WASHINGTON AND BRUSSELS, March 28, 2022–(BUSINESS WIRE)–EIG, a leading institutional investor in the global energy and infrastructure sector, and Fluxys, a leading energy infrastructure company, today announced that they have acquired a joint 80% stake in Enagas Chile SpA and subsidiaries from OMERS Infrastructure to GNL Quintero SA (“Quintero”), Chile’s largest LNG regasification terminal Details of the transaction were not disclosed.
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Quintero is a key energy infrastructure company supporting Chile’s decarbonization strategy with a bridging fuel. This makes it possible to reconcile economic growth with the introduction of renewable energies and the progressive elimination of coal. Quintero has been in operation since 2009. It is the terminal with the largest reception and unloading capacity for LNG (liquefied natural gas), as well as the largest storage and regasification capacity in Chile. The terminal is strategically located in the Bay of Quintero and serves a diverse base of residential, commercial, industrial, transportation and power generation customers in central Chile. The terminal has 75 percent of the country’s LNG regasification capacity. In 2021, 67 percent of all natural gas imports (considering both LNG and pipeline imports) came to Chile through this strategic facility. With a daily regasification capacity of 15 million m3a LNG storage capacity of 334,000 m3 and a daily truck loading capacity of 2,500 m3 The terminal is a reliable supplier of natural gas that contributes to the diversification and security of Chile’s energy supply.
Chile has world-class solar and wind energy resources and renewable capacity equivalent to 4 percent of the world’s total energy needs. The country has set itself the goal of becoming one of the three largest producers of green hydrogen in the world. By 2040, the installation of green hydrogen production plants with a capacity of 200 GW of renewable energy is planned. Chile has already signed several agreements to promote the export of green hydrogen, including with the Belgian ports of Antwerp/Zeebrugge, with Germany, the port of Rotterdam and with South Korea.
The acquisition builds on EIG’s presence in the Chilean market, where it owns the Cerro Dominador facility, a pioneering solar power complex consisting of a 100MW photovoltaic array and a 110MW concentrating solar power (CSP) plant. The photovoltaic system has been in operation since 2017; the solar thermal power plant was successfully connected to the Chilean power grid in April 2021. EIG is also a partner of AME SpA, a Chile-based project developer and independent power generation company. AME is co-owner of Generadora Metropolitana, Chile’s fifth largest electricity generation company, and HIF Global, a leading hydrogen and e-fuels company working on a number of commercial-scale projects under development and expected to be completed. build in the coming years. .
For Fluxys, the cooperation is a forward-looking investment that gives the company a foothold in another Latin American country where the energy transition is high on the government’s agenda. With its wealth of solar and wind energy resources, Chile aims to produce the cheapest green hydrogen in the world. The Belgian hydrogen import coalition with Fluxys as cooperation partner has confirmed the competitiveness and viability of a green fuel supply chain from Chile to Europe and Belgium.
“We are very excited about the opportunity to invest in Quintero, a company that is a perfect fit with our focus on high-quality, strategic infrastructure that is critical to the region it serves and attractive, offering contracted cash flows,” said R. Blair Thomas, President and CEO of EIG: “We are delighted to once again partner with our world-class operating partner, Fluxys, to help Quintero support Chile’s energy needs and transformation goals with reliable energy. The strong Quintero’s presence in natural gas infrastructure is an attractive starting point to expand the company’s presence in related and adjacent sectors, such as storage, trucking and regasification, and develop green hydrogen production capabilities to be a leader in this emerging industry. position to reach”.
“With three LNG terminals in Europe and with our ambition to invest outside Europe and become a carrier of new energy carriers, Quintero fits perfectly into our growth strategy for a low-carbon future,” says Pascal De Buck, Managing Director and CEO of Fluxys. “We would like to use and expand our knowledge of the industry worldwide and are pleased with the cooperation with EIG as a leading investor in the global energy infrastructure sector, which is already intensively involved in energy transition projects in Chile. Our cooperation in relation to Quintero brings Fluxys to hydrogen development Closer to Chile and supporting the importation of hydrogen in Belgium, we look forward to working with Quintero management and staff to develop new opportunities.”
The transaction is subject to customary closing conditions and is scheduled for the second half of 2022, subject to mandatory merger control procedures and required regulatory approvals.
Citigroup Global Markets Inc. acted as financial advisor to EIG and Fluxys in connection with the transaction. EIG received legal advice from White & Case LLP; Fluxys received legal advice from Linklaters LLP.
EIG is a leading institutional investor in the global energy and infrastructure sectors with $23 billion in assets under management (as of December 31, 2021). EIG specializes in private investments in energy and energy-related infrastructure on a global scale. During its 40-year history, EIG has invested US$39.7 billion in the energy sector. This includes 379 projects or companies in 38 countries on six continents. EIG’s clients include many of the leading pension funds, insurance companies, endowments, endowments and sovereign wealth funds in the US, Asia and Europe. EIG’s headquarters are in Washington DC (USA) with additional offices in Houston (USA), London, Sydney (Australia), Rio de Janeiro (Brazil), Hong Kong and Seoul (Korea). Visit www.eigpartners.com for more information.
Belgium-based Fluxys is a fully independent energy infrastructure group with 1,300 employees and is active in gas transmission and storage, as well as liquefied natural gas (LNG) terminal services. Through subsidiaries around the world, Fluxys operates 12,000 kilometers of gas pipelines and LNG terminals with an annual regasification capacity of 29 billion m³. Fluxys subsidiaries include Euronext-listed Fluxys Belgium, which owns and operates the gas transportation and storage infrastructure and LNG terminal in Belgium.
In accordance with the purpose of the company, Fluxys, together with its stakeholders, makes an important contribution to a successful energy transition and thus to the creation of a better society. Building on unique gas infrastructure assets and commercial and technical knowledge, Fluxys is committed to the transportation of hydrogen, biomethane and other climate-neutral energy carriers, as well as in the areas of COtwo– Capture, use or storage. www.fluxys.com.
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