AES Andres, InterEnergy Holdings to develop natural gas in Dominican Republic’s east region
Santo Domingo.- AES Andres and InterEnergy Holdings have entered into an Agreement with the purpose of further developing the natural gas market in the Eastern region of the Dominican Republic.
The first stage of the project shall consist of the construction of a 45km pipeline, connecting the AES Andres Terminal, located in the port of Andrés, Boca Chica, to the San Pedro de Macorís region. The purpose of this pipeline is to provide natural gas to meet the existing demand in the area, especially to the power generation plants. Completion of this first stage is scheduled for the end of the year 2014.
The second stage will aim at expanding the storage capacity of liquefied natural gas at the AES Andres facilities, which will enable the project to provide the most reliable supply of natural gas to additional clients, thus meeting the continuously growing demand in the Eastern part of the country.
The execution of this agreement confirms the interest these two companies have in developing a close strategic collaboration within the next few years, focused on the use of natural gas for power generation purposes.
As such, AES Andres and InterEnergy are working jointly to take on measures for the improvement of the resources available in order to enhance efficiency in the generation industry, as a response to the growing demand projected in this region of the country. This project will greatly benefit the Dominican Republic since it will produce a change in the country´s energy matrix that will reduce the use of petroleum-based fuels, implying economic benefits for the electricity sector of some US$250-300 million per year, in addition to reducing the CO2 emissions and thereby contributing to cleaner and more environmentally friendly energy.
For the AES Dominicana Group, this project is another strategic achievement in the development of the natural gas market in the Dominican Republic, further enhancing the fuel options to supply all power customers in the country.
For InterEnergy, the project marks an evolution of its previously announced plans to venture into the natural gas market and confirms its continued commitment to investing in the Dominican Republic.
ABOUT AES DOMINICANA
The AES Dominicana Group first started its operations in the Dominican Republic in 1997, now being the main investor in the power industry and a cornerstone of the Dominican Power Industry, since AES supplies around 40% of the energy supplied to the Interconnected National Electricity System (SENI). The AES Dominicana Group includes the companies Dominican Power Partners (DPP), AES Andres and 50% economic interest in EGE ITABO S.A. The AES Dominicana’s portfolio generates power using the two most competitive fuels in the market, coal and natural gas, being the latter considered as the most environmentally friendly fuel.
InterEnergy Holdings is one of the largest investors in the power sector of the Dominican Republic, with controlling positions in Consorcio Energético Punta Cana Macao S.A. (CEPM) and Compañía de Electricidad de San Pedro de Macorís (CESPM). In addition, InterEnergy indirectly holds the largest economic interest in Haina Investment Company, the private sector shareholder of Empresa Generadora de Electricidad Haina S.A. (EGE Haina). The portfolio managed by InterEnergy represents more than 1,000 MW of combined installed capacity in the Dominican Republic, with another 250 MW under construction. InterEnergy, through its predecessor, was also pioneer in the use of renewable energy in the Dominican Republic, by establishing the first wind power complex in the country, a partnership between EGE Haina and CEPM with the Los Cocos and Quilvio Cabrera wind farms.
Source: Dominican Today
Category: DR News |