GDF SUEZ an important European energy player in Chile , GDF Suez
Release Date: 2009-10-12
GDF SUEZ significantly strengthened its positions in Chile pursuing the diversification of its production mix by signing USD 3 billion electric power supply contract and inaugurating the most important wind farm in ChileUSD 3 billion power supply contract:
GDF Suez has just won a bid worth USD 3 billion to supply 2,000 GWh/year of electric power to subsidiaries of EMEL, a Chilean power company. The contract was signed by Edelnor, jointly owned with Codelco, and will run from 2012 to 2026.
The energy derive mainly from liquefied natural gas (LNG) regasified at the GNL Mejillones terminal, also jointly owned (50/50) by GDF SUEZ and Codelco. This terminal is expected to come on-line at the beginning of 2010. It will supply approximately 20% of the total needs of the northern part of Chile (SING - Sistema Interconectado Norte Grande) which serves mostly industrial companies. The use of LNG to generate power will lead to significant reductions in emissions, and will boost Chile’s aspirations to join the OECD (Organisation for Economic Cooperation and Development).
The largest wind farm in Chile:
GDF SUEZ will also be inaugurating the largest wind farm in Chile - Monte Redondo - in the presence of Mr. Andres Velasco, Minister of Finance, Mr. Marcelo Tokman, Minister of Energy, and Gerard Mestrallet, Chairman and CEO of GDF SUEZ, on October 9th 2009.
The Monte Redondo wind farm is yet another step towards the diversification of GDF SUEZ’s energy portfolio in Chile, helping to stabilise energy prices by reducing dependence on fossil fuels. This project is a strategic move in the Sistema Interconectado Central (SIC), the biggest power network in the country. 100 GWh/year from the Monte Redondo wind farm was sold at an auction organised by the local distribution company CGE. The contract runs for 14 years and starts in January 2010. The project will reduce CO² emissions, enabling it to register for carbon credits under the Kyoto Protocol’s Clean Development Mechanism (CDM).
Work began at the start of this year on the 38 MW Monte Redondo power station, which is located 325 kilometres north of Santiago. The total investment amounted to USD 100 million.
Gerard Mestrallet, Chairman and CEO of GDF SUEZ said: “GDF SUEZ strongly believes in Chile and in the development opportunities it offers. The Group holds broad and multiple areas of expertise in this country and intends to further reinforce them. The two significant contracts just announced by the Group are key milestones within its production diversification strategy.”
GDF SUEZ operates in Chile through Electroandina and Edelnor, respectively the largest and second largest producers in Chile’s northern network, representing around 50% of the market. The Group is also constructing two thermal power plants, and has a 50% stake in the LNG receiving and regasification terminal GNL Mejillones which should be completed by the beginning of 2010.
With its strong energy demand and renewable energy potential, Latin America is a key market for GDF SUEZ. In Brazil, where the Group is the leading private power producer, it is currently constructing two major hydro plants, Estreito (1,087 MW) and Jirau (3,450 MW), and has recently inaugurated the São Salvador plant (241 MW). The Group is also strongly placed in Peru, where it is the second largest private electricity producer.
| Type: | NORMAL |
| Company: | GDF Suez |
| Country: | France |