Trafigura, a commodities trader headquartered in Singapore, and Chilean energy company Generadora Metropolitana have completed the acquisition of the Los Guindos Power Plant, located in the municipality of Cabrero in the Biobío Region of Chile. Financial terms of the deal were not disclosed.

The acquisition brings together Generadora Metropolitana's operational expertise in the Chilean electricity market and Trafigura's global energy trading capabilities and extensive supply network.

The plant has an installed capacity of 273 megawatts across two turbines and currently runs on diesel. As part of the project, the conversion of the units to natural gas will begin this year. Aside from increasing its maximum generation capacity, the project will enable the facility to run on a lower-emission fuel, enabling a more efficient and flexible operation aligned with the country's energy transition goals.

"Chile is a strategic market for Trafigura in Latin America, and this transaction marks our entry into the country's power sector with a long-term commitment,” says Gerardo Zmijak, commercial director for Trafigura Argentina. “Generadora Metropolitana will bring its operational expertise in the local market, backed by the logistical and commercial experience Trafigura has built over decades in energy markets around the world.”

Generadora Metropolitana will assume 100% of the operation, administration, and overall management of the Los Guindos plant.