French multinational electric utility company Engie and US-based Fortune 200 global power company AES Corporation are entering a joint venture agreement that will strengthen their marketing partnership for liquefied natural gas (LNG) in Central America.
The joint venture will use the Costa Norte LNG terminal currently under construction in Colón, Panama, which is owned 50/50 by AES and Inversiones Bahía. The total capacity of the Costa Norte LNG terminal is approximately 1.5 million tons per annum (mtpa), of which 25% will be used for the 380-megawatt(MW) AES Colón CCGT currently under construction on the same site.
Engie will supply up to 0.4 mtpa of LNG to the CCGT beginning in 2018. The remaining terminal capacity is primarily available for the joint venture to market and sell to third parties, including up to 0.7 mtpa of LNG sourced from Engie mainly through the Cameron gas liquefaction project in the US.
The joint venture further enhances the joint marketing agreement signed byEngie and AES late last year, whereby both groups agreed to jointly market LNG in the Caribbean, from AES’ Andres regasification facility in the Dominican Republic. The combined regasification capacity of Andres in the Dominican Republic and Costa Norte in Panamá is approximately 3 mtpa.
Engie’s and AES’ objective continues to focus on providing a cleaner and more cost-effective alternative to oil-fueled power generation, while at the same time satisfying a growing need for natural gas in Central America and the Caribbean. The new agreement will pave the way for Engie and AES to supply LNG to industrial customers, develop small scale demand, and provide bunkering services.