US electric utility AES and its partner Panamanian Inversiones Bahía have inaugurated AES Colon, a 381MW gas-fired power plant and a liquefied natural gas (LNG) receiving terminal in the Colon province in Panama.

The combined cycle power plant, and the LNG storage tank and regasification terminal, represent a total investment of $1.15 billion.

While the new power plant in Panama and the regasification terminal are expected to commence operations in early September, the LNG storage tank, which is to become the largest in the Caribbean with a storage capacity of 180,000m³, is slated to begin operations in the second half of 2019.

The LNG storage tank will supply 75% of its capacity for third-party use across Central America while leaving a 25% capacity for fueling the new gas-fired power plant in Panama. Until the LNG storage tank is ready, the AES Colon facility will operate with a vessel, which will be changed after almost every 45 days.

Andres Gluski – AES President and CEO, commenting on the AES Colon facility, said: “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.

“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 is expected to offer a cleaner alternative to petroleum-based fuels in Central America and also in the Caribbean. The facility will initially use 20 Trillion Thermal British thermal units (TBtu) a year, with US gas exports of around $140 million.

The 60 TBtus of surplus capacity available with AES Colon will enable distribution in the Central American region for power generation, transportation and bunkering, and commercial and industrial customers.

  AES, AES Colon, Andres Gluski, Gas-fired power plant, LNG storage tank, LNG terminal, Panama, Panamanian Inversiones Bahía