BG Group finalises agreement to meet natural gas demand in Chile

BG Group today announced that it has signed an agreement to supply Chile’s first Liquefied Natural Gas (LNG) import terminal.

The 2.5 million tonnes per annum (mtpa) terminal in Quintero Bay - approximately 110 kilometres northwest of Santiago - will have the capacity to meet up to 40% of the country’s demand for natural gas. BG is a 40% shareholder in the regasification terminal which is targeted to commence operation in the second quarter of 2009.

BG executed the 21-year LNG sale and purchase agreement to supply Chile with 1.7 mtpa of LNG through the terminal, to be supplied from the company’s global LNG portfolio.

Rick Waddell, BG Executive Vice President, South Americasaid:

"Chile has a vibrant and growing economy which needs new gas supplies and we are ideally placed to work with our Chilean partners to meet that demand.

“The Quintero LNG project expands our South American operations and provides a long-term counter-seasonal market for our LNG portfolio. We are delighted to have finalised our investment and participation in Chile’s first LNG import terminal. ”