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ENGIE and AES Andres enter binding joint marketing agreement for LNG

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LNG Industry,


ENGIE and AES Andres DR, S.A. – a subsidiary of AES Corp. – have released a statement claiming that they have agreed to enter a binding joint marketing agreement for LNG. The agreement is effective immediately for a period of up to 12 years, and will combine both parties' strengths to help grow LNG and natural gas sales in the Caribbean.

Both parties will jointly market 0.7 million tpy of LNG, with the objective of providing a cleaner and more cost-effective alternative to oil-fuelled power generation, whilst also meeting growing demand for natural gas in the region. ENGIE claims that the agreement will help pave the way to supply industrial customers and develop small scale demand.

Under the agreement, ENGIE will deliver up to 0.7 million tpy, largely through its Cameron gas liquefaction project in the US, which is expected to become operational in 2018. AES Andres, meanwhile, will provide access to its regasification asset, which has a capacity of approximately 1.5 million tpy and is located in the Dominican Republic.

The statement claims that the partnership strengthens the companies’ relationship following a supply agreement that was signed earlier in 2016 between ENGIE and an affiliate of AES in Colón, Panama – Gas Natural Atlàntico. Under this agreement, ENGIE will supply up to 0.4 million tpy at the Costa Norte LNG terminal in Panama, commencing 2018.

The Chief Executive Officer of ENGIE Global LNG, Philip Olivier, said: “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.”

Manuel Perez Dubuc, President of AES Mexico, Central America and the Caribbean, added: “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.”

Read the article online at: https://www.lngindustry.com/regasification/02122016/engie-and-aes-andres-enter-binding-joint-marketing-agreement-for-lng/


 

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