Enap, Gasco plan pipeline to supply Puerto Natales

By
Monday, December 18, 2006

Chile's state oil company Enap and local gas distributor Gasco plan to construct a US$22mn pipeline in Region XII, Enap said in a statement.

The 118km pipeline will stretch from the Tranquilo natural gas field to Pecket, where it will connect with the Posesión-Cabo Negro pipeline to supply Puerto Natales.

Puerto Natales has a daily natural gas consumption of some 100,000m3.

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Enap has invested some US$1.3mn in improving Tranquilo's production infrastructure. Field production is in its natural stage of decline.

GAS SUPPLY CONTRACT

Enap and Gasco also have renewed the current gas supply contract corresponding to Punta Arenas, Puerto Natales and Porvenir, which would have lapsed December 31, the statement said.

The agreement uses a similar methodology to calculate rates, meaning the price of gas in Magallanes will not change in 2007.