Engie and AES enter JV

The JV will make use of the Costa Norte LNG terminal, which is currently under construction in Colón, Panama, and is half owned by AES and half owned by Inversiones Bahía. The terminal has a total capacity of approximately 1.5 million tpy, with 25% to be used for the 380 MW AES Colón CCGT, which is currently under construction at the same site. Engie will provide up to 0.4 million tpy of LNG to the CCGT commencing 2018.

The terminal’s remaining capacity is primarily available for the JV to market and sell to third parties. This includes up to 0.7 million tpy of LNG sources from Engie mainly through the Cameron gas liquefaction project in the US.

Engie claims that the JV further strengthens the joint marketing agreement signed with AES in late 2016. Under this agreement, both groups agreed to jointly market LNG in the Caribbean from AES’ Andres regasification facility in the Dominican Republic. The combined regasification capacity of the facility in the Dominican Republic and the Coste Norte facility is approximately 3 million tpy.

Both companies’ combined objective is to provide a clean and cost-effective alternative to oil-fuelled power generation, while simultaneously satisfying the growing need for natural gas in Central America and the Caribbean. This new agreement will help pave the way for both parties to supply LNG to industrial customers, develop small scale demand, and provide bunkering services.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05052017/engie-and-aes-enter-jv/