OilVoice - BG Group Delivers First LNG Cargo to Chile

BG Group Delivers First LNG Cargo to Chile

Monday, July 13, 2009

BG Group today announced the delivery of the first-ever cargo of Liquefied Natural Gas (LNG) to Chile. The cargo, on board the Methane Jane Elizabeth from BG Group's global LNG fleet, will be used to commission the Quintero LNG regasification terminal, owned by GNL Quintero S.A, in which BG Group holds a 40% interest.

The Quintero regasification terminal, which is located approximately 110 kilometres northwest of Santiago, will be the first onshore LNG import terminal to begin operations in the southern hemisphere. BG Group has delivered the first LNG cargo just two years after signing a 21-year LNG Sales and Purchase Agreement to supply the terminal with up to 1.7 million tonnes per annum of LNG. Once fully operational, the terminal will have the capacity to meet up to 40% of Chile's current demand for natural gas.

Martin Houston, Executive Vice President and Managing Director for Americas and Global LNG at BG Group, said:
"The import terminal at Quintero will provide a vital new source of energy supply for Chile. BG Group is proud to be the major shareholder in the terminal and the partner of choice for LNG supply.

"Quintero LNG further extends BG Group's long-term commitment to South America. It also brings added flexibility to our global LNG business with the addition of new, counter-seasonal regasification capacity in an attractive and fast-growing market."

BG Group is a 40% shareholder - 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 S.A. (20%).

GNL Quintero
GNL Quintero S.A. is the company charged with building, operating and owning the 2.5 mtpa import terminal in Quintero Bay, 110 kilometres from Santiago. The regasification plant, when fully completed in 2010, will include two 160 000 cubic metre LNG storage tanks.