SANTIAGO – The Chilean government issued a decree authorizing the duty-free transshipment of imported liquefied natural gas bound for Argentina or other nations in the region, La Tercera newspaper reported.

“As a consequence of the installation in the country of terminals and regasification plants for liquefied natural gas, the shipment of that fuel to Argentina or other countries in the region is technically feasible,” the Finance Ministry document says.

Chile’s first regasification plant, a $1 billion facility in the port of Quinteros, began operations three months ago. A second plant is set to come online by the end of the year at Mejillones, in the far north.

The impetus for the construction of the LNG terminals and regasification plants was a 2004 energy crisis spurred by a sharp cut in natural gas imports from Argentina, which found itself unable to meet its export commitments to Chile because of rising domestic demand and stagnating production.

Chilean Energy Minister Marcelo Tokman said the Finance Ministry decree merely extends to LNG the same tax and customs treatment already enjoyed by other kinds of merchandise in transit.

“If that gas enters the territory and later leaves the country, the passage through Chile is not considered an import or an export, so it will remain free of tax, customs or value added tax,” he said.

Rodrigo Azocar, head of Chilean state oil company Enap, said last month that his country “could sell gas to Argentina in 2010 or 2011.” EFE