The HoA is for the delivery of 400,000 tons of LNG per year for 15 years, according to a statement by TotalEnergies.
Subject to the finalization of the sales and purchase agreements (SPAs), this agreement is set to start in mid-2027, with the price indexed to Henry Hub, it said.
TotalEnergies said this agreement will enable ENADOM to supply natural gas to the 470 MW combined-cycle power plant, currently under construction, which will increase the country’s electricity generation capacity.
“This project contributes to the energy transition of the Dominican Republic by reducing its dependence on coal and fuel oil through the use of a less carbon-intensive energy source, natural gas,” the French firm said.
AES Dominicana, a unit of US energy firm AES, operates the Andres LNG import terminal in the Dominican Republic.
Launched in 2003, the 1.7 mtpa LNG terminal provides regasified LNG for power plants as well as customers in the industrial and transportation sectors.
Gregory Joffroy, senior VP LNG at TotalEnergies, said this new contract “underscores TotalEnergies’ leadership in the LNG sector.”
“It will be a natural outlet for our US LNG supply which will progressively increase,” he said.
More to follow..