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SGS Chile delivered Technical Due Diligence for the Gasatacama pipeline
Project Details:
Period: January – March 2006
Project: Gasatacama pipeline, Chile and Argentina
Service: Technical Due Diligence of existing pipeline to evaluation the technical feasibility of a potential investment be the client
Client: CITIGROUP, Chile
Background
The client, Citigroup mandated SGS to perform a technical due diligent aiming to assure the quality and status of their potential investment and evaluate the technical feasibility of the projected operations over a period of 14 years.
Scope of Service
At the beginning of 2006 SGS performed a technical due diligence of the gas pipeline Atacama Argentina, Atacama Chile and TALTAL Chile. The service was performed based on documentary reviews and site visits.
The technical due diligence consisted of 5 phases:
- Phase I: Verification of the work’s quality on the basis of the standards of design, construction and inspection established in the relevant normative acts (ANSI/ASME B 31.8, Chile; NAG 100, GE-NI-126, Argentina). Verification of the fulfillment of the requirements established by the regulatory frameworks and legislation.
- Phase II: Visual inspection of the existence and condition of the gas pipeline, facilities and sites. Verification of the state of structural and functional integrity.
- Phase III: Identification of the aspects and critical operational control variables to ensure delivery of the basic requirements of the ENDESA Power station.
- Phase IV: Analysis of the pipeline’s operational costs, based on past operations to estimate projections for the 14 years of transport contract with the ENDESA Power station.
- Phase V: Analysis of the implication of the breach of contractual critical operational aspects.
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