Chilean generator and gas distributor GasAtacama will submit an EIA for the construction of the country’s third LNG regasification facility near the town of Mejillones in northern region II.
“[We expect] to deliver the EIA within the next week. There is no fixed time period for how long it will take to have it approved. We are predicting a date of 2016 to start operations, to give us sufficient construction time,” said Rudolf Araneda, the firm’s managing director.
“Investments in the project are large. We require the use of an LNG carrier, that’s in the range of USD 200 million-250 million, and an FRSU of between USD 250 million-300 million. Upfront costs we expect therefore to be in the range of USD 500 million.”
According to the executive, Chile’s maritime authorities have already approved the company’s plans to install a floating storage and regasification unit (FRSU) 2km off the coast in Mejillones bay, connecting to the firm’s 780MW Central Térmica Atacama thermo plant through an underwater pipeline.
Shipments into the FRSU will be used to meet power demand from expanding mining operations on the SING grid. Demand on the SING is expected to double over the course of the next 10 years. GasAtacama hopes to begin supplying the new mining facilities as they come online from 2016 onwards.
According to Araneda the company is currently in discussions with gas providers from both Europe and the US in the hope of sorting an agreement before the end of May.