TotalEnergies firming up 15-year LNG deal to meet Caribbean nation’s energy needs

France’s energy giant TotalEnergies is working on closing a multi-year liquefied natural gas (LNG) sale and purchase agreement (SPA) in the Caribbean, which will enable it to assist the Dominican Republic in boosting its electricity supply.

The deal with Energia Natural Dominicana (ENADOM), a joint venture between AES Dominicana and Energas, will see TotalEnergies deliver 400,000 tons of LNG per year to the Dominican Republic for 15 years, starting in mid-2027, with the price indexed to Henry Hub. This deal is subject to the finalization of the sale and purchase agreements.

Edwin De los Santos, Chief Executive Officer at ENADOM, highlighted: “This agreement with TotalEnergies, is the result of the confidence placed in the Dominican Republic’s energy sector and, specifically, in ENADOM and AES.

“This partnership, alongside ENADOM’s has demonstrated investment capabilities in providing natural gas to the Dominican electricity market by ensuring a reliable, competitive, and environmentally responsible energy supply.”

This heads of agreement will allow 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 amid the growing demand.

Gregory Joffroy, Senior Vice President LNG at TotalEnergies, commented: “We are pleased to have signed this agreement to answer, alongside AES and its partners, the energy needs of the Dominican Republic.

“This new contract underscores TotalEnergies’ leadership in the LNG sector and our commitment to supporting the island’s energy transition. It will be a natural outlet for our US LNG supply which will progressively increase.”

The French giant underlines that the project contributes to the energy transition of the North American country by reducing its dependence on coal and fuel oil through the use of a less carbon-intensive energy source, as natural gas is often described as a transition fuel.

This LNG assignment comes shortly after TotalEnergies signed a multi-year SPA with NextDecade for LNG from an export project in Texas, United States.

The deal is subject to a positive final investment decision (FID) on the fourth train at this U.S. LNG export project.