First Australian LNG cargo to Chile

Australia has just shipped its first LNG cargo to Chile. The cargo is from the Shell-operated QCLNG project at Gladstone in Queensland. It was transported aboard the Sevilla Knutsen. The tanker docked at Quintero, Chile on 15 August after a 24-day voyage of over 13,500 nautical miles. QCLNG cargoes generally go to China and Japan. Quintero mostly imports LNG cargoes from the Atlantic Basin. In 2019 it imported cargoes from the US, Trinidad Tobago and Equatorial Guinea so a cargo from Australia is unusual and shows the degree of over supply in Asia.

Historically Chile imported its gas from Argentina but decided to build an LNG import terminal after interruptions to Argentinian supply in 2004-5. BG (now Shell) wrote a portfolio contract with GNL Quintero in 2006 to supply 3 Mtpa from 2009 to 2030. The import terminal commenced operation in 2009 only 27 months after signing of the EPC contract. As well as supplying gas into pipelines the terminal has a major truck-loading facility. Wholesale gas prices in Chile averaged US$6.50/MMBtu in 2019 according to the International Gas Union.