AES to divest stake in LNG businesses in Dominican Republic, Panama
New York-listed energy company AES Corp has agreed to minority sell-downs of its LNG businesses in the Dominican Republic and Panama, the company announced on September 26. The sell-down agreements will provide collective proceeds of $190mn to AES.
AES will sell 10% of its business in the Dominican Republic to Grupo Linda and Grupo Popular's subsidiary, AFI Popular. AES' businesses in the Dominican Republic include an LNG regasification terminal, with a 160,000 m3 LNG capacity storage tank, a 319 MW combined cycle gas turbine plant, a 328 MW combined cycle gas turbine, as well as an additional 150 MW of solar and wind power plants.
In Panama, AES will sell 20% of AES Colon to Grupo Linda. AES Colon includes a 381 MW combined cycle gas turbine with an adjacent regasification facility that has a 180,000 m3 LNG capacity storage tank.
The sell-downs are an expansion of AES' existing strategic partnership with Grupo Linda and a new partnership with Grupo Popular's subsidiary, AFI Popular, the company said.
The sell-down proceeds will put the company on track to achieve its asset sale proceeds target for the year, AES said. As a result, AES has secured all external funding included in its 2023 capital plan
"We gain tremendous value from partnering with strong local players who provide valuable support as we transition our businesses in both markets," said Juan Ignacio Rubiolo, AES executive vice president and president, energy infrastructure strategic business unit. "We have enjoyed a productive partnership with Grupo Linda since 2014, and we look forward to close collaboration with AFI Popular as we continue to unlock new sources of value."