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Natural gas dominates Dominican Republic’s energy buzz

Santo Domingo.- The CEO of  Dominican Republic’s State-Owned Electric Utility (CDEEE) on Thursday said they study the possibility of extending the contract with the owners of the Cogentrix power plant 12 more years  to ease its conversion to natural gas.

Ruben Jimenez Bichara’s statement comes just hours after the U.S. based energy and telecom group North Energy Central (NEC) announced plans to sell natural gas to countries in the Central American-U.S.- Dominican Republic Free Trade Agreement (Cafta-DR), in addition to install a natural gas-fired power plant in Manzanillo, Montecristi (northwest).

The official said since the Cogentrix contract still has eight years left, while taxpayers have to pay US$4.5 million for a shut down plant of 300 megawatts, “it’s better for us to extend that contract and convert it.”

Speaking during a breakfast with economic editors and opinion leaders in the CDEEE offices, Jimenez Bichara said to generate enough energy, a natural gas storage terminal is needed, which he affirms could be built within two years. “You know that the contract with Cogentrix has 8 years left and if we reach an agreement with this company we must allocate more than 400million dollars in those 8 years while keeping plant shut down, so it’s more logical and feasible to reach an agreement with its owners.”

Source: DT

Category: DR News |

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Last updated December 9, 2016 at 7:25 PM
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