“The natural gas surge in the Dominican Republic, led by AES Dominicana, is a game-changer that is creating new opportunities.
“Cheers to Our Success! —Merco 2024 has recognized AES Dominicana as the foremost powerhouse in the energy sector of the Dominican Republic, and we have also secured a position among the Top most reputable communications teams. This prestigious accolade, endorsed by KPMG a testament to our unwavering commitment to sustainability, excellence, and responsible energy production. Ricardo Manuel Falú serves as the Executive Vice President, Chief Operating Officer, President of the New Technologies Strategic Business Unit at the AES Corporation.
Greetings, everyone! Wishing you a wonderful Wednesday filled with abundant health and love!
In a recent burst of insight—a vuelapluma—(1) concerning the ‘Syria narrowed future’ case, highlighted by the blog on Sunday the 9th, it becomes clear that the complex bond between Turkey’s Prime Minister, Recep Tayyip Erdoğan, and Russia’s President, Vladimir Putin, plays a crucial role in this unfolding narrative. The multifaceted factors that determine a country’s geopolitical power, with financial strength playing a key role, are crucial to understand. The significant influence of natural gas on the global energy markets cannot be overstated, and the decisions of leaders like Putin and Erdoğan carry weighty consequences for the energy industry.(2) Turkey’s strategic position as a conduit for natural gas between Asia and Europe could greatly affect regional economies. Despite its importance, the robust relationship between Erdoğan and Putin and the geopolitical significance of Syria for Russia were not addressed. The future of Syria remains enigmatic, potentially mirroring Afghanistan’s turbulent history and its issues with Al-Qaeda. The only certainty in these times is the global conflict that is directly influencing fuel supply routes. Other pressing issues, such as the volatile situation in South Korea, must also be taken into account. Moreover, the sudden collapse of the Al-Assad regime is a development that warrants attention…(3) That say, the fact is today. One week before the HTS offensive aimed at overthrowing Al-Assad, the leader of the group, Abu Mohammed al Jawlani, convened with the intelligence directors from Turkey, the United States, Qatar, Saudi Arabia, and likely the United Arab Emirates in the southern region of the country, which serves as the operational base for the rebel faction. This meeting marked a departure from previous discussions that had only included Turkey, Russia, and Iran. During this gathering, al Jawlani was informed that Russia would not extend its protection to Al-Assad, as the Kremlin’s strategic interests—including its air and naval bases, as well as its oil and gas concessions—would remain unaffected (4). And the nation’s political future remained in a precarious grey area, also known as No Man’s Land. (5)
Let’s take a moment to highlight the remarkable natural gas molecule—an invisible, odorless, and non-toxic gem in the energy landscape. This fascinating compound, primarily composed of methane, features a straightforward structure with just one carbon atom and four hydrogen atoms. Whether hailed as a hero or criticized as a villain, it’s clear that natural gas will stay a prized resource in the energy sector for many years to come.
Well, the American continent is marked by a multifaceted geopolitical landscape, particularly observable in the northern region, where the border reflects the divergent interests linked to tequila and bourbon. Central America has undergone considerable turmoil, mirroring the volatility of its volcanoes in recent decades. In South America, the foundations of democracy have been firmly laid.; but, two nations continue to face challenges related to post-colonial instability. Just, a single country appears to have “temporarily” misplaced its sense of social cohesion. Despite these difficulties, the regions a promising environment for investment compared to other global contexts.
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(1) -A vuelapluma: adverb: quickly ⧫ without much thought
(2) https://www.themoscowtimes.com/2024/12/09/russia-takes-a-political-military-and-economic-hit-as-syrias-assad-falls-from-power-a87266
(3) https://www.yahoo.com/news/kremlin-says-syrias-al-assad-115810417.html?
(4) https://cnnespanol.cnn.com/video/siria-damasco-rebeldes-regimen-caido-bashar-al-assad-conclusiones-tv (Profesor Joseph Hague)
(5) https://www.cato.org/multimedia/power-problems/fall-assad-syrias-uncertain-future
You can’t possibly deny me…
Have a wonderful day filled with good health, happiness, and love…
Drill, baby, drill…
Source: EIA
In 2022, the United States reported a substantial volume of natural gas reserves, totaling around 691 trillion cubic feet (Tcf), as indicated in the United States Crude Oil and Natural Gas Proved Reserves report. This figure, noted as of December 31, 2022, and categorized as wet gas, is indeed significant. Nonetheless, this places the United States in the fourth position globally in terms of natural gas reserves, trailing behind Russia, Iran, and Qatar.
