AES Awarded Panama’s First Natural Gas-Fired Generation Plant
September 11 2015 - 8:00AM
Business Wire
The AES Corporation (NYSE:AES) announced today that, its
subsidiary, Gas Natural Atlantico S. de R.L., has won a competitive
bid process conducted by the Electric Transmission Company, SA
(ETESA), the state’s electric transmission company, to supply 350
MW of new capacity. The project will include the construction of a
350 MW combined cycle natural gas-fired plant with a 10-year Power
Purchase Agreement (PPA), and a 170,000 m3 LNG storage tank and
regasification facility, to supply gas to the plant, as well as to
potentially serve growing demand for natural gas in Central
America.
“Together with our local partner, Inversiones Bahia, we are very
happy to announce that we were the lowest bidder for ETESA’s
10-year PPA for 350 MW. We will construct a low emission combined
cycle power plant, which will be fueled by LNG via the new
regasification terminal on Panama’s Atlantic coast,” said Andrés
Gluski, AES President and Chief Executive Officer. “Building a
state of the art LNG regasification terminal near the entrance of
the enlarged Panama Canal will enable Panama to become an energy
hub for Central America and the Caribbean, by supplying lower cost,
reliable and sustainable fuel, which will benefit many sectors,
including electricity generation, transportation and ship
bunkering.”
AES expects to sign the 10-year PPA by the end of 2015. The
project is subject to customary regulatory approvals including, but
not limited to, an environmental impact assessment study and a
definitive generation license. These approvals and financial close
are expected before commencement of construction. Construction
of the project is expected to begin in early 2016, with commercial
operations expected in 2018. The total project cost is expected to
be in the range of $800 to $900 million, which will be financed
with a combination of non-recourse debt, equity from partners and
AES equity of up to $210 million. AES entered Panama 16 years ago
and since then has made a total investment of more than $1.3
billion in the country. Currently, AES owns 777 MW (471 MW on an
ownership-adjusted basis) of mostly hydroelectric generation.
About AES
The AES Corporation (NYSE:AES) is a Fortune 200 global power
company. We provide affordable, sustainable energy to 18 countries
through a diverse portfolio of distribution businesses as well as
thermal and renewable generation facilities. Our workforce of
18,500 people is committed to operational excellence and meeting
the world’s changing power needs. AES’ 2014 revenues were $17
billion, and we own and manage $39 billion in total assets. To
learn more, please visit www.aes.com. Follow AES on Twitter
@TheAESCorp.
Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933 and of the Securities
Exchange Act of 1934. Such forward-looking statements include, but
are not limited to, those related to future earnings, growth and
financial and operating performance. Forward-looking statements are
not intended to be a guarantee of future results, but instead
constitute AES’ current expectations based on reasonable
assumptions. Forecasted financial information is based on certain
material assumptions. These assumptions include, but are not
limited to, our accurate projections of future interest rates,
commodity price and foreign currency pricing, continued normal
levels of operating performance and electricity volume at our
distribution companies and operational performance at our
generation businesses consistent with historical levels, as well as
achievements of planned productivity improvements and incremental
growth investments at normalized investment levels and rates of
return consistent with prior experience.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES’ filings with the Securities and Exchange
Commission (the “SEC”), including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7:
Management’s Discussion & Analysis in AES’ 2014 Annual
Report on Form 10-K and in subsequent reports filed with the SEC.
Readers are encouraged to read AES’ filings to learn more about the
risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Any Stockholder who desires a copy of the Company’s 2014 Annual
Report on Form 10-K dated on or about February 25, 2015 with
the SEC may obtain a copy (excluding Exhibits) without charge by
addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Form 10-K may
be obtained by visiting the Company’s website
at www.aes.com.
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The AES CorporationInvestor Contact:Ahmed Pasha,
703-682-6451orMedia Contact:Amy Ackerman, 703-682-6399
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