AES wraps up stake sale in two LNG terminals

US energy company AES has completed the previously announced sale of minority stakes in its LNG import terminals in the Dominican Republic and Panama, while the company also finalized an additional stake sale in the two facilities.

AES announced in September it has agreed to sell minority stakes in its LNG import terminals for $190 million.

These sell-downs of its businesses in the Dominican Republic and Panama expand its existing strategic partnership with Grupo Linda and add a new partnership with Grupo Popular’s subsidiary, AFI Popular, through one of its closed end funds.

The agreements included the sale of 10 percent of AES’ business in the Dominican Republic to Grupo Linda and AFI Popular and the sale of 20 percent of AES Colon in Panama, also to Grupo Linda.

$338 million

However, AES said in a statement issued last week that it has sold additional stakes in the assets.

AES will continue operating its businesses in the Dominican Republic and Panama, with an ownership interest of 65 percent in each business.

The firm closed minority sell-downs of its businesses in the Dominican Republic and its AES Colon business in Panama for proceeds of $338 million.

This includes the transactions announced in September for proceeds of $179 million after purchase price adjustments at closing, as well as sell-downs of additional stakes in the businesses through the expansion of existing partnerships with Grupo Estrella and AFI Popular, through one of its closed-end funds, for $159 million, it said.

In total, AES sold 20 percent of its businesses in the Dominican Republic and 35 percent of AES Colon.

AES’ businesses in the Dominican Republic include an LNG regasification terminal, with a 160,000 cbm LNG capacity storage tank, the AES Andres 319 MW combined cycle gas turbine plant, DPP 328 MW combined cycle gas turbine, as well as an additional 150 MW of solar and wind power plants.

Launched in 2003, the 1.7 mtpa AES Andres LNG terminal provides regasified LNG for power plants as well as customers in the industrial and transportation sectors.

Following the sale, AFI Popular has 10 percent in these assets, while Grupo Linda and Grupo Estrella each hold 5 percent.

As per AES Colon, it includes a 381 MW combined cycle gas turbine with an adjacent regasification facility that has a 180,000 cbm LNG capacity storage tank.

In 2021, AES became the sole owner of Panama’s first LNG import terminal in Colon, following the sale of Inversiones Bahia’s stake in the complex that includes the power plant.

The project came online in 2018 and the LNG tank reached commercial operations in 2019 allowing Panama to become a regional LNG distribution hub.

The duo has invested about $1.15 billion in the 1.5 mtpa facility located near the Atlantic entrance of the Panama Canal.

Grupo Linda now has a 20 percent stake in AES Colon and Grupo Estrella holds 15 percent.

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