ARLINGTON, Va. & PARIS--(BUSINESS WIRE)--ENGIE and AES Andres DR, S.A. (AES Andres), a subsidiary of The AES Corporation (NYSE: AES), have agreed to enter into a binding joint marketing agreement for liquefied natural gas (LNG), effective immediately for a period of up to 12 years. The partnership will combine ENGIE and AES’ strengths to foster growth in LNG and natural gas sales in the Caribbean.
ENGIE and AES Andres will jointly market 0.7 million tonnes per annum (mtpa) of LNG. The objective is to provide a cleaner and more cost-effective alternative to oil-fueled power generation, while satisfying a growing need for natural gas in the region. The agreement will pave the way to supply industrial customers and develop small scale demand.
Under the agreement, ENGIE will manage its commitment to deliver up to 0.7 mtpa from its diversified LNG portfolio, primarily via its supply from the Cameron gas liquefaction project in the U.S., expected to come on line in 2018. AES Andres will provide access to its regasification asset in the Dominican Republic, which has an annual capacity of approximately 1.5 mtpa.
This partnership further strengthens the two groups’ relationship following the signing of a supply agreement earlier this year between ENGIE and Gas Natural Atlántico, an affiliate of AES in Colón Panama, under which ENGIE will provide up to 0.4 mtpa of LNG at Panama’s Costa Norte LNG terminal beginning in 2018.
Philip Olivier, Chief Executive Officer of ENGIE GLOBAL LNG declared, “We are delighted to initiate this new partnership with AES, which has an attractive existing platform for LNG import. This agreement underlines the value that ENGIE, as a major LNG player, can bring to utilities and end users such as AES through its LNG portfolio, its access to the global LNG markets, and ultimately its know-how in packaging natural gas as a flexible product that responds to its customer needs.”
“We are proud of our leadership in bringing LNG to the Dominican Republic and the Caribbean, and are happy to partner with ENGIE to provide a competitive and reliable source of LNG by leveraging ENGIE’s LNG position and our existing infrastructure,” said Manuel Perez Dubuc, President of AES Mexico, Central America and the Caribbean.
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 154,950 people worldwide and achieved revenues of €69.9 billion in 2015. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, DJSI World, DJSI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20). To know more, please visit www.engie.com. Follow ENGIE on Twitter @ENGIEgroup.
About AES Andres
AES Andres is a 319 MW gas-fired electricity generation facility and 160,000 cubic meter LNG storage and regasification facility located in the Dominican Republic. AES has a 90% ownership interest in AES Andres.
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 21,000 people is committed to operational excellence and meeting the world’s changing power needs. AES’ 2015 revenues were $15 billion, and we own and manage $37 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2015 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2015 Annual Report on Form 10-K dated on or about February 23, 2016 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.
