Colbun, Enap sign natural gas supply deal

Chilean generator Colbún has signed a natural gas supply deal worth US$90mn with state oil company Enap, the former announced in a press release. Enap will supply the fuel to Colbun's Nehuenco thermo complex from its share of LNG imported by the GNL Quintero terminal. Both facilities are located in Chile's central region V. The deal covers an initial 120-day period beginning on January 1, 2011, although the contract can be extended to last until the end of next year. The contract allows Colbun to diversify its fuel sources, the firm said in the statement, reducing its dependency on hydroelectric capacity. Chile's government recently reported that levels at the country's dams are 45% lower than in a normal year. The UK's BG Group (LSE: BG) has a 40% stake in GNL Quintero, while Chilean generator Endesa Chile, Enap and local gas distributor Metrogas each have 20%.