Chile's Colbun Studying Developing LNG Gas Regasification Plant
November 10 2011 - 8:28AM
Dow Jones News
Chilean power generator Colbun SA (COLBUN.SN) is studying
developing a liquefied natural gas regasification plant as prices
for LNG are forecast to decline, a company spokesman said,
confirming a newspaper report.
Colbun, which has thermal generation and hydroelectric plants,
has seen its bottom line crimped because of a prolonged drought and
delays in starting up its Santa Maria coal-fired power plant.
"This idea came about because the gas Chile had been buying is
very expensive, making it unusable to generate electricity. That is
changing in the world because of new technologies, and prices are
going to drop," Colbun President Bernardo Matte said, according to
newspaper El Mercurio.
LNG has become an important part of Chile's energy matrix in
recent years with the Mejillones regasification terminal in the
country's north region and Quintero regasification plant in the
central region.
Chile developed LNG as an energy source during former President
Michelle Bachelet's term in an effort to diversify its energy mix
and increase security after Argentina started to sharply reduce
natural gas exports to its neighbor in 2004. A 2008 drought also
severely curtailed hydroelectric production in Chile, helping to
drive the development of LNG.
The GNL Mejillones regasification terminal, a joint-venture
between Chilean state copper mining company Corporacion Nacional
del Cobre, or Codelco, and France's GDF Suez SA (GSZ.FR), supplies
customers on the SING grid, which is home to the vast majority of
the nation's bustling copper mining industry
The Quintero plant is controlled by London-based BG Group PLC
(BRGYY, BG.LN) and state oil and gas company Empresa Nacional del
Petroleo, or Enap, and supplies energy to the nation's largest
power grid, the central SIC grid.
-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929;
anthony.esposito@dowjones.com
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