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.
US LNG supply
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.
TotalEnergies claims it is the largest exporter of US LNG, thanks to its 16.6 percent stake in the Cameron LNG plant in Louisiana and several long-term purchasing agreements.
TotalEnergies previously said it plans to increase its US capacity to 15 Mt/y by 2030 after the start-up of the Rio Grande LNG plant.
The company just exercised its option to buy LNG from the planned fourth train at NextDecade’s Rio Grande LNG facility.
Under the terms of the SPA, TotalEnergies Gas & Power North America will buy 1.5 mtpa of LNG for 20 years on a free-on-board basis at a price indexed to Henry Hub.
The SPA remains subject to a positive final investment decision (FID) on Train 4.
