TotalEnergies Secures 15-Year LNG Supply Deal in the Dominican Republic
Why we think this is good
The RNS announcement about TotalEnergies signing a 15-year agreement to supply 400,000 tons of LNG per year to the Dominican Republic is positive news for the company. The contract is a long-term, fixed-price agreement that will support the growing demand for electricity in the country, which should have a favorable impact on TotalEnergies' financials. While the contract value is significant, it is not disproportionate to the company's size. Overall, this news represents a positive expansion of TotalEnergies' business and is a good development for the company.
Key Points
- TotalEnergies signed a 15-year agreement to supply 400,000 tons of LNG per year to the Dominican Republic
- The contract will start in mid-2027 and is indexed to Henry Hub
- The LNG will support a new 470 MW combined-cycle power plant, reducing the country's reliance on coal and fuel oil
Summary
TotalEnergies has signed a 15-year agreement to supply 400,000 tons of LNG per year to Energia Natural Dominicana (ENADOM) in the Dominican Republic. The contract will start in mid-2027 and is indexed to the Henry Hub price. This agreement will enable ENADOM to supply natural gas to a new 470 MW combined-cycle power plant, contributing to the energy transition in the Dominican Republic by reducing its dependence on coal and fuel oil.