Houston-based Eagle LNG Partners has signed a deal with Curacao’s utility Aqualectra to supply liquefied natural gas to the Dutch Caribbean island.
Aqualectra and Eagle LNG signed a heads of agreement on April 7, making this the first step towards negotiating LNG supply, according to a joint statement released last week.
The head of agreement follows a “request for information” Aqualectra had issued last year. The firm received five non-binding proposals and chose Eagle LNG as the preferred bidder for LNG supply to Curacao, the statement said.
Aqualectra and Eagle LNG would now work to finalize negotiations by mid-year.
Following the conclusion of the talks and approvals, Aqualectra would use the supplies for fueling the production of water and electricity in Curacao.
This would result in lower production and maintenance costs, which ultimately means lower electricity and water prices for the people of Curacao, the statement said.
Eagle LNG, owned by the private equity firm Energy & Minerals Group, currently offers its services in Aruba and will build a regasification terminal there, but the firm also has projects in other Caribbean islands such as Antigua.
This creates a bridge between Aqualectra and the management of utilities in Aruba for future collaborations between the two countries as well as the other neighboring islands applying LNG as a fuel for power generation, the statement said.