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EIS submitted for Chilean FSRU

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GNL Talcahuano SpA – the Chilean LNG import terminal company of Eos Investment Group – has successfully submitted the Environmental Impact Study (EIS) for its offshore LNG import facility in Talchuano, Chile. The EIS was submitted to the regional Environmental Services Department. GNL has also received approval from the Chilean Department of the Navy’s regulatory office to help progress the project’s Maritime Concession Application to civilian authorities for final approval.

Alongside its Chilean Partner, CRI Investments SpA, Eon is developing a floating storage and regasification unit (FSRU), which will help provide fuel to Chile’s south-central region. Although south-central Chile has a significant natural gas pipeline and distribution network, it has reportedly been idled ever since Argentinean gas supply failed in 2004.

Almost 2 million tpy of untapped LNG demand is thought to exist around this infrastructure. Spain’s Gas Natural Fenosa has already announced its commitment to investing upwards of US$1.1 billion over the coming years in order to help develop south-central Chilean markets, as well other markets within the nation. Once gas is reintroduced, Eos’ FSRU project would ramp up to a 5 million tpy market over a period of 8 years, according to Chile’s Energy Ministry. Eos and its partners are reportedly holding talks with various potential offtakers, and have already reached agreements for 30% of the terminal’s overall capacity.

Colin Williams, the President and Managing Partner of Eos, said: “The EIS admission and the Chilean Naval approval are significant milestones in the development of the GNL Talcahuano’s project. With our Chilean partners at CRI, we have taken an important step towards providing a secure, efficient and environmentally friendly energy solution to meet the needs of both regional consumers, but also for the larger national energy requirement. The reintroduction of reliable energy will drive investment and industrial growth in central Chile.”

Moffat & Nichol will serve as the Project Owner’s Engineer, whilst Wison Offshore and Marine has been given an exclusive period for the proposal to provide the FSRU.

In addition to this, Eos has reached an agreement with infrastructure private equity firm, Stonepeak Infrastructure Partners. Under the agreement, Stonepeak will provide up to US$150 million of equity capital. In return, it will receive an equity stake in the project upon the project’s financial close. Eos is also holding SPA negotiations with Magnolia LNG – an investment target of Stonepeak – to provide 1 million tpy of LNG from its Lake Charles facility for delivery to the Chilean market via the terminal.

Furthermore, an agreement has been concluded between Eos and an undisclosed international energy company. The unnamed company will act as both the strategic advisor for the terminal, and as an additional supplier of LNG.

Eos President Williams said: “With the strong support from Stonepeak and our strategic investor, GNL Talcahuano is fully-funded through to its commercial operations date.

“Given the current supply and demand dynamics in the global LNG market, we appear well-positioned to take advantage of a long-term buyer’s market in LNG, sourcing from both the US Gulf Coast and Australia, while exploiting global options.

The sponsors of the project claim that financial close is expected to occur in 2Q17, whilst operations are expected to commence in early 2019.

Edited from press release by David Rowlands

Read the article online at: https://www.lngindustry.com/regasification/03062016/eis-submitted-for-chilean-fsru-2542/


 

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