Projects

LNG to the Eight RegionConstruction approved of Loading Yard for carrying LNG to the Eighth Region

A transcendental step was taken by the shareholders of GNL Quintero and GNL Chile with the signing of all the contracts for the construction of the Loading Yard for Tanker Trucks on land of GNL Quintero. This is clearly a great achievement by ENAP’s management which has worked hard to achieve its approval because of the importance of LNG reaching the Eighth Region for the Bío Bío refinery and for industrial and residential consumption in this important part of the country.

The good news was announced at a press conference at which the former minister of energy and chairman of the board of ENAP, Ricardo Raineri, accompanied by the chief executives of ENAP, Rodrigo Azócar, of METROGAS, Eduardo Morandé, of GNL Quintero, Antonio Bacigalupo, of GNL Chile, Eric Ahumada, the country manager de BG Group, Diego Hollweck, and the generation manager of Endesa Chile, Claudio Iglesis.

Ricardo Raineri said that “we are definitely going to take natural gas to the Eighth Region, specifically the Bío Bío refinery from the second half of January, and then to other customers. This makes the construction of what we have called the virtual gas pipeline viable, which is going to carry liquefied natural gas using thirty road tankers a day, trucks that are specially designed to transport LNG in safe conditions.

The arrival of LNG in the south of Chile is very important because this country project will provide energy security, not only for the central zone as is occurring with GNL Quintero. This is, without doubt, one of the principal concerns of the government and we have to carry out this project given the importance it has in supporting the Region’s development”.

Raineri said that the total of both projects amounts to US$45 million, of which US$ 18 million relates to the tanker loading yard, which will have an LNG loading capacity of 1,250 cubic meters a day. This project will be possible thanks to the joint efforts of ENAP and the private-sector companies.

He recalled that the construction of truck loading yard will go hand in hand with the start-up of the project being developed by ENAP, with an investment of US$ 27.5 million, which includes the re-gasification satellite plant in the town of Pemuco, whose construction was approved by the regional environmental authority on May 24. He explained that once LNG arrives from Quintero, it will be re-gasified and injected into existing gas pipelines to be sent to the different points of consumption, including the Bio Bío refinery.

In another area, Ricardo Raineri said that ENAP and METROGAS are working on the construction of a logistics company which will be responsible for carrying the LNG in road tankers to the Region.

“We always said that we were going to take LNG to the Eighth Region”

Following his address, the minister of energy offered the floor to the chief executive of ENAP, Rodrigo Azócar, who said that “the step we are taking is especially satisfactory because on October 22 last year we inaugurated the GNL Quintero complex and today we are reaching a very important landmark which is related to energy security, the competitiveness of the Region and the certainty of having natural gas.

ENAP has always said that natural gas was going to be not only for the Metropolitan Region but also for the Eighth Region, and we are complying”.

ENAP’s chef executive added that “it will also enable us to reduce the operating costs of the Bio Bío refinery, which should be functioning normally in the next few days. Bio Bío refinery is today producing diesel and fuel oil, and is about to start producing gasoline. Very soon, together with former Minister Raineri, we expect to give good news in this area”.

The chief executive of METROGAS, Eduardo Morandé, assured that “as founding partners in GNL Quintero, this moment is transcendental because the arrival of LNG in the Eighth Region will permit expanding the service to consumers. It is an important step to have an energy matrix with a friendly fuel like natural gas”.

The environmental impact declaration for constructing the loading yard was approved last September 24 and the project now has the corporate agreements and commercial contracts signed, together with those for the engineering, supply of materials and equipment and the construction, to be financed by a long-term loan granted by the banks BBVA, Banesto, Banco Santander, BG, BNP Paribas, Credit Agricole, Intesa Sanpaolo, Mizuho, West LB, Bank of Tokyo-Mitsubishi, DekaBank and DnB NOR Bank.

All the partners in GNL Quintero (BG Group (40%), ENAP (20%), Endesa Chile (20%) and Metrogas (20%)) are proud and happy with this important achievement.