ENGIE and AES Andres DR, S.A. (AES Andres), a subsidiary of The AES Corporation, 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 tonnes per annum (mtpa) 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 mtpa from its diversified LNG portfolio, primarily via its supply from the Cameron gas liquefaction project in the U.S., expected to come on line in 2018. AES Andres will provide access to its regasification asset in the Dominican Republic, which has an annual capacity of approximately 1.5 mtpa.
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 mtpa of LNG at Panama’s Costa Norte LNG terminal beginning in 2018.