Duro Fulguera to build Chile's third LNG terminal

Spanish group Duro Felguera won a US$175mn turnkey contract to build an LNG import terminal off the coast of Chile.

Located in Concepción Bay off Chile's Biobío region (VIII), the Penco-Lirquén terminal will include a floating storage and regasification unit (FSRU) with throughput capacity of 15Mm3/d, and is expected to be complete in June 2018.

Local firm Biobíogenera is developing the project with US-based Cheniere.

The terminal will supply the 640MW El Campesino combined-cycle gas turbine project, which Biobíogenera is developing with French utility EDF.

Both the LNG terminal and the power plant are awaiting environmental approval.

El Campesino is required to supply local power distributors with 3,800GWh/y of electricity starting in January 2019, under a long-term power purchase agreement awarded in a supply tender at the end of 2014.

The subsidiary in charge of the power plant, Central El Campesino, in July secured a 20-year LNG supply contract with Cheniere, which owns a 50% stake in Penco-Lirquén.

Cheniere will supply Central El Campesino with approximately 600,000t/y of LNG from the Sabine Pass LNG terminal in Louisiana, according to a June statement from Cheniere.

Endesa opens satellite regasification plant

The Penco-Lirquén news follows the official opening by Endesa Chile of a satellite LNG regasification plant in the city of Talca, Maule region (VII).

The plant will process gas transported by truck from the existing Quintero LNG import terminal in Valparaíso region (V), Endesa said in a statement, and is meant to increase the availability of gas in the zone for industrial and residential use.

Gas will be distributed via a pipeline network owned by local gas distributor Energas, a subsidiary of the larger GasValpo.

CEO Valter Moro said Endesa plans to open similar plants in the coming months in Los Andes and Temuco, as well as a plant to serve Coquimbo and La Serena in Coquimbo region (IV).

For more information on LNG projects in Latin America, download BNamericas' latest LNG Intelligence Series report.