Identifier
Created
Classification
Origin
06SANTIAGO431
2006-03-02 13:19:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Santiago
Cable title:
CHILE: BRITISH GAS WINS BID TO BUILD
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHSG #0431 0611319 ZNR UUUUU ZZH R 021319Z MAR 06 FM AMEMBASSY SANTIAGO TO RUEHC/SECSTATE WASHDC 8577 INFO RUEHAC/AMEMBASSY ASUNCION 2500 RUEHBR/AMEMBASSY BRASILIA 3099 RUEHBU/AMEMBASSY BUENOS AIRES 2932 RUEHLP/AMEMBASSY LA PAZ MAR LIMA 4475 RUEHLO/AMEMBASSY LONDON 0135 RUEHMN/AMEMBASSY MONTEVIDEO 3213 RUEHQT/AMEMBASSY QUITO 1536 RUCPDOC/DEPT OF COMMERCE WASHDC RHMCSUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS SANTIAGO 000431
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG PREL CI
SUBJECT: CHILE: BRITISH GAS WINS BID TO BUILD
RE-GASIFICATION PLANT
REF: 05 SANTIAGO 00631
UNCLAS SANTIAGO 000431
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG PREL CI
SUBJECT: CHILE: BRITISH GAS WINS BID TO BUILD
RE-GASIFICATION PLANT
REF: 05 SANTIAGO 00631
1. (U) Summary: British Gas (BG) beat out other
international competitors to secure a USD 400 million
contract to build a liquid natural gas (LNG) facility on
Chile's central coast at Quintero. Chile's state-owned oil
company ENAP hopes this mega-project will reduce Chile's
dependence on Argentine sources of natural gas and ensure
sufficient electricity production for future needs. End
Summary.
2. (U) On February 23, ENAP announced that BG had won a
preliminary contract to build a port terminal and
re-gasification plant on Chile's central coast (Region V).
BG's proposal beat out bids from the French/Belgium Suez
Energy Company, British Petroleum, Australia's Woodside
Energy and Spain's Repsol-YPF firm. ENAP officials stated
that BG was chosen for its expertise in natural gas and
experience in South America. BG has a controlling interest
in Brazil's largest gas distributor, Comgas. It also owns 45
percent of Metrogas in Argentina, and significant natural gas
reserves in Bolivia.
3. (U) The Chilean facility is scheduled to begin operations
in 2009. The re-gasification plant will have a maximum
capacity of 15 million cubic meters per day, as well as
storage facilities. It will begin operations at a rate of 5
million cubic meters per day, which would satisfy 25 percent
of Chile's projected natural gas demand. This amount of LNG
will be sufficient to supply electrical power generation
plants throughout Chile.
4. (SBU) Argentina has historically been Chile's largest
supplier of natural gas, with commercial agreements dating
back more than a decade. However, insufficient production in
the last two years has forced Argentine suppliers to reduce
exports to Chile in order to satisfy domestic Argentine
demand. When the cuts occurred for a second year in a row
(reftel),the Lagos administration ordered ENAP to explore
ways to diversify Chile's gas supplies. With the new port
facilities, Chile will be able to receive gas from a variety
of international sources, reducing its dependence on
Argentina.
KELLY
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ENRG PREL CI
SUBJECT: CHILE: BRITISH GAS WINS BID TO BUILD
RE-GASIFICATION PLANT
REF: 05 SANTIAGO 00631
1. (U) Summary: British Gas (BG) beat out other
international competitors to secure a USD 400 million
contract to build a liquid natural gas (LNG) facility on
Chile's central coast at Quintero. Chile's state-owned oil
company ENAP hopes this mega-project will reduce Chile's
dependence on Argentine sources of natural gas and ensure
sufficient electricity production for future needs. End
Summary.
2. (U) On February 23, ENAP announced that BG had won a
preliminary contract to build a port terminal and
re-gasification plant on Chile's central coast (Region V).
BG's proposal beat out bids from the French/Belgium Suez
Energy Company, British Petroleum, Australia's Woodside
Energy and Spain's Repsol-YPF firm. ENAP officials stated
that BG was chosen for its expertise in natural gas and
experience in South America. BG has a controlling interest
in Brazil's largest gas distributor, Comgas. It also owns 45
percent of Metrogas in Argentina, and significant natural gas
reserves in Bolivia.
3. (U) The Chilean facility is scheduled to begin operations
in 2009. The re-gasification plant will have a maximum
capacity of 15 million cubic meters per day, as well as
storage facilities. It will begin operations at a rate of 5
million cubic meters per day, which would satisfy 25 percent
of Chile's projected natural gas demand. This amount of LNG
will be sufficient to supply electrical power generation
plants throughout Chile.
4. (SBU) Argentina has historically been Chile's largest
supplier of natural gas, with commercial agreements dating
back more than a decade. However, insufficient production in
the last two years has forced Argentine suppliers to reduce
exports to Chile in order to satisfy domestic Argentine
demand. When the cuts occurred for a second year in a row
(reftel),the Lagos administration ordered ENAP to explore
ways to diversify Chile's gas supplies. With the new port
facilities, Chile will be able to receive gas from a variety
of international sources, reducing its dependence on
Argentina.
KELLY