The terminal will be part of an all-encompassing logistics solution to bring natural gas to the country.
This will be BW’s first investment in the Caribbean. BW said it strongly believes in the future of the Dominican energy market and in the opportunity to partner with InterEnergy to bring a more economical and efficient fuel solution to the country’s power generators and other consumers of natural gas.
According to Celso Marranzini, Dominican Government Minister and CEO of the Dominican state’s electric sector holding company, Corporación Dominicana de Empresas Electricas Estatales (CDEEE), “This announcement is one of the most important developments in the country’s energy market in the last decade.” Mr. Marranzini also pointed out that “the project confirms the significant and sustained interest by large international groups like BW and InterEnergy to invest in the Dominican Republic and, more specifically, in its power sector.”
The joint venture leverages on BW’s unparalleled knowledge of the gas transportation and storage business, and InterEnergy’s unique power sector experience and extensive footprint in the Dominican Republic. The combination of the two partners has proven to be critical to secure long term gas contracts from multiple suppliers and lock in the most competitive gas rates in the market.
BW Group CEO Andreas Sohmen-Pao says: “BW is very excited to partner with InterEnergy Holdings and its market leading companies in the power sector to bring a compelling energy solution to such an important and growing market like the Dominican Republic.”
For InterEnergy, the venture also has significant strategic value given the group’s investments in the Dominican power generation and distribution segment, including integrated utility CEPM serving the Punta Cana and Bavaro resort regions, 300MW generation facility CESPM and generation company EGE Haina.
Rolando Gonzalez Bunster, InterEnergy’s Chairman and CEO adds: “This project reinforces our long term commitment to bringing reliable and cost-effective electricity to the Dominican market by continuing to deploy significant capital in the country, and partnering with global industry leaders like BW.”
Total investments are expected to surpass US$350 million, and completion is scheduled for 2014. Anchor clients for the new terminal, in addition to companies related to InterEnergy, include the Martí Petroleum Group. Marti’s Tropigás division is a leading propane and natural gas distribution business in the Dominican Republic with over 3,000 industrial, commercial and residential propane clients and nearly two-thirds of the local natural gas distribution market. Martí Petroleum Group is also one of the potential co-investors in the terminal, alongside other anchor clients that have been approached by BW and InterEnergy.
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