US firm Eagle LNG has signed a preliminary agreement with state-owned Refineria di Aruba (RdA) to install an LNG receiving and regasification terminal on the Dutch-controlled island.
The LNG will replace heavy fuel oil used for water treatment and power generation in Aruba, while the island will serve as a distribution and bunkering hub for the region, Eagle LNG said. It added that the timing of a final agreement and estimated investment are yet to be determined.
The letter of exclusivity signed with RdA on January 14, “allows us to evaluate engineering and permitting needs that are all part of the steps toward a definitive agreement. Our goal is to begin construction and begin hiring this coming summer,” said an Eagle LNG spokesperson.
RdA selected Eagle LNG as well as US consortium Quanten in December to develop the site of a former oil refinery that US firm Valero dismantled in 2012.
Quanten plans to build a more modern refinery as part of a comprehensive development plan for the island. The refinery and LNG project would help to turn around Aruba’s struggling economy.
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