French and US utilities have joined together to sell liquefied natural gas (LNG) in Central America.
ENGIE and AES will utilise the Costa Norte LNG terminal currently under construction in Panama.
The ownership of the site is split 50/50 between AES and Panama firm Inversiones Bahía.
The total capacity of the terminal is approximately 1.5 million tonnes per annum (mtpa), of which a quarter will be used to supply the 380MW AES combined-cycle gas turbine (CCGT) currently under construction at the site.
ENGIE will supply up to 0.4mtpa of LNG to the CCGT plant from 2018.
The majority of remaining capacity at the terminal will be used by the joint venture to market and sell to third parties, including up to 0.7mtpa of LNG sourced from ENGIE.
The companies says natural gas offers a cleaner and more affordable alternative to oil-fuelled power generation.
This joint venture further strengthens the deal signed by the companies last year to sell LNG together in the Caribbean.