South America: An Emerging Leader in Drilling Ventures…
Source: Media
South America is witnessing a revival as a significant site for drilling activities, boasting an estimated 13.4 trillion cubic meters of commercially viable natural gas reserves. Venezuela is at the forefront, possessing the largest proven reserves on the continent, which amount to 203 trillion cubic feet, positioning it ninth globally and surpassing both the United Arab Emirates and Nigeria. It is noteworthy that over 80% of these reserves are associated with oil deposits. As the global focus shifts towards sustainable energy solutions, Venezuela’s extensive natural gas reserves represent a critical asset for fulfilling international energy demands.
In addition, Brazil, under the leadership of President Inacio Lula da Silva, who is currently recovering from emergency cranial hemorrhage surgery in São Paulo, holds the second-largest reserves in South America, estimated at 14.4 trillion cubic feet, primarily situated in offshore pre-salt fields that are linked to oil extraction.
Argentina, led by President Javier Milei, has seen its proven natural gas reserves increase to 15.4 trillion cubic feet, marking an 11% rise from the previous year and a threefold increase over the past decade. This growth is largely attributed to the advancement of the Vaca Muerta shale formation, which gained momentum in 2013 following the nationalization of YPF, previously owned by Repsol, during Cristina de Kirchner’s administration.
Conversely, Bolivia, which was once a significant player in the southern cone natural gas market, is currently experiencing a decline in its fossil fuel sector. The country’s proven reserves are estimated at 9 trillion cubic feet, a decrease from 11 trillion a decade ago, indicative of a broader downturn in the industry. As of June 2023, Bolivia’s natural gas production was reported to be 1.25 billion cubic feet.
Caribbean Natural Gas: A Vital Resource in Unpredictable Times…
Artwork by Germán & Co
Despite facing severe hurricanes, the Caribbean’s natural gas industry continues to thrive. In a landscape characterized by unpredictable shifts, global conflicts affecting the energy market, the region is emerging as a key energy player with considerable potential. At the hearth to this transformation is natural gas, poised to reshape the Caribbean’s energy landscape. Currently, other areas of the world are facing significant risks related to drilling and transporting fuel. For instance, a tanker bound for Syria with Iranian crude oil reversed course following the downfall of Assad, as reported by BNN Bloomberg, yesterday.
The region stands on the brink of an energy revolution, timely driven by the recent discoveries of natural gas in Guyana and Suriname. These findings have sparked economic growth, especially in Guyana. As Guyana reaps the benefits of these developments, Suriname is poised to leverage its untapped potential.
Trinidad and Tobago, traditionally a powerhouse in the Caribbean energy sector, produces approximately 2.58 billion cubic feet per day (bcf/d) of natural gas. However, signs indicate a decline in traditional oil and gas production. The Caribbean energy sector’s success extends beyond individual national accomplishments, highlighting the significance of regional collaboration. The strategic alliance between Guyana, Suriname, and Trinidad and Tobago is crucial, providing significant economic and operational advantages, according to Melanie Chen, Founding Chair of the Caribbean, in an interview conducted in June of this year.
She stated that natural gas is increasingly acknowledged as a crucial transitional fuel that can aid in the move towards a more sustainable energy future while maintaining economic stability. By combining their resources and knowledge, these countries can maximize their natural gas reserves to create a more robust and integrated energy network, lessen dependence on imported fuels, and lower energy costs for their citizens.
Furthermore, Chen underscored the significant economic impact of natural gas in the Caribbean, observing that the exploitation of these resources could generate employment, boost industrial expansion, and improve energy security. She stressed that the prompt commercialization of oil and gas reserves is critical for the sustainable economic progress of the Southern Caribbean.
Natural gas serves as a cleaner alternative to traditional fossil fuels and aids in the integration of renewable energy by providing grid stability and backup power. Its dual role is essential for the region’s energy strategy, offering immediate economic benefits and supporting long-term sustainability goals.
Transitioning to a natural gas-focused future presents challenges, including significant infrastructure investments for extraction, processing, and distribution. Upgrading transmission grids and expanding battery storage are crucial for a modern energy infrastructure.
The high initial costs could be a hurdle, especially for smaller Caribbean nations with limited funds. However, a mix of public and private investments and international cooperation is proposed to fund these projects, emphasizing a comprehensive funding strategy involving government spending, concessional financing, and public-private partnerships.
Natural Gas Expansion: Transforming the Dominican Republic’s Energy Sector…
A natural gas storage facility with a remarkable capacity of 120,000 cubic meters, image courtesy of AES Dominicana.
