UK-based gas group BG has launched a review process that could see it reduce its stake in the Quintero LNG terminal in central Chile to 20% from the current 40%, country manager Diego Hollweck said Friday.
"Nothing is close to be closed yet and it is difficult at this stage when it may end -- that will depend on market interest," the executive said. BG owns 40% of GNL Quintero, the company that operates the terminal on a
tolling basis. Its partners are Chile's state oil firm ENAP, the country's power generator Endesa Chile and gas distributor Metrogas.
The review is part of a global BG initiative to assess the value of assets around the world.
"It may be that it is worth more than we think it is and we can get a better return for shareholders by selling it," Hollweck said, adding that the BG has no issues with the two-year-old terminal. Nor would a sale affect BG's LNG supplies to Chile.
BG also sells LNG under long-term contract to GNL Chile, a consortium formed by ENAP, Endesa and Metrogas.
The terminal, which began operations in 2009, has capacity to process 10 million cubic meters/day of gas.
Late last year, the GNL Chile consortium announced a tender to find new customers for the terminal, which could lead to capacity being expanded to 15 million cu m/day.
Chile's gas imports have risen sharply in recent years to meet a shortage of hydroelectric supplies in the power market, pushing the terminals to close to maximum capacity.
A number of power companies, including Colbun, GasAtacama and MPX, have expressed interest in developing their own terminals in Chile.
