AES inks supply deal in Dominican Republic, eyes growth in Panama

The US energy company AES Corporation, said it has signed a long-term deal to provide regasified liquefied natural gas to a Barrick Pueblo Viejo in the Dominican Republic. 

Under the 10-year deal AES, through its unit, AES Andrés, agreed to deliver 9 trillion British thermal units to Barrick’s 215 Quisqueya I power plant.

Speaking of the agreement, Andrés Gluski, AES president and CEO said the company is now “nearly fully utilizing the terminal’s capacity.”

The AES Andres facility provides gas to AES Dominicana’s two gas-fired power plants as well as 50 industrial clients, two third-party power plants and 15,000 gas vehicles in the Dominican Republic.

AES is currently constructing an LNG receiving terminal in Panama to be completed in mid-2019, the first of its kind in Central America.

“We expect to replicate this success in Panama, where approximately 60 percent of the tank’s capacity is available for future growth,” Gluski said.

Year-to-date the company has sold 25 TBTU of its excess LNG capacity, to meet growing demand for efficient natural gas in the region, leaving approximately 60 tBtu of excess capacity representing potential upside.

The plant and regasification terminal were inaugurated in August, and the LNG tank, which will be the largest in the Caribbean, is expected to begin operations in2019.

Currently, the 154,000-cbm LNG carrier Provalys, that is now part of Total’s fleet following its acquisition of Engie’s portfolio of upstream liquefied natural gas (LNG) assets in July serves as a floating storage unit, and will be replaced by Gaselys, that has the same characteristics, AES Panama said in an earlier statement.