New LNG hub provides a new market for US LNG exports with a more cost-effective and sustainable alternative to oil for the region
ARLINGTON, Va.–(BUSINESS WIRE)–The AES Corporation (NYSE: AES) today announced the start of operations of the first liquefied natural gas (LNG) hub in Panama and Central America, located at the AES Colón plant. AES Colón consists of the 180,000 m3 LNG tank and a 381 MW combined cycle power plant, which reached commercial operations in 2018 and had been previously operating with gas from temporary sources.
The commercial operation of the LNG storage facility will allow for the use of LNG throughout the region and establish Panama as the natural gas hub for the Central American region. The use of LNG helps both reduce CO2 (carbon dioxide) emissions and increase renewable energy penetration. Furthermore, LNG conversion lowers electricity costs and provides greater price stability to support economic growth.
“The inauguration of the AES Colón storage facility is a significant milestone toward transforming the Central American energy sector, and enabling a safer and more sustainable energy future,” said Andrés Gluski, AES President and Chief Executive Officer. “Since AES introduced natural gas in the Dominican Republic 19 years ago, it saved consumers more than half a billion dollars a year and avoided approximately four million tons of CO2 emissions annually.”
AES has reserved 80 percent of AES Colón’s terminal capacity for use by industrial and commercial companies in Panama and Central America. The additional contracting potential is expected to serve as a further source of growth for the Company.
The LNG hub at AES Colón was completed in record time of 39 months and has employed more than 2,000 Panamanians since the start of the project. AES plans to build a similar project in Vietnam in the coming years, which will bring many of these same benefits to Southeast Asia.
The AES Corporation (NYSE: AES) is a Fortune 500 global power company. We provide affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world’s changing power needs. Our 2018 revenues were $11 billion, and we own and manage $33 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.
AES 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 the execution of PPAs, conversion of our backlog and 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’ 2018 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 2018 Annual Report on Form 10-K filed February 27, 2019 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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