GasAtacama seeks contract negotiations

Chilean gas transporter and power generator GasAtacama is seeking to renegotiate power supply contracts with mining sector clients to reflect higher power production costs in the light of Argentine natural gas shortages, newspaper El Diario reported GasAtacama CEO Rudolf Araneda as saying. "We want to be the principal strategic partners of mining companies with a long-term perspective," he was quoted as saying. "What has to be done is to sit down at the table, present the difficulties we are facing and [decide] how we can resolve them." Generators' costs have spiked sharply as gas shortages have meant they have either had to use alternative fuels or buy power on the spot market to meet contractual commitments. GasAtacama has a 780MW gas-fired plant at Mejillones in northern Chile's SING grid. Principal mining clients include Escondida, Collahuasi and El Tesoro, and clients have been receptive to the idea of renegotiating contracts, according to Araneda. Last week Manlio Alessi, country manager of Belgian energy company Tractebel, said that the Electroandina and Edelnor generators Tractebel owns in the SING are also seeking to renegotiate mining sector contracts.