AES Corporation commissions $1.2bn AES Colon LNG hub in Panama
AES Corporation said that the $1.2 billion AES Colon LNG hub, the first liquefied natural gas (LNG) hub in Panama and Central America has started commercial operations.
The AES Colon LNG hub, comprises an LNG tank with a storage capacity of 180,000 m3 and a 381MW combined cycle power plant – which started commercial operations in 2018, which will now be fueled by LNG. Previously, the AES Colon power plant utilized gas from temporary sources to generate power.
The integrated LNG project also features a pier for ships between 3,000 m3 and 160,000 m3, a regasification facility, and a terminal for loading trucks for distributing LNG.
The US electric power distribution company said that the commercial operation of the LNG storage facility will enable the use of LNG across the region and place Panama as the natural gas hub for Central America.
According to AES Corporation, LNG usage will bring down CO2 emissions, boost renewable energy penetration, reduces electricity costs and thus creates better price balance to support economic growth.
AES Corporation commissions $1.2bn AES Colon LNG hub in Panama. Image courtesy of Pete Linforth from Pixabay.
Commenting on the AES Colon LNG hub, Andrés Gluski – AES President and CEO said: “The inauguration of the AES Colón storage facility is a significant milestone toward transforming the Central American energy sector, and enabling a safer and more sustainable energy future.
“Since AES introduced natural gas in the Dominican Republic 19 years ago, it saved consumers more than half a billion dollars a year and avoided approximately four million tons of CO2 emissions annually.”
AES Corporation has allocated 80% of the terminal capacity of the AES Colon LNG hub for use by industrial and commercial companies across Panama and Central America. The company is expecting more contracts in the future which will enable its further growth.
The US electric power distribution company claimed that the AES Colon LNG hub was completed in a short span of time in 39 months and during the construction phase, the integrated LNG project had created 2,000 plus jobs.
AES Corporation intends to develop a similar project in Vietnam in the near future, which will bring same kind of benefits to the Southeast Asian region.