The pipeline, dubbed Gasoducto del Pacifico Lateral Charrua, would transport gas from the existing Gasoducto del Pacifico pipeline to the future Campanario thermoelectric generation project in southern Chile's Region VIII.
The Gasoducto del Pacifico Lateral Charrua pipeline will start at km 143 of the main pipeline in the community of Pemuco and stretch 27.5km south to the Campanario project in the Cabrero community.
The 16-inch diameter pipeline will require US$10mn in investments, according to the environmental impact study (EIS) filed by the company last year.
Latin American private equity fund Southern Cross reached an agreement to buy 100% of the Campanario project from local gas distributor Innergy through subsidiary Energia Andes del Sur, BNamericas previously reported.
Southern Cross will buy two 60MW, FT8 SWIFTPAC gas turbine units from US firm Pratt & Whitney Power Systems for the first stage of the Campanario project.
The units, to be installed by local engineering firm Errazuriz Asociados e Ingenieros near the Charrua substation, will be able to run on both diesel and natural gas.
The project is designed to generate 260MW with open cycle turbines burning gas and/or diesel and could be transformed into a combined cycle generator with 360MW capacity by adding a 120MW steam turbine.
The project's total US$190mn investment will be financed by Southern Cross' own funds as well as structured loans from Chilean bank Banco Bci.
Gasoducto del Pacifico transports gas to Chile from Argentina's Neuquen basin.
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