Ecuador to build gas storage terminal to save costs
- Source: Xinhua
- [10:32 September 13 2009]
- Comments
Ecuador will build an underground gas storage terminal to save significantly on costs, state-owned Petroecuador reported Friday.
The 124 million US dollar terminal, to be located in Santa Elena province, will be built by Asian company Shi Asia & Partners, Petroecuador said in a statement.
The 18-month project was expected to be completed by March 2011. The terminal is designed to guarantee the supply of liquefied petroleum gas for Ecuador over the next two decades.
Ecuador's floating gas storage units, currently under the control of the Dutch company Trafigura, have cost the government about 950 million dollars over the past two decades.
With the new terminal, Petroecuador expects to save about 480 million dollars over the next 20 years.
Petroecuador said the government will be able to buy gas directly from producers at a comparatively low cost. It also could distribute the gas without intermediates, Petroecuador said.
