Page 13 - LatAmOil Week 13 2022

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EIG, Fluxys eye 80% stake in GNL Quintero

EIG Energy Partners (US) and Fluxys (Belgium)
announced on March 28 that they were teaming
up to acquire an 80% stake in GNL Quintero, a
Chilean LNG import terminal
In a joint statement, the two companies said
they had arranged to buy the stake from Ena-
gas Chile, a subsidiary of Enagas (Spain), and
affiliates of OMERS Infrastructure (Canada).
They did not say exactly how much equity
they expected to acquire from Enagas Chile or
OMERS Infrastructure, which own 45.4% and
34.6% stakes in GNL Quintero respectively. Nor
did they reveal the financial terms of the deal.
However, they did note that the transaction
was likely to close in the second half of this year.

Chilean foothold
They also said both companies hoped to expand
their operations in Chile as a result of the deal. GNL Quintero is Chile’s largest LNG regasification terminal (Photo: GNL Quintero)
EIG, the statement reported, already has a
presence in the South American country. It is R. Blair Thomas, the chairman and CEO of
the owner of Cerro Dominador, a solar com- EIG, said the deal was in line with his compa-
plex that includes a 100-MW photovoltaic (PV) ny’s objectives. “We are thrilled by the oppor-
plant that came online in 2017 and a 110-MW tunity to invest in Quintero, a company that
concentrated solar power (CSP) plant that was aligns perfectly with our focus on strategic,
connected to Chile’s transmission grid in 2021. high-quality infrastructure that is critical to the
Additionally, it is a partner in AME SpA, a Chil- region it serves and yields attractive, contracted
ean independent power producer (IPP) and cash flows,” he commented. “We are pleased to
project developer that is involved in both con- be partnering again with Fluxys, a world-class
ventional electricity generation and hydrogen operational partner, to help Quintero support
production. AME owns both Generadora Met- Chile’s energy needs and transition goals with
ropolitana, the country’s fifth-largest electricity reliable energy. Quintero’s strong presence in
producer, and HIF Global, which is involved in natural gas infrastructure serves as an attrac-
both hydrogen and e-fuels projects. tive launching point to expand its presence in
Meanwhile, Fluxys sees GNL Quintero as a related and adjacent sectors, including storage,
“forward-looking investment creating a foot- truck loading and regasification, as well as to
hold in another country in Latin America where develop production capacity for green hydro-
the energy transition stands high on the govern- gen, where Quintero has significant potential
ment agenda,” the two companies said in their to be a domestic leader in the nascent industry.”
joint statement. Chile aims to use its ample solar Meanwhile, Pascal De Buck, Fluxys’ manag-
and wind potential to become the world’s cheap- ing director and CEO, said that investment in
est producer of green hydrogen, the statement GNL Quintero would build on his company’s
said, and the Belgian Hydrogen Import Coali- experience in the LNG sector and support its
tion, together with Fluxys, has determined that push to play a role in the handling of new forms
it is both feasible and economical to establish a of fuel and energy. “With three LNG termi-
supply chain for green fuels between Chile and nals in Europe, our ambition to invest outside
Europe. Europe and to become the transporter of new
energy carriers, Quintero is a perfect fit with
Path to green hydrogen our strategy for growth in view of the low-car-
The LNG terminal is already playing a role in bon future,” he stated. “We want to deploy and
green hydrogen projects. expand our industrial expertise worldwide and
Last year, Enagas Chile and Acciona Energía, are excited to partner with EIG as [a] leading
a subsidiary of Spain’s Acciona, announced global energy infrastructure investor already
plans for the joint construction of a hydrolysis intensively involved in energy transition projects
facility at the LNG terminal at a cost of $30mn. in Chile. Our partnership in [GNL] Quintero
They said the hydrolysis plant would use elec- brings Fluxys closer to hydrogen developments
tricity generated from renewable sources to gen- in Chile and supports the import of hydrogen
erate green hydrogen at the initial rate of about in Belgium. We are looking forward to collab-
500 tonnes per year (tpy) and that the power orating and developing new opportunities with
unit would have a generating capacity of 10 MW. Quintero’s management and workforce.”

Week 13 31•March•2022 www. NEWSBASE .com P13