Introduction to the Voyage of Existence for the Better…
Image…
“Imagine a world where the skies gift us with electrical rainfall, a phenomenon where energy cascades from the heavens, promising to power our dreams and innovations. This is not just a flight of fancy, but a vision of a future where renewable energy is as natural and abundant as the rain that nourishes our earth. In this blog entry, we’ll explore the exciting possibilities of harnessing the power of electrical storms, turning the might of nature into a sustainable source that could light up our cities and homes, and spark a revolution in how we think about and use energy. Join us on this electrifying journey as we delve into the potential of electrical rainfall and its role in powering a brighter, cleaner future. Imagine if we could store all this wonderful energy…
Big shoutout to AES Dominicana for their amazing support and unwavering commitment…
During a rainy season day in 1990, the power of the Caribbean Sea was tangible along the Santo Domingo boardwalk, where it relentlessly battered against George Washington Avenue. The darkness enveloped the city entirely, but amidst it, it was possible to discern the lively chords of merengue resonating from afar. The illumination source emanated from a neighbouring grocery store, which relied on a compact generator to power its lights. The volume of the music was so pronounced that it created the illusion of a live performance, overpowering even the sound of the crashing waves from the sea. As the music persisted, a new song started playing: a renowned bachata by Juan Luis Guerra and his 4.40, featuring the globally recognised lyrics: “I hope it will rain coffee.” The noise maintained its previous volume, serving as a welcome diversion from the stifling heat that surrounded the island. No one could resist swaying their hips to the beat of the music, almost as if it were a necessary response to the scorching heat. A scream can be heard in the distance, —coño— Pancho… The light is coming, as if the dear friend were not seeing the miracle that is life…
Experiencing the phenomenon of —alumbrones— (the light coming), it may be Kafkaesque, but it is not. It is the production of electrical energy in the country. It was critical, if not non-existent, because of its precariousness. It’s because it evoked a profound sense of exhilaration and joy in individuals. When the electric light peeked out miserably. While the light was fleeting, it undoubtedly provided an unforgettable balsam bath. Thus, the scarcity of much-needed electricity in the Dominican Republic was evident. In other words, that was the dark reality of La Hispaniola. With good intentions and hard work, everything can change.
“A single image can communicate a multitude of messages. In this specific inst
AES Dominicana Courtesy
AES Dominicana has made a significant contribution to improving the efficiency of the Dominican Republic’s electricity system by using a variety of fuels and renewable energy sources.
Since its inception in the region, AES has always been committed to making a significant contribution to the energy sector by prioritising the implementation of effective and sustainable changes that benefit all stakeholders.
In 2000, AES demonstrated its commitment to the sustainable growth of the Dominican Republic by establishing AES Andrés. The project included a 319 MW combined-cycle power plant, a liquefied natural gas (LNG) terminal and a gas pipe connecting to the DPP plant.
In the same year, AES also acquired the assets of GENER and a 25% stake in the ITABO S.A. power plant. In the following years, AES maintained its investment in the country by undertaking projects such as the conversion of gas turbines to natural gas and the acquisition of additional shares in ITABO S.A. These initiatives by AES have significantly improved the country’s strategic energy position and reduced its dependence on oil derivatives for electricity generation.
In the 2010s, AES initiated the construction of AES Andrés 2000, a combined-cycle power plant that represents a significant advancement in the country’s energy infrastructure. The company also launched the innovative Closing the Loop project at DPP. This initiative involved the installation of a steam turbine to improve operational effektivtency and support environmental and social progress.
In 2017, AES successfully completed the Closing the Loop initiative at DPP, resulting in a significant increase in capacity and efficiency at the plant. This progress contributed significantly to the country’s environmental and social development goals. AES Dominicana is proud of its remarkable journey and looks forward to continuing its efforts to promote sustainable energy solutions for a brighter future.
Indeed, the AES Dominicana family is experiencing…
Since 2014, AES has implemented a long-term strategy to incorporate local partners to support the expansion and strengthening of the business and accompany the growth of the energy industry with a sustainability vision, both in the Dominican Republic and Panama.
“We derive immense value from partnering with strong local players who provide valuable support as we transition our businesses in both markets,” said Juan Ignacio Rubiolo, executive vice president and president of AES’s Energy Infrastructure Strategic Business Unit.
The first step began on September 3, 2014, when AES Dominicana forged a strategic partnership with local entities Estrella and Linda in New York. Estrella and Linda acquired a minority stake in the energy company.
Integrating Estrella and Linda into the AES Dominicana family is a strategic move and a powerful symbol of our shared vision and commitment. This alliance is not just about improving the electricity sector in the Dominican Republic but about ushering in a new era of national development across various productive industries.
The earnest dedication of the signatories to contribute to the resolution offers a promising perspective for the future of the energy sector in the Dominican Republic.
The collaboration between Estrella and Linda is a pivotal element of AES’s comprehensive long-term growth strategy in the Dominican Republic. This strategy, presented to the Dominican Republic authorities in December 2012, is a testament to our steadfast commitment to the country’s energy sector. It is a commitment to a secure and prosperous future for the Dominican Republic, underscoring our unwavering presence.
The signing ceremony was graced by key figures in the energy sector, including Andrés Gluski, the Global President and CEO of AES Corporation; Edwin De Los Santos, the President of AES Dominicana; Manuel Estrella, the President of Estrella; and Felix García, the President of Grupo Linda, who served as delegates for the new collaborators, symbolizing the unity and shared vision of all parties involved.
