* Agreement relating to 0.4 million tonnes per year from mid-2027
* Will feed a gas power plant on the island
* The Dominican Republic should see its request for gas increase
* Totalnergies must find more buyers for its American LNG
(Add details, context)
Paris, April 15 – Totalenergies French signed an agreement to provide 0.4 million tonnes of liquefied natural gas (LNG) per year to Energia Natural Dominicana (Enadom) in order to supply a future power plant, as part of the Dominican Republic plan aimed at reducing its dependence on fuel oil and coal.
The agreement is expected to start in mid-2027 and last 15 years, with an indexed price on the American reference price Henry Hub, said totaling in a press release.
The French oil giant said that the Caribbean island nation was a “natural outlet” for part of the American LNG supply which it has committed to buy, which will reach 15 million tonnes by 2030.
According to the International Energy Agency, the Dominican Republic should increase its share of natural gas and renewable energies to meet the legal requirements to reduce carbon emissions by 2030.
According to the press release, Enadom, a joint venture between Energas and AES Dominicana, will use LNG to supply a combined cycle power plant of 470 megawatts currently under construction.
Totalnergies has intensified its efforts to sign LNG contracts whose prices are linked to the American reference index, more recently in India and Asia, which allows the company to repercussions if the prices of the Henry Hub increase or fall compared to the other markets it supplies. (Report by America Hernandez in Paris; edition of David Evans and Susan Fenton)
