* Endesa Chile is blocking sale - report
* BG, Endesa at odds over LNG supply contract
* BG plans to sell further stake of Quinteros terminal to Enagas
LONDON/SANTIAGO, Jan 29 Britain's BG Group's planned sale of a remaining stake in a shared liquefied natural gas terminal in Chile is being blocked by another operator of the Quintero station, a spokesperson told Reuters on Tuesday.
Earlier on Tuesday, a Chilean newspaper reported regional power generator Endesa Chile was blocking BG from concluding the sale, in an apparent retaliation over an ongoing dispute between the companies over supplies of the fuel.
The two companies locked horns last year after oil and gas company BG Group Plc said production troubles in Egypt might affect LNG supplies to two of its Chilean customers, including Endesa Chile.
"Naturally we are disappointed that we have been unable to conclude a sale of the final tranche under the planned timetable," a BG spokesperson told Reuters. "This is due to a third party withholding consent. We remain committed to a sale and remain confident that a transaction will be completed, but under a new timeline."
According to Diario Financiero, Endesa Chile is refusing to approve BG's planned sale of its remaining stake in the Quintero terminal, which the two companies operate with state oil company ENAP and industrial conglomerate Copec.
The terminal's contract requires members to authorize a stake sale for it to go through, the paper reported.
BG agreed to sell 40 percent of the terminal to Spain's Enagas last year. It already sold the first 20 percent tranche to the gas grid operator in September for $176 million.
Endesa has expressed its intention to block the sale during talks with the British company over LNG supply, Diario Financiero added.
But the two companies are mulling arbitrations over both the supply and the sale disputes, the paper added.
Endesa declined to comment.
Chilean state oil company ENAP and BG agreed to sign a new supply contract in November, but Endesa did not clinch a deal with BG.
BG Chief Executive Officer Frank Chapman has said the failure of efforts to reinvigorate a field in Egypt would cost the company 30,000 barrels of oil equivalent per day of lost gas output.
Industry sources said in November that very few, if any, cargoes from Egypt had ever been sent to Chile. The sources requested anonymity because they were not authorized to speak to the press.