Chile's Endesa reaches agreement with BG over gas supply contract
BY GRACIELA IBANEZ
SANTIAGO -- After several months at loggerheads, Endesa and BG have agreed to a new LNG supply contract, Endesa said.
After Henry Hub prices declined sharply, BG sought to renegotiate the conditions on long-term LNG supply contracts signed in 2007 with Endesa, state oil company, Enap, and Metrogas.
In a statement, the power producer said the gas deal will help the development of new gas-fired projects in central Chile.
Under the new 20-year deal, BG will sell an undisclosed contracted volume at $8 a MMBtu. Any additional gas over the contracted volume will be sold at $11 per MMBtu, local Diario Financiero reported citing undisclosed sources.
Dow Jones Newswires