BG Group Considers Cutting Stake In Chilean Quintero LNG Plant

BG Group PLC (BG.LN, BRGYY) is considering reducing its 40% stake in the Quintero liquified natural gas regasification plant in central Chile to 20%, newspaper Pulso reported Friday citing a company official.

Quintero, one of two regasification plants in Chile, is controlled by BG Group PLC and state oil and gas company Empresa Nacional del Petroleo, or Enap.

BG hired Santander GBM to "explore offers," the newspaper said, citing BG Chile general manager Diego Hollweck.

Despite the possible stake sale, BG will continue to supply the plant with liquified natural gas, Hollweck said.

Other partners in the venture include power producer Empresa Nacional de Electricidad SA (EOC, ENDESA.SN) and local natural gas distributor Metrogas SA.

The newspaper speculates power generators Colbun SA (COLBUN.SN) and AES Gener SA (GENER.SN) could be interested in acquiring the stake.

The Quintero plant has the capacity to deliver 10 million cubic meters of gas a day and is in the process of expanding that capacity to 15 million cubic meters.

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; [e-mail]