LONDON Nov 7 British oil and gas company BG
Group Plc's production troubles in Egypt may affect
supplies of Liquefied Natural Gas to two of its Chilean
customers, Endesa Chile and state-owned ENAP, BG said
Last week BG Chief Executive Frank Chapman said the failure
of efforts to re-invigorate a field in Egypt would cost the
company 30,000 barrels of oil equivalent per day of lost gas
"Regrettably, this has had an impact on the number of
cargoes now expected to be delivered to Chile in the 2013
contract year," said a BG spokesman.
A shortfall would trigger so-called "Supply Shortfall
Quantity Payments" under the contract to compensate the two
customers, he said.
A third Chilean customer, Metrogas, is unaffected because
its contract for BG gas is not directly tied to the Egyptian
A statement on the English language version of Endesa
Chile's website indicated a willingness to negotiate further to
secure the supplies it needs.
"Endesa Chile clarifies that the negotiations it is holding
with BG are linked to the issue of the price of the subscribed
contracts and not to the alleged failure of supply from BG," it
BG's spokesman declined to elaborate on any discussions, and
would not give details of the contract terms, the compensation
payments, or the amounts of gas involved.
News of the Egyptian problems and other output issues hit
BG's share price hard last week.