Chile plans to start negotiations to integrate its electricity grid with Peru's and Bolivia's systems, energy minister Diego Pardow said.
"Chile wants to have [grid integration] in operation as soon as possible," Pardow told Argus on the sidelines of the Latin America Energy Organization's (Olade) annual conference in Santiago, Chile.
The four countries that form the Andean Community (CAN) — Bolivia, Colombia, Ecuador and Peru — unanimously agreed on 30 September to allow Chile to start bilateral negotiations with each party, he said.
Progress has been made over the last two years to draw up regulatory rules and update studies on costs, Pardow said. "We hope to have both ready before year end."
The next step would be to define the financing models to build the infrastructure.
There are studies for a 100km, 220kV line between Arica, Chile, and Tacna, Peru, as well as a 500kV line between Antofagasta, Chile and Arequipa, Peru, he said.
In the case of Bolivia, different options are still being considered.
CAN countries are working to establish regional energy integration and already have some bilateral connections.
US-outfit AES operates the 409km, 345kV InterAndes line between northern Chile and northern Argentina, Chile's only international transmission line.
Italian Enel is developing a $36mn, 500kV line to connect Maule region in center-south Chile to Argentina. The project is currently in the environmental approval system.
It has not yet been decided whether the proposed connections with Peru and Bolivia would also be in the private sphere or public initiatives are part of the national transmission system, said Pardow.
Gas integration
Chile is also talking with liquid natural gas (LNG) terminal operators to assess interest in exporting Argentine natural gas as LNG from Chilean ports on the Pacific, said Pardow.
There are three main gas pipelines, built in the 1990s, delivering Argentine natural gas to north, central and center-south Chile, relatively close to existing LNG terminals in Mejillones, Quintero and Concepcion, respectively.
A recent Olade study proposed investment of $4.2bn to expand pipeline infrastructure and increase bilateral flows, which are currently at 7.8mn m³/d.
The report considers a second expansion connecting Argentine gas to Quintero LNG terminal to liquefy surplus gas for export.
"We need to start evaluating costs in more detail and see if private entities are willing to take on this type of project," said Pardow.
