Chile watchdog approves US$650mn LNG project

Chile’s environmental watchdog SEA has approved the 540MW Andes LNG thermoelectric project in the Atacama region, which will require an estimated investment of US$650mn.

The Sea issued its decision after announcing last week it would make a decision this Thursday.

The project involves three different parts: construction of a regasification terminal to transform LNG back into natural gas, a gas pipeline to transport the natural gas from the terminal to the generator, and a 540MW generator that uses the fuel to produce energy.

The environmental evaluation process for the Andes LNG plant began in July 2016 and has been crystallized in a 1670-page consolidated environmental report after many different additions and corrections were requested by the authorities over the years.

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

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In related news, the Turin, Italy-based solar producer Sonnedix secured a US$99mn loan to finance its 171MW Atacama Solar project.

The loan will be provided by the Latin American development bank CAF, in conjunction with BICE and Banco Security, according to a company release.

Atacama Solar will be located in the Atacama region in northern Chile, which is considered to have ideal conditions for solar generation. The project was approved by the SEA in June 2011.

According to company figures, Sonnedix currently has 400MW in solar projects under development, in construction and in operation in Chile.