* BG, Endesa Chile at odds over LNG supply contract
* BG plans to sell further stake of Quinteros terminal to Enagas
SANTIAGO/LONDON, Jan 29 (Reuters) - Britain’s BG Group’s planned sale of a remaining stake in a shared liquefied natural gas terminal in Chile is being blocked by fellow shareholder Endesa Chile as the companies clash over supplies of the fuel.
“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.”
The 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 regional power generator Endesa Chile.
An industry source said Endesa Chile was blocking BG from concluding the sale in the Quintero terminal, which the two companies operate with state oil company ENAP and a unit of industrial conglomerate Copec, in an apparent escalation of their dispute.
The terminal’s contract requires members to authorize a stake sale for it to go through, Chilean newspaper Diario Financiero reported earlier on Tuesday.
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.
BG and Endesa Chile are mulling arbitrations over both the supply and the sale disputes, according to Diario Financiero.
Endesa declined to comment.
ENAP and BG agreed to sign a new supply contract last year, but Endesa and BG didn’t clinch a fresh deal.
BG’s former Chief Executive Officer Frank Chapman said last year before his retirement that 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.