French energy group Engie and AES Andres, a subsidiary of AES in the Dominican Republic, have agreed to enter into a binding joint marketing agreement for LNG, effective immediately for a period of up to 12 years.
Under the terms of the agreement, Engie will deliver up to 0.7 Mt/year of LNG from its global portfolio - mainly from the Cameron LNG project in the United States expected to be commissioned in 2018 - and these volumes will be jointly marketed by Engie and AES Andres in the Caribbean region.The objective is to provide a cleaner and more cost-effective alternative to oil-fired 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. In addition, AES Andres will provide access to its 1.5 Mt/year (2 bcm/year) LNG regasification terminal in the Dominican Republic.
This agreement builds on a previous LNG supply agreement signed with AES, under which Engie will provide up to 0.4 Mt/year of LNG at AES’ Costa Norte LNG terminal in Panama beginning in 2018.