ARLINGTON, Va.--(BUSINESS WIRE)--The AES Corporation (NYSE: AES) today inaugurated AES Colón, a 381 MW combined cycle power plant and the first liquified natural gas (LNG) terminal in Central America. The plant and regasification terminal are expected to begin commercial operations on September 1, 2018 and the LNG tank, which will be the largest in the Caribbean, is expected to begin operations on schedule in the second half of 2019. The combined facility, which represents a $1.15 billion investment, satisfies a growing need for natural gas in Central America and the Caribbean and will provide an alternative to oil-fired power generation. AES Colón will expand the use of LNG exports from the United States, to drive economic development and shape a cleaner, more cost-effective energy future in Central America and the Caribbean.
“The inauguration of AES Colón is a significant step toward diversifying the energy mix in Central America and the Caribbean, introducing cleaner alternatives in Panama and beyond,” said Andrés Gluski, AES President and Chief Executive Officer. “We expect that the entry of low-cost, U.S. LNG will transform the Central American energy sector, much as it has in the Dominican Republic. This facility is the latest example of how innovation is driving a cleaner energy future on a global scale.”
AES Colón will provide a cleaner alternative to petroleum-based fuels in Central America and the Caribbean. Initially, AES Colón will use 20 Trillion Thermal British thermal units (TBtu) annually, with U.S. gas exports totaling roughly $140 million. The LNG terminal has a capacity of 80 TBtus, creating the total potential for more than half a billion dollars per year in U.S. gas exports. The 60 TBtus of excess capacity available through AES Colón will allow for distribution across Central American countries for electricity generation, commercial and industrial customers, transportation and bunkering.
AES brings more than 15 years of experience in LNG terminal operation to Colón, with a similar generation facility and LNG terminal in the Dominican Republic that has contributed significantly to the sustainability of the energy sector. The generation facility and LNG terminal have helped avoid approximately 4 million tons of carbon dioxide emissions that would have otherwise been emitted by using imported petroleum products to generate electricity while saving the country hundreds of millions of dollars per year.
AES Colón was completed in 27 months, and during construction, the project created more than 2,500 jobs. Once in operations, the facility will create about 200 jobs.
As a leading sustainable energy company, AES’ diverse combination of generation sources creates the strength and flexibility to adapt to local and regional market needs, maximize power plant efficiency, and provide reliable and affordable electricity, paving the way for a cleaner energy future.
The AES Corporation (NYSE: AES) is a Fortune 500 global power company. We provide affordable, sustainable energy to 15 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 2017 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 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’ 2017 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 2017 Annual Report on Form 10-K dated on or about February 26, 2018 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.