The 2.5 million tonnes per annum (mtpa) terminal in Quintero Bay - approximately 110 kilometers northwest of Santiago - will have the capacity to meet up to 40% of the country's demand for natural gas. BG is a 40% shareholder in the regasification terminal, which is targeted to commence operation in the second quarter of 2009.
BG executed the 21-year LNG sale and purchase agreement to supply Chile with 1.7 mtpa of LNG through the terminal, to be supplied from the company's global LNG portfolio.
Rick Waddell, BG Executive Vice President, South America, said:
"Chile has a vibrant and growing economy which needs new gas supplies and we are ideally placed to work with our Chilean partners to meet that demand.
"The Quintero LNG project expands our South American operations and provides a long-term counter-seasonal market for our LNG portfolio. We are delighted to have finalized our investment and participation in Chile's first LNG import terminal. "
GNL Quintero SA (GNLQ) is the project company that will own and operate the terminal. In addition to BG's 40% shareholding, the other partners in the project are the Chilean national oil and gas company ENAP (20%), power company Endesa Chile (20%) and gas distribution company Metrogas (20%).
GNLQ also entered into agreements for the provision of regasification services at the terminal and for the onward sale of the terminal's regasified natural gas.
The US$775 million engineering, procurement and construction contracts have been awarded to CB&I.
BG Group plc is a global natural gas business. Active on five continents in 25 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power.
In the USA, BG LNG Services, LLC (BGLS) holds, until 2028, 100% of the capacity rights at North America's largest operating LNG import terminal, Lake Charles in Louisiana. BGLS also holds supply and regasification rights for 17 years at the Elba Island LNG terminal near Savannah, Ga.
BG has long-term purchase agreements in place with Equatorial Guinea LNG Train 1, S.A.; Nigeria LNG Ltd; Egyptian LNG Train 2; and with Atlantic LNG Train 4.
In the Middle East, BG is a shareholder in Egyptian LNG Trains 1 and 2 and a third LNG train is under consideration. There is scope at the development site for up to six trains.
BG Group is also the major project shareholder in two proposed regasification terminals, the Dragon LNG import project in Milford Haven, Wales and the Brindisi LNG import project in Brindisi, Italy.
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