Paper: EPC contract signing delay stymies Quintero LNG project

The pending EPC contract signing with US-based Chicago Bridge & Iron could be behind the delay of the LNG project in central Chile's region V Quintero bay, newspaper El Diario Financiero reported. GNL Chile is coordinating the offtaker pool of the planned US$350mn LNG re-gasification terminal and comprises Spanish power company Endesa (NYSE: ELE), local gas distributor Metrogas, state oil company Enap and UK gas company BG (NYSE: BG). Higher-than-expected investment costs could be delaying the signing of the EPC contract - due end-2006 - and in turn the inking of LNG purchase contracts, the paper said. The companies had announced plans to fast-track partial operations to begin in late 2008 preceding a full 2009 startup. Last week, however, Chilean press - citing a report from the country's energy regulator CNE - reported the LNG would begin arriving in April 2009. Chicago Bridge & Iron did not immediately respond to a BNamericas request for comment regarding the press report.