Penco Lirquén FSRU

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Penco Lirquén FSRU, also known as Octopus LNG Terminal and FSRU Penco Lirquén, is a proposed LNG import terminal in Chile.

Location

Table 1: Location details

Name	Location	Coordinates (WGS 84)
Penco Lirquén FSRU	Concepción Bay, Bulnes, Biobío region (VIII), Chile	-36.683333, -73.033333 (approximate)

The map below shows the approximate location of the terminal:

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Project Details

Table 2: Infrastructure details

mtpa = million tonnes per year

Name	Facility type	Status	Capacity	Total terminal capacity	Offshore	Associated infrastructure
Penco Lirquén FSRU	import	proposed	2.7 mtpa	2.7 mtpa	True	El Campesino power station

Table 3: Cost

Name	Facility type	Cost	Total known terminal costs
Penco Lirquén FSRU	import	–	–

Financing

No financing data available.

Table 4: Project timeline

FID = Final Investment Decision, used by some developers to indicate a project will move forward

Name	Facility type	Status	Proposal year	FID year	Construction year	Operating year	Inactive year
Penco Lirquén FSRU	import	proposed	2014	–	–	–	–

Ownership

Table 5: Ownership

Name	Facility type	Status	Owners	Parent companies	Operator
Penco Lirquén FSRU	import	proposed	Biobiogenera [50%]; Cheniere Energy Inc [50%]	Biobiogenera [50.0%]; Cheniere Energy Inc [50.0%]	–

Table 6: Vessel ownership

Name	Facility type	Status	Vessel owners	Vessel operator
Penco Lirquén FSRU	import	proposed	Höegh Evi	Höegh Evi

Background

Formerly known as the Octopus LNG project, Penco Lirquén was to comprise a floating storage regasification unit (FSRU) in Concepción Bay. The LNG project was expected to have capacity of 0.39 bcfd and send gas to the onshore network via a 2.5km submarine pipeline.

The Penco-Lirquén LNG import terminal was proposed as a joint venture of Biobiogenera (50%) and Cheniere Energy (50%) to provide LNG to the proposed El Campesino power station, which was to be developed as a joint venture between Biobiogenera and Electricite de France (EDF).

In May 2015, Norway’s Höegh LNG signed a 20 year contract with Penco-Lirquén's predecessor, Octopus LNG, to provide the FSRU (floating storage and regasification unit) for the LNG import project. As of May 2017, the project had been delayed 12-18 months due to environmental concerns.

After six years of delays, including the revocation of the project's original environmental license by Chile's Supreme Court for failure to properly consult with indigenous groups, the terminal was unanimously approved by the Regional Commission for Environmental Assessment in August 2019.

However, as of February 2020, construction plans remained suspended due to new legal challenges stemming from the project developers' inadequate consideration of citizen input during the environmental assessment process, including failure to consult with the Koñintu Lafken Mapu and Peumellén indigenous communities. As of May 2021, opponents of the project were reportedly preparing to present their grievances before the Committee of Environmental Ministers, with plans to take their case to Valdivia's Environmental Court if necessary.

As of June 2022, the Penco Lirquén LNG terminal and the El Campesino power station both appeared to be shelved, as the owners had provided no further news about either project in more than two years. The project's official website had remained inactive since at least 2021, and recent news reports indicated that a different gas and solar power project had been proposed for the same site.

Environmental approval and subsequent litigation

In October 2023, nine years after the project was first proposed, Chile's Committee of Ministers gave unanimous environmental approval for the Penco Lirquén LNG terminal to move forward. The mayors of the neighboring communities of Talcahuano and Penco immediately announced plans to revive legal opposition to the project. As of July 2024, forecasts called for the terminal to begin commercial operations in 2027.

After the project's approval, "the company GM Energy did not confirm the execution of the project in the short term and stated that the company's current focus was on implementing renewable energy projects, mainly solar and storage, in support of the country's goal of carbon neutrality by 2050."

As of March 2026, the fate of the Penco Lirquén LNG terminal remained uncertain. Despite reaffirmation of the project's favorable environmental approval (RCA) by Chile's Committee of Ministers in February 2026, two cases opposing the project continued to be litigated before the country's Third Environmental Court on behalf of the community of Penco.

Financing

In December 2016 a group of ten international banks agreed to provide loans totalling US$850 million for the development of the Penco Lirquén LNG terminal and the 640MW El Campesino combined cycle gas turbine plant. The banks involved included DNB Nord, Societé Générale, Mitsubishi UFJ, Crédit Agricole, Sumitomo Mitsui Banking Corporation, BNP Paribas, KDB, Scotia, BCI and Siemens.

Opposition

Protestors speaking out against Penco-Lirquén (Octopus) gas project, source: Resumen

On June 28, 2016, the Evaluation Commission of the Biobio Region approved the LNG terminal project. Various parts of the province were subsequently blockaded by citizens protesting the project's approval on the grounds that proper environmental regulatory procedures had not been followed. In addition to the blockades, there was a strike among public sector workers who then demonstrated in the streets. According to reports, the demonstrations were met with police repression. In the neighborhood of Lord Cochrane and the Lirquén Hospital, demonstrators blockaded traffic in protest of the Penco-Lirquén terminal and its potential environmental impacts. Seven people were arrested.

In February 2017, the LNG terminal project had its environmental approval revoked by the Chilean Supreme Court. The ruling was the result of a lawsuit brought forward by the Konintu Lafken Mapu Indigenous association. The court stated that the original permit granted by the regional environmental evaluation service acted illegally by prematurely terminating the project’s indigenous consultation phase.

Civil society and environmental groups have continued to protest against the Penco-Lirquén project for a variety of reasons, including the terminal's perceived impact on air, soil and water quality, tourism, and the local fishing economy.

In May 2025, the municipality of Penco formally joined the judicial process as a third‑party intervenor before the Tercer Tribunal Ambiental de Valdivia, aiming to revoke the project's approval. Among other factors, the municipality presented arguments claiming irreparable collective harm to the territory and public health, deficiencies in the environmental assessment, omissions in the indigenous consultation process, and threats to vulnerable species and ecosystems, including marine biodiversity and coastal wetlands.

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Additional data

To access additional data, including an interactive map of LNG terminals, a downloadable dataset, and summary data, please visit the Global Gas Infrastructure Tracker on the Global Energy Monitor website.