* Endesa Chile is blocking sale - report
* BG, Endesa at odds over LNG supply contract
* BG plans to sell further stake of Quinteros terminal to
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
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
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
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