LatAmOil: Eagle LNG, WEB Aruba sign agreement on LNG terminal

US-based Eagle LNG Partners has struck an agreement with WEB Aruba, the national water and power provider of Aruba, on the construction of an LNG regasification terminal at the site of an existing oil refinery in San Nicolas.

The agreement provides for the parties to work together to build an LNG import and regasification facility at the Refineria di Aruba (RdA) plant, which has been idle for some time. Neither Eagle LNG nor WEB Aruba has revealed the projected capacity of this terminal. However, the US company has signed a long-term LNG supply contract, and the island state’s utility has indicated that it will use the fuel at the Balashi thermal power plant (TPP).

The cost of building the new facility is expected to reach $100mn. The project may create about 100 new jobs during the construction phase, Eagle LNG said, and it will also help Aruba reduce carbon emissions by allowing the TPP to switch from petroleum products to cleaner-burning natural gas.