Engie and AES enter LNG partnership for Central America
Engie and the AES Corporation have entered into a partnership to market and sell liquefied natural gas (LNG) to third parties in Central America.
Central to the joint venture is the Costa Norte LNG terminal currently being constructed in Colón, Panama. Co-owned by AES and Inversiones Bahia, the completed Costa Norte terminal will have a total capacity of 1.5 million tonnes per annum. 25% of this capacity will go towards powering the 380 megawatt AES Colón Combined Cycle Gas Turbine (CCGT).
As part of the new agreement, Engie will supply up to 0.4 million tonnes per annum of LNG to CCGT from the start of 2018. The remaining terminal capacity is primarily available for the joint venture to market and sell to third parties, including up to 0.7 million tonnes per annum of LNG sourced from Engie via the Cameron gas liquefaction project in the United States.
The new joint venture adds to the joint marketing agreement signed between Engie and AES in late 2016, which saw the two groups agree to jointly market LNG in the Caribbean from AES Andres’ regasification facility in the Dominican Republic.
AES and Engie are continuing their objective of delivering a cleaner, more cost-effective alternative to oil-fuelled power generation, while also meeting the growing need for natural gas in Central America and the Caribbean.