HOUSTON – GNL Talcahuano has submitted an environmental impact study to Chile’s regional Environmental Services Department to construct a floating regasification terminal in Talcahuano.
Parent company Eos Investment Group, LLC and its Chilean partner, CRI Investments are developing the FSRU terminal to serve Chile’s south-central region.
This region’s extensive natural gas pipeline and distribution network has been idled since gas supply from Argentina stopped in 2004.
Eos estimated about 2 MM tons per annum (MTPA) of untapped LNG demand on or near the existing gas grid infrastructure.
Recently, Spanish utility Gas Natural Fenosa announced it would commit more than $1.1 billion in the next few years to develop gas markets in south central Chile and elsewhere in the country.
The Chilean government’s Energy Ministry estimates that potentially gas demand from the EOS LNG import project could ramp up to a 5-MTPA market over an eight-year period once natural gas is re-introduced.
GNL Talcahuano also has the approval of the Chilean Department of the Navy’s regulatory office to advance the project’s Maritime Concession Application to the civilian authorities for final approval.
The company’s president Juan Ignacio Ugarte claims the design will deliver the world’s first “zero net emission” LNG import terminal, located far from the coastal populations.
Offshore FSRU terminal design specialist Moffatt & Nichol has been appointed the Project Owner’s Engineer.
Wison Offshore and Marine in Shanghai has been granted an exclusive period for a proposal to supply the FSRU.
EOS has signed an agreement with private equity firm Stonepeak Infrastructure Partners to provide up to $150 million of equity capital in return for a stake in the project upon financial closure.
In conjunction with this agreement, EOS is in talks with Stonepeak investment target Magnolia LNG to supply 1 MTPA of LNG from its Lake Charles facility in Louisiana for delivery through the terminal to the Chilean gas market.
More gas could be sourced from Australia.
Eos aims for a financial close for the project in 2Q 2017, with operations starting in early 2019.
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