EIG-Fluxys partnership in key LNG infrastructure supporting Chile decarbonisation

KUALA LUMPUR, March 28 -- Washington-headquartered EIG, a leading institutional investor to the global energy and infrastructure sectors, and Fluxys, a leading energy infrastructure company, have announced joint acquisition of an 80 per cent equity stake in GNL Quintero S.A. (Quintero), the largest liquefied natural gas (LNG) regasification terminal in Chile, from Enagas Chile SpA and affiliates of OMERS Infrastructure. Terms of the transaction were not disclosed.

According to a statement, Quintero is a key energy infrastructure business supporting Chile’s decarbonisation strategy with a bridging fuel that allows for the reconciliation of economic growth with the uptake of renewables and the phasing out of coal.

Operational since 2009, Quintero is the largest terminal for receiving and unloading LNG in Chile, as well as for its storage and regasification capacities. The terminal benefits from its strategic location in Quintero Bay, supplying a diversified base of customers in central Chile across residential, commercial, industrial, transportation and power generation sectors.

The terminal owns 75 per cent of the country´s LNG regasification capacity and in 2021, 67 per cent of the total natural gas imports (both LNG and pipeline imports) arrived in Chile through this strategic asset.

The acquisition builds on EIG’s presence in the Chilean market, where the firm owns Cerro Dominador, a groundbreaking solar complex that combines a 100MW photovoltaic (PV) plant with a 110MW concentrated solar power (CSP) plant.

The PV plant has been operational since 2017 and the CSP plant was successfully synchronised with Chile’s electricity grid in April 2021. EIG also is a partner in AME S.p.A, a Chile-based project developer and independent power producer.

EIG Chairman and CEO, R. Blair Thomas said: “We are pleased to be partnering again with Fluxys, a world-class operational partner, to help Quintero support Chile’s energy needs and transition goals with reliable energy.

“Quintero’s strong presence in natural gas infrastructure serves as an attractive launching point to expand its presence in related and adjacent sectors, including storage, truck loading and regasification, as well as to develop production capacity for green hydrogen, where Quintero has significant potential to be a domestic leader in the nascent industry.”

Fluxys Managing Director and CEO, Pascal De Buck said: “With 3 LNG terminals in Europe, our ambition to invest outside Europe and to become the transporter of new energy carriers, Quintero is a perfect fit with our strategy for growth in view of the low carbon future.”

Citigroup Global Markets Inc acted as financial adviser to EIG and Fluxys in connection with the transaction. White & Case LLP served as EIG’s legal adviser and Linklaters LLP served as Fluxys’ legal adviser.

For more information, visit www.eigpartners.com.

-- BERNAMA