Suez Energy International said that the power unit will be constructed as part of the Central Termoelectrica Andina (CTA) project in Mejillones, Chile.

Meanwhile, Suez Energy International and Antofagasta Minerals, a Chilean industrial group, have signed an agreement for the supply of up to 150MW of power for the new Esperanza mine starting in 2011.

This second unit will reportedly be identical to the first one, for which construction started in the fourth quarter of 2007 and will be connected to the Sistema Interconectado del Norte Grande grid network.

Suez noted that CTA’s environmental impact study has already been approved and that an engineering, procurement and construction contract has also been signed with the Spanish engineering company Cobra for both units of the CTA project.

Dirk Beeuwsaert, CEO of Suez Energy International, said: Taking into account the energy context of Chile, we think it is crucial to invest in different energy solutions. Apart from the coal stations we are constructing now, we will start in the coming months the construction of our LNG project in northern Chile, which will secure a reliable source of natural gas for the existing gas-fired plants.