Houston-based Eagle LNG Partners on Dec. 9 signed a long-term supply contract with WEB Aruba (WEB), the local power and water utility in Aruba, which will see the development of a LNG receiving and regasification terminal on the island. 

The new terminal, to be located at an industrial location in San Nicolas, will act as WEB’s LNG receiving and regasification terminal for its Balashi 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 low prices, while enabling the introduction of more intermittent renewable electricity generation on the island.

"LNG fits in WEB Aruba's vision of cleaner, greener and fuel oil free production and we are working towards sustainable water desalination and energy production and supply," said WEB Aruba AI. CEO, Serapio (Laty) Wever. "We welcome LNG as a transition fuel that eventually should lead to a mix of 50% renewable energy sources and 50% alternative fuels."

The development involves an investment of around $100 million in Aruba and could create up to 100 local jobs, in addition to paving the way for a significant reduction in harmful emissions by moving to LNG from heavy fuel oil or diesel. 

Sean Lalani, President of Eagle LNG, said, "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 U.S. 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," said Glenbert Croes, Aruba Minister of Labour, Energy and Integration.