GasAtacama has US LNG Providers Lined Up

Posted by Eric Haun
Thursday, April 10, 2014
Photo: GasAtacama

GasAtacama, energy provider to metal producers in Chile's Atacama desert, has lined up eight potential U.S. natural gas suppliers for a proposed import terminal on its Pacific Coast, but uncertainty about energy demand has delayed deals, CEO Rudolf Araneda told Reuters on Thursday.

GasAtacama plans to build a $350 million offshore liquefied natural gas (LNG) import terminal that would take shipments of the fuel to help create 500 megawatts of electricity for power-hungry miners in the mineral-rich north.

But construction plans for the Floating Storage Regasification Unit (FSRU) are in limbo as miners in the world No.1 copper producer dither over their expansion plans in the face of lower copper prices, higher costs and local opposition, creating a domino effect for power providers' investment plans.

"We've negotiated with various producers, but we can only close a deal when we've closed the sale of energy, you have to do it back-to-back," Araneda told Reuters on the sidelines of the CRU/CESCO copper conference. "But miners don't have their expansion plans approved, they're in a wait and see (mode). Uncertainty is the problem."

The uncertainty surrounding miners' power demand should be dispelled next year, Araneda said. "Decisions are being pushed back to 2015," he added.

If all planned mining expansions materialize, massive deposits in the Atacama desert will require between 1,000 and 2,000 megawatts, according to Araneda.

The Andean country is increasingly eyeing imported LNG as a quick, substantial and environmentally-acceptable solution to that looming energy crunch.

The push towards LNG has been further bolstered by a surge in shale gas production in the United States that is transforming the global energy market. Once a regular LNG importer, the United States is now set to export significant volumes of LNG across the globe by the end of the decade, including to Chile.

Chile already imports LNG, which is supercooled into a liquid for shipping, mostly from Equatorial Guinea and Trinidad and Tobago, to two regasification terminals. But experts say the gas has potential to be exploited further. Trading firms have already signed tentative deals to export gas to Chile from a proposed export plant in Louisiana, which is expected online in 2018.

Araneda said GasAtacama had eight potential providers in the United States, underlining that a free-trade agreement between the two countries made it attractive to ship LNG to Chile despite its relative small size.

GasAtacama told Reuters in 2012 that it saw 20-year contracts for 500 megawatts of power yielding roughly $4 billion.

When asked on Thursday if a specific client could be on the brink of approving a new project or expansion that would require power, Araneda said yes, but declined to name the miner.

In the meantime, GasAtacama is holding off on its FSRU project, which was awarded to liquefied natural gas shipping company Golar LNG Ltd.

"The FSRU has been contracted to the world's best provider, we have all the permits... but the pre-condition is that we succeed in obtaining 500 megawatts in contracts," Araneda said, stressing that the construction time of a FSRU is shorter than a mining expansion.

So far, the FSRU's price tag hasn't crept up, Araneda added.

Electricity generator Endesa Chile last month announced it would assume full ownership of Gas Atacama by buying the remaining 50 percent stake owned by private equity fund Southern Cross for $309 million in cash.

(Reporting by Alexandra Ulmer; Editing by Alden Bentley and Edward McAllister)

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Carnival to Add Nine Ships to Cruise Fleet

Carnival Corporation enters into strategic partnerships to add nine cruise ships to its fleet over a four-year period starting in 2019; shipbuilders Fincantieri

'Run to Remember' by USCG Foundation

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of Coast Guard members and their families, announced this year’s

IMTRA Announces Exclusive Sola-Cure Distributor Partnership

IMTRA announced today through its exclusive North American distributorship of Sola-Cure shades — its line of customizable, high-quality and comprehensive solutions

Offshore

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

JIT Transit Slots Reduced at Panama Canal

The Panama Canal has experienced an unusual increase in the number of vessels awaiting transit during the past few weeks. Several measures have been implemented to reduce the backlog,

Swiber Gains $405.6 mi Contracts

Business momentum is fast picking up at Swiber Holdings Limited despite the downturn in the oil and gas industry as the Group clinches a total of US$405.6 million for a series of contracts,

Energy

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

Huge Heavy Lift Project Wraps up in Colombia

Mammoet concludes multi-year heavy lifting and transport project for refinery in Cartagena, Colombia   Mammoet USA informs it has completed a heavy lifting and

ABB, Samsung SDI JV to Develop Microgrids Globally

ABB and Samsung SDI have signed a Memorandum of Understanding to promote microgrid solutions globally. The two companies will establish a global commercial alliance

LNG

Big Spending on Liquefaction Terminals

Capital expenditure (Capex) on global liquefied natural gas (LNG) facilities is expected to total $259 billion over the forecast period 2015-2019, according to

Studies Show U.S. Offshore’s Untapped Potential

While short-term news emanating from the global energy sector was universally negative in the waning months of 2014 as the price per barrel continued to plummet below $60,

ABS Updates Guidance on LNG Bunkering

ABS has updated its guidance on LNG Bunkering in North America to support the transport sector's increasingly rapid transition to the use of cleaner fuels. The

News

Carnival to Add Nine Ships to Cruise Fleet

Carnival Corporation enters into strategic partnerships to add nine cruise ships to its fleet over a four-year period starting in 2019; shipbuilders Fincantieri

Coast Guard Academy Cadet to Receive Fulbright Scholarship

Stephen Horvath, a first class cadet at the U.S. Coast Guard Academy, was recently granted a two-year Fulbright Scholarship to study renewable energy technologies

Ecochlor Presents BWTS Case Study at CMA

Ballast water treatment technology developer Ecochlor Inc. presented a project case study yesterday at CMA Shipping 2015 in Stamford, Conn. The case study covered

Offshore Energy

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

Swiber Gains $405.6 mi Contracts

Business momentum is fast picking up at Swiber Holdings Limited despite the downturn in the oil and gas industry as the Group clinches a total of US$405.6 million for a series of contracts,

Rosneft Cancels Rig Contract

Russian oil firm Rosneft has cancelled a contract for a two-and-a-half year rig contract with Northern Offshore and Seadrill's North Atlantic Drilling Ltd, the Norwegian offshore driller said.

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2285 sec (4 req/sec)