GNL Mejillones, the equally owned joint venture company of French utility major Suez Energy International and Chilean copper mining firm Codelco, has obtained the environmental permit for its liquefied natural gas terminal project in Mejillones, northern Chile.
According to Suez Energy, the permit was unanimously approved by all involved regulatory bodies, allowing GNL Mejillones (GNLM) to immediately start the preparatory fieldwork.
Construction of the jetty and the on-shore liquefied natural gas (LNG) regasification terminal is planned to start in the next few months and the first gas will be delivered in late-2009 or early-2010.
The LNG regasification terminal will have a send-out capacity of 5.5 million cubic meters of gas per day, sufficient to produce 1,100MW of electricity. For LNG storage, the project will use a conventional LNG floating storage unit (FSU), which will remain permanently moored to the jetty. GNLM earlier selected Suez’s FSU offer, presented by Suez Global LNG.
The mining companies involved in the project from the beginning have each signed a gas sale and purchase contract with GNLM to cover their electricity generation needs for a duration of three years starting from 2010. To mirror these contracts, GNLM has signed an LNG supply agreement with Suez for the same volume and duration.
Dirk Beeuwsaert, CEO of Suez Energy International, said: This innovative fast-track LNG scheme is crucial for Chilean energy security and ensures a supply of natural gas for our power generation assets in the country.