Chile LNG terminal project approved by committee of ministers

Chile’s committee of ministers authorized the construction and operation of what could become the country’s third LNG import terminal: GNL Penco-Lirquén.

First submitted for review in 2014 and approved in 2019, the project had been in limbo amid legal challenges. The original estimated required investment was US$165mn.

Planned for the districts of Penco and Talcahuano in Biobío region by title holder GM Energy, GNL Penco-Lirquén involves a maritime terminal for a floating storage regasification unit and supporting pipeline infrastructure. 

Estimated LNG storage capacity is 170,000m3, or around 105Mm3 (million cubic meters) of gas, according to the original environmental impact study.

The committee of ministers is headed by the environment ministry and also has representatives of the ministries of economy, health, agriculture, energy and mining. The committee rules on challenges concerning environmental licensing decisions.

Chile, which imports almost all the gas it consumes, has two existing LNG terminals. In Valparaíso region, GNL Quintero has capacity to store 334,000m3 of LNG, the equivalent of around 207Mm3 of natural gas, while GNL Mejillones, in Antofagasta region, can store 187,000m3 of LNG, the equivalent of around 116Mm3 of natural gas.

Chile invested in the LNG infrastructure after a successful period of energy integration with Argentina sputtered and halted in 2007, when the latter country closed gas export taps amid domestic economic turmoil.