Chilean Empresa Nacional del Petróleo (ENAP) signed a 12-year deal for the natural gas supply and reserved regasification capacity at the Quintero LNG terminal with the utility Colbún.
Under the agreement that comes into force in January 2019 and has a value of US$400 million, gas supplies from the terminal will enable continuous operation of the Nehuenco complex.
The two companies have previously signed supply contracts for the years 2015 and 2016 to 2018.
Speaking of the agreement, Thomas Keller, Colbún CEO said, “This agreement allows us to have direct access to the international LNG market, which increases our options to operate Nehuenco and makes them more flexible.”
The contract will allow the utility to contract shipments delivered to ENAP or to directly contract third party deliveries to the Quintero LNG terminal that is currently undergoing expansion that will increase the terminal’s capacity to 20 MMm3/d.
Shareholders in the GNL Quintero are Enagás Chile with a 40 percent stake, Terminal de Valparaíso, a joint venture between Enagás Chile (51 percent), and Oman Oil Company (49 percent) with a 40 percent stake and ENAP holding a 20 percent stake.