Spanish energy firm Repsol is selling a Chilean natural gas unit for $540 million in cash and will use $317 million of the proceeds to pay off debt.

Repsol SA says in a statement Wednesday that it is selling Repsol Butano Chile to a consortium of Chilean investors.

Repsol Butano Chile holds a 45 percent stake in the Lipigas natural gas firm, a major player in sales of bottled gas used by residences and business. Repsol says Lipigas controls 38 percent of Chile’s bottled natural gas market. It has 1,000 distributors. Bottled natural gas is used widely throughout Latin America.

The company says the deal will generate a net capital gain of $170 million.