TotalEnergies has signed an agreement with Energia Natural Dominicana (ENADOM), a joint venture between AES Dominicana and Energas in the Dominican Republic, for the delivery of 400,000 tons of LNG per year starting in mid-2027. The deal is subject to the finalization of the sales and purchase agreements (SPA) and covers a 15-year period with the price indexed to Henry Hub.
The deal will enable ENADOM to supply natural gas to the 470-MW combined-cycle power plant, currently under construction, which will increase the the Dominican Republic's electricity generation capacity. The facility is in Punta Caucedo in the Boca Chica region in strategic proximity to the AES/ENADOM LNG terminal with a storage capacity of 250,000 m3.
The project will also reduce the Dominican Republic’s dependence on coal and fuel oil, transitioning most of its power generation to cleaner-burning natural gas. The operator has not ruled out the addition of post-combustion carbon capture systems to enhance the sustainability of the plant.
“We are pleased to have signed this agreement to answer, alongside AES and its partners, the energy needs of the Dominican Republic,” said Gregory Joffroy, senior vice president, LNG at TotalEnergies. “This new contract underscores TotalEnergies’ leadership in the LNG sector and our commitment to supporting the island's energy transition. It will be a natural outlet for our US LNG supply which will progressively increase.”
Separately, TotalEnergies has signed an SPA with NextDecade to buy 1.5 mtpa of LNG from the future Train 4 liquefaction unit at the Rio Grande LNG facility. The SPA, of a duration of 20 years, is subject to NextDecade taking a positive final investment decision (FID) on Train 4.
"We are pleased to sign with NextDecade a new 1.5-mtpa SPA from the future Train 4 of Rio Grande,” said Joffroy. “This agreement will enable NextDecade to progress towards the FID of the project and notably to start its financing process. Once effective, the agreement will help strengthen TotalEnergies' position to serve its customers with a competitive supply, as the leading exporter of LNG from the United States.”
TotalEnergies holds a 16.7% stake in the first phase of the Rio Grande LNG facility, which comprises three LNG trains currently under construction in southern Texas. TotalEnergies previously agreed to purchase 5.4 mtpa of the approximately 17.5 mtpa produced by the first phase, which is expected to start up in 2027. TotalEnergies also holds a 17.5% stake in NextDecade, Rio Grande’s shareholder and operator.
