abroad.

The offshore terminal will be able to receive five million daily cubic meters of gas, which allows a generation capacity of up to 1,000 megawatts, the company said in a statement.

GasAtacama is looking to sign new long-term power supply contracts with mining companies, GasAtacama’s Chief Executive Rudolf Araneda said in a press conference, El Mercurio newspaper reported.

Copper production processes are electricity-intensive and the mining industry is the biggest consumer on the SING grid.

The company, meanwhile, is negotiating a long-term contract with three U.S. shale gas providers to buy gas for the terminal, Diario Financiero reported.

– Graciela Ibanez, Dow Jones Newswires

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