AES launches integrated LNG-to-power project in Panama

Monday, 03 September 2018

The integrated LNG import and power generation project will help reduce the dependency of Central American countries on oil-fired generation. Fuel oil, a comparatively expensive energy source, is increasingly replaced by cleaner-burning natural gas.

Built at the entrance of the Panama Canal, the AES Colón project includes a CCGT, driven by 6F.03 gas turbines, with a 10-year power purchase agreement, and a 180,000 cbm LNG storage tank and regasification facility, to supply gas to the plant.

The CCGT at the AES Colón regas and power generation venture was build in just 27 months, and during construction, the project created more than 2500 jobs. Once fully up and running, about 200 jobs will be needed to support the plant’s continuous operation.

“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,” commented AES President Andrés Gluski. “We expect that the entry of low-cost US 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 Corporation is a Fortune 500 company that generates and distributes electrical power. Headquartered in Arlington, Virginia, AES is also exposed to global LNG markets through integrated regasification and power generation such as the one in Colón, Panama.

Venturing into energy storage, AES and Siemens in January 2018 formed a joint venture focusing on lithium-ion powered energy storage. So far, biggest project in Fluence's portfolio is a 100–400 MWh "power center energy storage project" for Southern California Edison at Los Alamitos, California. Other major projects comprise a 40 MW storage facility on behalf of San Diego Gas & Electric, and install six storage projects across Germany that will provide grid stabilization.