GAS NATURAL FENOSA has signed a long-term contract with the Chilean company Minera Escondida (operated by BHP Billiton) for the supply of liquefied natural gas (LNG) from 2016. The fuel will be delivered to the LNG terminal in Mejillones, in northern Chile.

The Spanish multinational, which was awarded the contract from a tender process, will now be supplying LNG to Chile for the first time in what is also the company’s first operation in this country. Under the agreement, GAS NATURAL FENOSA will supply the fuel from its global portfolio. From mid-2016, this will include LNG from the Sabine Pass liquefaction plant (Louisiana, USA) and the process will make use of the future Panama Canal expansion to provide the corresponding logistical optimisation.

Delivery of LNG to the terminal in Mejillones will enable the Kelar electricity plant - currently under construction - to begin operating. The energy generated by this plant will meet the growing demand from Minera Escondida and the operations run by BHP Billiton in the Atacama Desert. Kelar will replace coal-based power generation and will avoid the emission of up to 1.5 million tonnes of CO2 per year.

About GAS NATURAL FENOSA, a global LNG operator

As part of its international expansion plan, the supply contract for liquefied natural gas to Chile strengthens GAS NATURAL FENOSA as a benchmark operator with a portfolio of almost 30 bcm and consolidates its position in the Pacific basin. The company has recently signed important supply contracts in India, South Korea and Japan.
GAS NATURAL FENOSA has a diversified, competitive and flexible gas portfolio, and its 2013-2015 Strategic Plan places special emphasis on harnessing the opportunities offered by the Asian and Latin American markets. International gas sales will account for 35% of the total in 2015, compared with 28% in 2012.

About Escondida

Minera Escondida is located 170 kilometres to the south-east of Antofagasta at an altitude of 3,100 metres above sea level. The company is owned by BHP Billiton (57.5%), Rio Tinto (30%), JECO Corporation (10%) and JECO 2 (2.5%). BHP Billiton is the operator of Minera Escondida.

See the site of Mejillones LNG Terminal