Houston-based Eagle LNG said it has completed a long-term supply contract to establish a liquefied natural gas regasification terminal in Aruba.
Eagle LNG, owned by the private equity firm Energy & Minerals Group, said in a statement on Thursday it has signed the deal with WEB Aruba, the local power and water utility.
The firm said that the infrastructure investment would reach about $100 million in Aruba and would create up to 100 local jobs during construction as well as operating jobs.
“The project confirms Aruba’s growing importance as a regional hub and creates new economic pillars,” Eagle LNG said.
The Aruba LNG terminal will serve as WEB’s LNG receiving and regasification terminal for its Balashi power plant.
Also, the terminal would be located at Refineria di Aruba, an existing industrial location, in San Nicolas, Aruba.
Eagle LNG will supply LNG to the facility which will store and regasify the fuel and deliver it to the WEB power plant.
“Using LNG for power generation takes advantage of WEB’s existing investment in dual-fuel engines improving environmental performance and stabilizing fuel rates at historically low prices, while enabling the introduction of more intermittent renewable electricity generation on the island,” Eagle LNG said.
Aruba and Antigua
Eagle LNG said in January it had signed a deal with Refineria di Aruba (RdA) to build an LNG terminal on the Dutch Caribbean island. Eagle LNG and state-controlled RdA signed a letter of exclusivity on January 14.
Besides this deal, the firm has also earlier this year signed a deal to build Antigua’s first plant which would integrate LNG infrastructure and power generation.
“We are committed to investing in the Caribbean basin and are honored to have signed an agreement for another major LNG project, this time in Aruba,” Sean Lalani, president of Eagle LNG, said.
“Together with recent agreements elsewhere in the Caribbean basin, including the new terminal in Antigua, this further confirms Eagle LNG as the reliable partner of choice for natural gas in the region,” he said.