Chile ready to issue ruling on US$650mn LNG plant

After a protracted environmental evaluation process that began in July 2016, Chile’s environmental watchdog SEA plans to meet and issue a ruling on the Andes LNG project, a US$650mn LNG-powered thermo plant, next Thursday.

The project, which has faced many different hurdles over the years and has been crystallized in a 1670-page consolidated environmental report, involves the construction of three different sections: a regasification terminal to transform LNG back into natural gas, a 540MW generator that uses natural gas as fuel to produce energy, and a gas pipeline to connect the terminal and the generator.

Andes LNG will be built in the Atacama region, close to Engie’s US$1.1bn Infraestructura Energética Mejillones coal plant, which went into operation this week. Andes is owned by Mitsui Chile, Royal Dutch Shell and Wärtsilä Chile.

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In related news, the SEA received a new filing from Fotovoltaica Norte Grande 4, owner of the US$57mn Guanaco Solar project, requesting the approval of a new version of the project that increases its projected capacity from 50MW to 77MW. The company cites the fact that technological advances have allowed it to increase capacity without substantially changing the makeup of the project.

Also, the watchdog approved a request by Centella Transmisión to cancel the evaluation process for its US$140mn Nueva Pan de Azúcar-Punta Sierra-Centella transmission project. The line is planned to connect the Nueva Pan de Azúcar substation in Coquimbo region with the small town of Salamanca in the same region, spanning some 250km.