GDF SUEZ to Build LNG Storage Tank in Chile

GDF SUEZ is to further consolidate its position in Chile through the construction of an on-shore LNG storage tank in the North of Chile.

The tank is part of the GNL Mejillones terminal, which GDF SUEZ jointly owns with Codelco, the world’s main copper producer.

By such investment GDF SUEZ will also increase its stake in the LNG company to 63%, in line with its long-term strategic vision for Chile.

The tank, which will be completed by 2013, has a capacity of 175,000 m3 and will be built to the highest security and seismic standards. After an international tender, the tank construction was awarded to Tecnicas Reunidas which completed the first phase of the terminal. Project supervision will be undertaken by Tractebel Engineering, an affiliate of the GDF SUEZ Group.

“This project is part of our effort to reduce the country’s dependency on fossil fuels, contributing positively to the environment and diversifying its energy supply. This was recently recognised by the ‘most significant development’ award that GNL Mejillones received from CIGRE, a Chilean Energy committee”, commented Dirk Beeuwsaert, Executive Vice President GDF SUEZ, in charge of Energy Europe & International.

Since April of this year, GNL Mejillones has delivered over two million cubic meters per day of natural gas to the generation companies E-CL and Gas Atacama to convert LNG into electricity under contracts with four major mining companies located in the north of the country as well as direct gas sales to a portfolio of industrial clients. Electricity produced with the LNG currently represents approximately 25% of the electricity market in the North of Chile.

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Source: GDF SUEZ, November 9, 2010