Gas Natural Fenosa (GNF) has signed a long-term LNG supply contract with BHP Billiton for BHP’s Escondida copper mine project in Chile.
Under the terms of the agreement, GNF will supply fuel from the Sabine Pass LNG terminal, located in Louisiana, US to the Chilean LNG terminal at Mejillones. GNF will supply the LNG as of 2016, when BHP’s Kelar plant, currently under construction, is due to be completed.
A statement from GNF said that power generated by the station would power growing demand from the Escondida mine and other BHP operations in the Atacama Desert.
The LNG contract represents a move by BHP away from coal-fired generation and an attempt to reduce average annual emissions of 1.5 million t of CO2.
In recent months, GNF has signed major supply contracts in India, South Korea and Japan.
Edited from various sources by Ted Monroe
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