ENGIE and AES Andres DR, S.A. (AES Andres), a subsidiary of The AES Corporation (AES), have agreed to enter into a binding joint marketing agreement for liquefied natural gas (LNG), effective immediately for a period of up to 12 years. The partnership will combine ENGIE and AES’ strengths to foster growth in LNG and natural gas sales in the Caribbean.
ENGIE and AES Andres will jointly market 0.7 million tpy of LNG. The objective is to provide a cleaner and more cost-effective alternative to oil-fueled power generation, while satisfying a growing need for natural gas in the region. The agreement will pave the way to supply industrial customers and develop small scale demand.
Under the agreement, ENGIE will manage its commitment to deliver up to 0.7 million tpy from its diversified LNG portfolio, primarily via its supply from the Cameron gas liquefaction project in the US, expected to come online in 2018. AES Andres will provide access to its regasification asset in the Dominican Republic, which has an annual capacity of approximately 1.5 million tpy.
This partnership further strengthens the two groups’ relationship following the signing of a supply agreement earlier this year between ENGIE and Gas Natural Atlántico, an affiliate of AES in Colón Panama, under which ENGIE will provide up to 0.4 million tpy of LNG at Panama’s Costa Norte LNG terminal beginning in 2018.
Philip Olivier, Chief Executive Officer of ENGIE GLOBAL LNG declared, “We are delighted to initiate this new partnership with AES, which has an attractive existing platform for LNG import. This agreement underlines the value that ENGIE, as a major LNG player, can bring to utilities and end users such as AES through its LNG portfolio, its access to the global LNG markets, and ultimately its know-how in packaging natural gas as a flexible product that responds to its customer needs.”
“We are proud of our leadership in bringing LNG to the Dominican Republic and the Caribbean, and are happy to partner with ENGIE to provide a competitive and reliable source of LNG by leveraging ENGIE’s LNG position and our existing infrastructure,” said Manuel Perez Dubuc, President of AES Mexico, Central America and the Caribbean.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/05122016/engie-and-aes-to-provide-competitive-lng-supply-in-the-caribbean/