Overview

The Dominican Republic built an LNG terminal at the port of Andres to reduce the Caribbean country’s reliance on expensive liquid fuels for power generation. The terminal, in Santo Domingo province, was intended to supply fuel for a 319 MW power plant, but as other power plants have since converted to lower-cost gas it now supplies a number of facilities in the area.

Government subsidies keep the price of electricity low and demand for power outstrips supply. Blackouts are common and there is increasing demand for more gas-fired power plants. The popularity of gas is down to the fact that it would replace expensive diesel- and fuel oil-fired plants, which make up around 50% of the country’s power generation.

The Andres terminal is operating at near capacity and, faced with rising demand, the Dominican Republic began construction of a second terminal in February 2014, according to industry publication TradeWinds. The terminal is expected to capitalise on low-cost LNG from plants under construction on the east coast of the United States.

Norway’s BW Gas is partnering with local power companies to build the second terminal at the port of San Pedro de Macoris. The terminal’s design has not been released, although given the involvement of BW Gas it will most likely rely on some form of floating technology - whether a traditional FSRU, a storage vessel or regasification barge.

The Dominican Republic has a long history of exploration for oil and gas, stretching back to 1904, but recent efforts have been patchy and there have been no major discoveries in the last 30 years. Gazprom International was offered the opportunity to engage in offshore exploration and development in February 2012, but there has been little news since. The sedimentary geology appears prospective and the opening up of deepwater resources provides further hope for discoveries.

Page updated: 11/07/2014