Canadian pension fund acquires Chile LNG terminal stake

By
Tuesday, April 11, 2017

The Ontario Municipal Employees Retirement System (OMERS) signed an agreement to acquire a 34.6% stake in GNL Quintero (GNLQ), the larger of Chile's two LNG regasification terminals.

Remaining shareholders in GNLQ comprise Spain-based Enagás and Chilean national oil company Enap, OMERS said Tuesday in a statement.

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The investment represents the first foray into South America for Borealis Infrastructure, the infrastructure investment manager of OMERS.

Since the terminal entered operation in 2009, "it has served nine gas-fired power plants, two refineries, 450 industries, over 700,000 commercial and residential customers, and 7,000 commercial vehicles," OMERS said.

"As well, the terminal has dispatched over 40,000 LNG tanker trucks to serve customers that are not connected to the pipeline grid, through satellite regasification units that are located up to 1,000km away from the facility."

BACKGROUND

Meanwhile, GNLQ is seeking EPC bids for a US$300mn expansion project at the terminal.

The expansion entails increasing regasification capacity to 20Mm3/d from 15Mm3/d currently, and the installation of a third LNG tank with a storage capacity of 150,000M3.

Amid growing gas demand in central Chile, "GNLQ ... has been operating at one of the highest utilization factors and availability rates in the global industry," OMERS said.

The statement did not specify how much OMERS agreed to pay for the GNLQ stake, nor what the final ownership percentages of Enagás and Enap would be.

OMERS did say, however, that as part of the transaction, it has agreed to grant Enagás a 12-month call option for 5% of its shares.