Project Profile
Location: Talchuano, Chile
Value: Undisclosed
Processing capacity: Up to a 5 million tpy market over a period of 8 years
Operations Start-up Year: 2019
The GNL Talacahuano FRSU project will be Chile’s 4th regasification facility and will be located at a port in the Biobio region. In March 2016, the Chilean LNG import terminal company of Eos Investment Group – successfully submitted the Environmental Impact Study (EIS) for the offshore LNG import facility in Talchuano, Chile. The EIS was submitted to the regional Environmental Services Department. GNL has also received approval from the Chilean Department of the Navy’s regulatory office to help progress the project’s Maritime Concession Application to civilian authorities for final approval.
Alongside its Chilean Partner, CRI Investments SpA, Eon is developing the floating storage and regasification unit (FSRU), which will help provide fuel to Chile’s south-central region. Although south-central Chile has a significant natural gas pipeline and distribution network, it has reportedly been idled ever since Argentinean gas supply failed in 2004.
Almost 2 million tpy of untapped LNG demand is thought to exist around this infrastructure. once gas is reintroduced, Eos’ FSRU project would ramp up to a 5 million tpy market over a period of 8 years. Eos and its partners are reportedly holding talks with various potential offtakers, and have already reached agreements for 30% of the terminal’s overall capacity.
In addition to this, Eos has reached an agreement with infrastructure private equity firm, Stonepeak Infrastructure Partners. Under the agreement, Stonepeak will provide up to US$150 million of equity capital. In return, it will receive an equity stake in the project upon the project’s financial close. Eos is also holding SPA negotiations with Magnolia LNG – an investment target of Stonepeak – to provide 1 million tpy of LNG from its Lake Charles facility for delivery to the Chilean market via the terminal. Furthermore, an agreement has been concluded between Eos and an undisclosed international energy company. The unnamed company will act as both the strategic advisor for the terminal, and as an additional supplier of LNG.
The sponsors of the project claim that financial close is expected to occur in 2Q17, whilst operations are expected to commence in early 2019.
Joint Operators:
CRI Investments SpA (Private company)
Eon