Volume 2, issue #7 - 12-03-1997

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Electroandina invests $ 760 mm in pipeline and power

Mar. 4, 1997 The Tocopilla Thermoelectric power station, newly called Electroandina, will construct a $ 330 mm, 880 km gas pipeline with a capacity of 7 mmcm per day, called Norgas, between the Salta province in Argentina and the Port of Tocopilla. It will do so in conjunction with the Argentinean construction company Techint. The pipeline will span 450 km on the Argentinean side from Tartagal province, 430 km on the Chilean side, and will supply gas directly to the Chuquicamata and Maria Elena mining projects in addition to supplying Tocopilla with a new energy source for electric power generation. Electroandina also announced that it will immediately start construction of two 230 MW power generation plants in Tocopilla at a cost of $ 200 mm and will invest $ 230 mm to reinforce its electricity transmission lines.
Tocopilla Central is 51% owned by Inversora Electrica Andina, which is composed of Tractebel of Belgium, Ibredrola of Spain and Enagas of Chile. Codelco owns 34% of the project, and employees ofTocopilla and Codelco own the remainder. The project's go-ahead was based on assured demand, said Electroandina General Manager Jos Remacle. Remacle said electricity supply contracts have already been signed with Chuquicamata, Radimiro Tomic and El Abra, and gas contracts have been closed with Chuquicamata and Soquimich, already fulfilling project break-even requirements of 4 mm cubic meters per day.