MercoPress. South Atlantic News Agency

Chile begins development of gas deposits

Chilean government oil corporation ENAP will be investing 73 million US dollars in Tierra del Fuego's Lake Mercedes natural gas exploration and extraction project.

The figure was revealed during the presentation in Punta Arenas of the Environmental Evaluation report which covers the whole of the proven reserves area.

ENAP officials recently announced that Lake Mercedes deposits could potentially supply 25% of Chile's natural gas demand.

Three 123 kilometres long 18 inches pipelines will be extended from the deposits area in Lake Mercedes to a plant in Cullen. From Cullen gas will be transported along exiting pipelines to the Posesion plant in mainland Chile.

According to the environmental evaluation impact the new pipelines to be built in two stages for financial reasons, will follow existing infrastructure, said ENAP officials.