The AES Dominicana group’s integration of ENANDON and API Popular marks not an end, but the commencement of a new and promising chapter in its continuing saga of success.
In December 2023, Energy Central recognized outstanding contributors within the Energy & Sustainability Network during the ‘Top Voices’ event. The recipients of this honor were highlighted in six articles, showcasing the acknowledgment from the community. The platform facilitates professionals in disseminating their work, engaging with peers, and collaborating with industry influencers. Congratulations are extended to the 2023 Top Voices: David Hunt, Germán Toro Ghio, Schalk Cloete, and Dan Yurman for their exemplary demonstration of expertise. – Matt Chester, Energy Central
Gratitude is a vital aspect of our existence…
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You can’t possibly deny me…
Have a wonderful day filled with good health, happiness, and love…
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Natural Gas Terminal AES ANDRES, located in the Dominican Republic. Image provided by AES Dominicana.
Andrés Gluski, President and CEO of AES, articulated this perspective during the World Economic Forum held in Davos, Switzerland, in January 2023, stating, “I am confident we will need natural gas for the next 20 years.” He further emphasized, “We can start blending it with green hydrogen today.”
AES Colon Natural Gas Terminal – Panama
AES Panamá Complete Transformation…
Panama is home to one of the world’s most significant maritime routes, with the Panama Canal serving as crucial point that necessitates a supply of electricity for its operation However, the unfortunate issue with Panama’s electricity system is that it relies almost entirely on hydroelectric power. Water this valuable resource, can unfortunately be more expensive fuel, presenting not a question of cost but also of scarcity, further worsened by the severe drought the region. This situation poses serious challenges for the country as the reliability of the supply is vital to maintaining the operation of the canal and, consequently, the Panamanian economy.
On the other hand, over 7,000 miles away, vessels transporting containers through Egypt’suez Canal are either awaiting naval escorts or completely avoiding the passage, opting instead for a significantly longer voyage around South Africa. Ship operators are concerned that their crews may be endangered during journeys the Red Sea due to or drone attacks from a Yemen-based rebel group.
The issues affecting the Suez Canal are geopolitical, while those impacting Panama are climate-related; however, both situations are disrupting global trade. Cargo through Suez and Panama canals have decreased by more than a third. So, hundreds of vessels have rerouted to longer paths, leading to delivery delays, increased transportation costs, and economic damage to local communities.
It is easy to conclude: Two Canals, Two Major Problems — Global Shipping Mess.
The drought in Panama has in over 50 ships waiting to cross the Panama Canal on recent day, including tank transporting propane and cargo ships with food This prolonged drought has compelled the canal’s operator to reduce number of, leading to increased waiting. Consequently, the tolls that ships are required pay have risen to approximately eight times their normal rates.
AES has been operational in Panama since 1999, following its successful acquisition of international tenders for the concessions of the Bayano La Estrella and Los V hydroelectric power plants. In 2018, leveraging its extensive experience in natural gas from the Dominican Republic, AES initiated the construction of the Colón power plant. This facility is significant as it represents the first Liquefied Natural Gas (LNG)-fired power plant in the region, with a generation capacity of 381 MW. The plant began operations in 2019, thereby establishing the inaugural hub for LNG in Panama and Central America, which features a 180,000 m³ storage tank and a reception terminal for maritime vessels.
Panama has established a 20-year fuel supply contract at a stable and competitive market price through the Generadora Gatun project, a natural gas-fired power generation initiative that commenced construction in March of this year. This contract is projected to yield a 20% reduction in costs compared to current market prices, utilizing natural gas sourced from the United States, the world’s leading exporter of liquefied natural gas, alongside Qatar, thereby facilitating the provision of the most favorable pricing.
When considering the financial benefits of this new investment in conjunction with the savings generated by AES Colón, a 381 MW natural gas facility inaugurated in 2018, the total economic advantage for the country exceeds US$150 million annually when compared to electricity generation reliant on fuel oil and liquefied natural gas at prevailing market rates, amounting to approximately US$3 billion over a 20-year period. Furthermore, both investments are anticipated to significantly mitigate CO2 emissions, collectively reducing them by over 2.2 billion tonnes per year, as natural gas is recognized as a considerably cleaner energy source.
Today…
Houthi Attacks Turn Back the Clock for Shipping as Costs Pile Up
“The transport route around the southern tip of Africa was once little used — but freighters are now forced to take it and are charging higher rates.
The New York Times by Peteravis and Liz Alderman Peter Eavis reported from New York, while Liz Alderman reported from Piraeus, Greece.
https://www.nytimes.com/2024/12/11/business/houthi-red-sea-attacks-shipping-lanes-africa.html
