DocuSign Envelope ID: 704C5647-FD79-4217-A1C4-04D52F0E64E7
CNGIC
Santiago, December 23, 2022.
Mrs Solange Berstein,
President
Financial Market Commission,
Av. Liberator Bernardo O’Higgins 1449,
Present.
Ref: ESSENTIAL FACT
Dear Sir or Madam:
ENGIE Energía Chile S.A., a public limited company registered in the Securities Registry under No. 0273 (the “Company”), pursuant to the provisions of Article 10 of Law No. 18,045 and General Standard No. 30 of the Commission for the Financial Market, hereby communicates as an essential fact with respect to the Company, of its businesses, its public offering securities or the offering thereof, the following:
The Board of Directors of the Company, at its extraordinary meeting held on December 22, took note of the status of the discussions with its liquefied natural gas (“LNG”) supplier, Total Energies Gas & Power Limited (“Total”), in the context of the tightness of the international fuel market and the effects that derive from it for the national electricity system (“SEN”). with a view to ensuring by 2023 the supply of the 4 LNG charges committed in the so-called “Contract 1” in force with the aforementioned supplier.
Despite the conversations carried out and efforts made to this end, the Company has only been able to ensure to date, by 2023, the supply of the 3 LNG charges corresponding to the so-called “Contract 2”, for the total equivalent of 9.9 TBtu, which was communicated both to the National Electricity Coordinator, and Sociedad GNL Mejillones S.A. for the purposes of coordinating the ship unloading program of the Mejillones unloading, storage and regasification terminal operated by said company. To date, discussions leading to the supply of LNG charges under Contract 1 have not been successful.
The lower availability of LNG by 2023 compared to previous years will mean having a lower volume of LNG for electricity generation in the NSS, and as a result, the Company will have to increase its energy purchases in the short-term spot market to supply its customers. It is not possible to estimate, at this date, the impact on results for 2023 of this lower availability of LNG.
As a result of the foregoing, the Board of Directors agreed, in the event that the negotiations held for this purpose with Total do not succeed within this month, to exercise in the competent jurisdictions the legal actions leading to the effective liability of said supplier in accordance with the LNG supply contracts in force.
Without further ado, greets you very sincerely,
Fernando Valdes,
Corporate Manager of Legal Affairs,
ENGIE Energía Chile S.A.
c.c.: Santiago Stock Exchange – Stock Exchange,
Bolsa Electrónica de Chile – Stock Exchange.
ENGIE,
Av. Isidora Goyenechea 2800 16th floor, Las Condes,
Santiago de Chile,
www.engie.cl.
Link to the file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=8507fe1b56d363aa48bfe39d97ca1526VFdwQmVVMXFSWGxOUkZFMFQwUlpNazVSUFQwPQ==&secuencia=-1&t=1682376108
