Financial Closure Reached for Octopus LNG to Power Project in Chile
The offshore LNG regasification terminal and a linked gas-fired combined-cycle project in Chile, collectively known as Octopus, has reached financial closure. K&M was engaged by one of the equity investors to provide technical and commercial due diligence, including review of all major project agreements, and an analysis of the Chilean electricity market, and technical design and feasibility. Located in Concepción Bay, the Octopus floating LNG terminal and regasification plant is expected to come online in 2019 with a capacity of 423 million cubic feet a day. The regassified LNG will be used as fuel for the El Campesino 600 MW gas-fired combined cycle power plant in the Biobio region. The sponsors are Andes Mining Company, EDF and Cheniere. The lenders provided $850 million in debt financing to complete the US$1.2 billion investment required to by the project.
Source: Power Finance & Risk, January 5, 2017