Colbún conducts studies to build own LNG regasification terminal

abarrelfullabarrelfull wrote on 25 Nov 2011 12:48
Tags: chile lng

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The projected low gas prices as a result of new discoveries has prompted the initiative of the generator.

The high prices now being paid for Liquefied Natural Gas (LNG) led to the power company Colbun, to conduct studies to build a regasification terminal in the country.

This was stated yesterday by the president of the generator, Bernardo Matte, saying that for a time the company are running a series of tests to evaluate the possibility of carrying out this investment.

Matte said that after the gas discoveries that are happening around the world, and the decision of the owners Quintero terminals and keep closed Mejillones regasification operation in Colbún is considering two alternatives:

  • to build a terminal or
  • participate in bidding for contracts for gas, as announced by the affiliate marketer Quintero GNL Chile.

"This idea was born because the gas that Chile has been buying is priced very high and makes it impractical for electricity generation. That will change and is changing globally, due to this new technology, prices will go down, "said Matte.

Regarding the timing of the study, the president said by June of next year the generator should make a decision on the construction of the terminal. This would take about two years enabling it to start operating in 2014.

He added that the characteristics that would respond to the design initiative FRSU (floating units storage and regasification), a model very similar to what today is the complex of Bahia Blanca in Argentina.

In operation, this would be open access, allowing any company to bring their own vessels and then pay for gas re-gasification.

Matte said that this type of terminals required a smaller investment than it needs the Quintero LNG. Belonging to BG, ENAP, Endesa and Metrogas this terminal’s investment was about U.S. $ 1,000 million.

As for the location, Colbún explained that they are considering two or three places for the complex

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