Gas Reserves Found in South Chile

Gas reserves found in south Chile

SANTIAGO, June 30 (Xinhua) — The National Petroleum Company ( ENAP) of Chile has found important natural gas reserves in Lake Mercedes, the tip south of the country, which could meet 25 percent of the national demand.

ENAP Director Enrique Davila estimated a daily extraction of 5 million cubic meters of gas in the wastelands, local daily La Tercera reported.

ENAP began to look for natural gas in the Magellan’s basin, the very south Chile, in 2004, and after discovering reserves in Lake Mercedes, it invested 13 million US dollars there.

Davila said it takes two to three years to finish development work, and that his company will begin official operation there in 2008.

Now, 30 percent of Chile’s economy relies on natural gas.