ARLINGTON, Va. & PARIS--(BUSINESS WIRE)-- ENGIE and The AES Corporation (NYSE: AES) have agreed to enter into a joint venture to market and sell liquefied natural gas (LNG) to third parties in Central America.

The joint venture will utilize the Costa Norte LNG terminal currently under construction in Col?n, Panama, which is owned 50/50 by AES and Inversiones Bah?a. The total capacity of the Costa Norte LNG terminal is approximately 1.5 million tonnes per annum (mtpa), of which 25% will be used for the 380 MW AES Col?n CCGT currently under construction on the same site. ENGIE will supply up to 0.4 mtpa of LNG to the CCGT beginning in 2018. The remaining terminal capacity is primarily available for the joint venture to market and sell to third parties, including up to 0.7 mtpa of LNG sourced from ENGIE mainly through the Cameron gas liquefaction project in the United States.

This joint venture further strengthens the joint marketing agreement signed by ENGIE and AES late last year, whereby both groups agreed to jointly market LNG in the Caribbean, from AES’ Andres regasification facility in the Dominican Republic. The combined regasification capacity of Andres in the Dominican Republic and Costa Norte in Panam? is approximately 3 mtpa.

ENGIE’s and AES’ objective continues to focus on providing a cleaner and more cost-effective alternative to oil-fueled power generation, while at the same time satisfying a growing need for natural gas in Central America and the Caribbean. This new agreement will pave the way for ENGIE and AES to supply LNG to industrial customers, develop small scale demand and provide bunkering services.

About ENGIE

ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 153,090 people worldwide and achieved revenues of €66.6 billion in 2016. 

About AES in Panama

AES in Panama has 777 MW in operation, as a result of its sustained investment in the country since 1998 in its subsidiaries AES Panama and AES Changuinola, which reaches about $ 1.4 billion, and now, adding its AES Col?n project, with an investment of $ 1.1 billion, fulfills its commitment to develop infrastructure solutions and energy projects more environmentally friendly, resulting in the reduction of emissions by about 16 million tons of CO2. 

About AES

The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 17 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 19,000 people is committed to operational excellence and meeting the world’s changing power needs. AES’ 2016 revenues were $14 billion, and we own and manage $36 billion in total assets.