Penco Lirquén LNG Terminal

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This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.
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Penco Lirquén LNG Terminal is an LNG terminal under development in Biobío region (VIII), Chile. There have been no development updates since 2017 and the project is presumed to be shelved.

Location

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Project Details

  • Owner:
  • Parent: Octopus LNG project
  • Location: Concepción Bay, Bulnes, Biobío region (VIII), Chile
  • Coordinates: -36.683333, -73.033333 (approximate)
  • Capacity: 2.7 mtpa, 0.39 bcfd
  • Status: Shelved
  • Type: Import
  • Start Year: Projected 2019

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Penco Lirquén LNG Terminal is an LNG terminal under development in Biobío region (VIII), Chile.[1]

The former Octopus LNG project, now known as the Penco Lirquén LNG terminal, comprises a floating storage regasification (FSRU) LNG port terminal in region VIII's Concepción bay. The LNG project is expected to have capacity of 0.39 bcfd and will send gas to the onshore network via a 2.5km submarine pipeline.[2]

The Penco-Lirquén LNG import terminal is a joint-venture of Biobiogenera (50%) and Cheniere Energy (50%). Biobiogenera itself is a joint-venture between Andes Mining & Energy (a Chile-based independent power producer) and Beacon Investments (a Chile-based industrial group).[3] The LNG terminal is mainly meant to source LNG to the Central El Campesino power plant, which is being developed as a joint venture between Biobiogenera and Electricite de France(EDF). The El Campesino project, which is not operational, will be dependent on LNG from Penco-Lirquén.[4]

In May 2015, Norway’s Höegh LNG signed a 20 year contract with Octopus LNG, now known as penco-lirquen, to provide the FSRU (floating storage and regasification) for the LNG import project. As of May 24, 2017, the project has been delayed 12-18 months due to environmental concerns.[5]

There have been no development updates since 2017 and the project is presumed to be shelved.

Opposition

On June 28, 2016, the Evaluation Commission of the Biobio Region approved the LNG terminal project. Various parts of the province were subsequently blockaded by citizens in protest of the approval, which many believe didn’t follow proper regulatory environmental procedures. In addition to the blockades, there was a strike among public sector workers who then demonstrated in the streets. According to reports, the demonstrations were met with police repression.[6]

On October 14, 2016, in the neighborhood of Lord Cochrane and the Lirquén Hospital, demonstrators blockaded traffic in protest of the Penco-Lirquén terminal and its potential environmental impacts. Seven people were arrested.[7]

In February 2017, the LNG terminal project had its environmental approval revoked by the Chilean Supreme Court. The ruling was the result of a lawsuit brought forward by the Konintu Lafken Mapu Indigenous association. The court stated that the original permit granted by the regional environmental evaluation service acted illegally by prematurely terminating the project’s indigenous consultation phase.[8] There have been no development updates since then, and the project is presumed to be shelved.

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