BAKU, Azerbaijan, April 15. TotalEnergies has signed a Heads of Agreement (HoA) with Energia Natural Dominicana (ENADOM), a joint venture between AES Dominicana and Energas, for the supply of 400,000 tons of liquefied natural gas (LNG) per year, Trend reports.
The agreement, which is subject to the finalization of Sales and Purchase Agreements (SPAs), is set to commence in mid-2027 and will last for 15 years. The price of the LNG will be indexed to Henry Hub.
The LNG will be used to supply a 470 MW combined-cycle power plant currently under construction in the Dominican Republic. This plant is expected to increase the country’s electricity generation capacity and contribute to the nation's energy transition. By shifting from coal and fuel oil to natural gas, the project aims to reduce the country’s reliance on more carbon-intensive energy sources.
Gregory Joffroy, Senior Vice President LNG at TotalEnergies, commented, “We are pleased to have signed this agreement to address the energy needs of the Dominican Republic. This new contract highlights TotalEnergies' leadership in the LNG sector and our commitment to supporting the energy transition on the island. It will serve as a natural outlet for our increasing US LNG supply.”
Edwin De los Santos, CEO of ENADOM, emphasized the importance of the agreement: “This partnership reflects the confidence placed in the Dominican Republic’s energy sector, specifically in ENADOM and AES. ENADOM is committed to ensuring a reliable, competitive, and environmentally responsible energy supply, and we are proud to contribute to the strengthening of the country’s energy matrix.”
The agreement marks a significant step in enhancing the Dominican Republic's energy infrastructure and advancing its transition to cleaner energy sources.