Central El Campesino of Chile has signed up for 0.6 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Cheniere Energy’s Corpus Christi Liquefaction Project, which is under construction in Texas. The regasified LNG would fuel a 640 MW power plant under development.

The sale and purchase agreement is with Cheniere Marketing International LLP. LNG is to be delivered ex-ship for 20 years beginning in 2019.

The combined-cycle power plant that Central El Campesino is developing is expected to provide power into Chile’s Central Interconnected System. In the December power auction, Central El Campesino won a bid to sell 480 MW to local distribution companies, which would underpin the construction of the power plant. The LNG would be delivered, stored and regasified at proposed floating storage regasification unit, Penco Lirquen LNG Terminal.

The Central El Campesino power plant is being developed by the Chilean company Biobiogenera in association with Electricite de France (EDF). In order to reach a final investment decision and commence construction on the Central El Campesino power plant and the Penco Lirquen LNG Terminal, both projects must receive regulatory approvals and obtain financing. Cheniere is a 50% partner in the Penco Lirquen LNG Terminal.

In May the U.S. Department of Energy issued a final authorization for the Corpus Christi Liquefaction Project to export domestically produced LNG to countries that do not have free trade agreements with the United States (see Daily GPI, May 12).