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Prices issue delays BG and Chile LNG supply contract
Petroleumworld
CARACAS
Petroleumworld.com 09 26 06
The final signing of a liquefied natural gas supply contract between UK's BG and he Chilean state energy company ENAP is been delay due to a price issue, Chilean daily La Tercera reported Monday.The companies disagree on the short-term price of LNG for 2008 and 2009, with BG estimating a cost of $9 per million British Thermal Units, and Enap and others estimating prices between below $7 and $8.
Enap in February awarded BG the project to build and supply the $380 million-$400 million gas plant, scheduled to begin regasifying LNG from the fourth quarter of 2008.
In a public appearance Monday, Enap Chief Executive Enrique Davila refused to comment on the story, while Mining and Energy Minister Karen Poniachik didn't speak to the press, Dow Jones reported.
ENAP is representing a group of gas distribiutors, such as Gasvalpo, a unit of Australian Gas Light Co. and Sempra Energy unit Energas, Empresa Nacional de Electricidad de Chile , a unit of Spanish power utility Endesa SA, and gas distributor Metrogas.
To reduce dependence on unreliable Argentine natural gas - Chile's sole source of the fuel - Chile is seeking to diversify its sources of energy.
Petroleumworld 25 09 06
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