Eagle LNG Partners plans to establish a liquefied natural gas (LNG) receiving and regasification terminal in Aruba with WEB Aruba, the local power and water utility company, under the terms of a recently completed long-term supply contract.
Eagle LNG is a U.S.-based company with operations in Houston, Texas, and Jacksonville, Fla.
The new project highlights Aruba’s growing importance as a regional hub and creates new economic pillars, the companies said. The deal was confirmed during a signing ceremony attended by Glenbert Croes, the island country’s Minister of Labour, Energy and Integration, and WEB Aruba AI CEO Serapio “Laty” Wever.
The Aruba LNG Terminal will serve as WEB’s LNG receiving and regasification terminal for its Balashi power plant, Eagle said. The terminal will be located at Refineria di Aruba, an existing industrial location, in San Nicolas, Aruba, where LNG from Eagle LNG, will be received, stored, and re-gasified with natural gas delivered to the WEB power plant. Using LNG for power generation takes advantage of WEB’s existing investment in dual-fuel engines improving environmental performance and stabilizing fuel rates at historically low prices, while enabling the introduction of more intermittent renewable electricity generation on the island.
The infrastructure investment in Aruba will cost approximately $100 million and create up to 100 local jobs during construction, as well as highly skilled operating jobs with specialized training in critical capabilities required as the world transitions to a net-zero carbon future, the parties said. The project will introduce low-cost, stable energy to the island and enhance its environmental credentials. By moving to LNG from heavy fuel oil or diesel, there will be a reduction in harmful emissions: 30% in CO2, 75% NOx, 90% particulates, and 99% SOx.
“We are committed to investing in the Caribbean basin and are honored to have signed an agreement for another major LNG project, this time in Aruba,” said Sean Lalani, president of Eagle LNG. “Together with recent agreements elsewhere in the Caribbean basin, including the new terminal in Antigua, this further confirms Eagle LNG as the reliable partner of choice for natural gas in the region. The LNG import terminal will result in more environmentally responsible energy supporting the addition of more renewable generation, lower operating and maintenance costs and a stable, historically low-cost, fuel supply.
“Alongside the economic and environmental benefits, the transition to LNG-powered generation will function as a catalyst for new economic pillars in Aruba. We look forward to being a part of Aruba for many years.”
The US Embassy Curacao provided early support for the Aruba project through the US Commerce Department's advocacy program, which encourages US exports while offering counsel on doing business in a foreign country.
“This is an extremely important project for an Aruba that loves its environment, which will produce energy based upon clean energy that will reduce costs of water and electricity to the benefit of all of Aruba,” Croes said.