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AES Corp Unveils Maiden LNG Terminal in Central America
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The AES Corporation (AES - Free Report) recently inaugurated AES Colon, a combined cycle power plant with a capacity of 381-megawatt (MW), and its first liquified natural gas (LNG) terminal in Central America. The company expects the regasification terminal to be in operation by Sep 1, 2018 and the LNG terminal to come online by the second half of 2019.
Details of the Deal
The company plans to incur a combined capex of $1.15 billion in order to activate the regasification as well as the LNG tank. Once operational, the company’s LNG tank will be recognized as the largest in the Caribbean, which will serve the growing need for natural gas in the Central America and the Caribbean belt. It will also serve as an alternative to oil-fired power generation in the region.
The company also has plans to expand its LNG exports from the United States to Central America and the Caribbean in order to drive economic development in the region with cleaner and more cost-effective energy as it will replace the expensive petroleum-based and oil-based fuels.
The LNG Terminal will have a capacity of 80 Trillion Thermal British Thermal Units (TBTU) and the company will initially use 20 trillion TBTU in all with total U.S. gas export of $140 million. The excess capacity of 60 Trillion TBTU will be available to the company will be used to serve customers across Central American countries for electricity generation, commercial and industrial customers, transportation plus bunkering.
Company’s Recent Projects
The company’s Eagle Valley Combined Cycle Gas Plant in Indiana with a capacity of 671-megawatt came online in April 2018 and it expects to inaugurate the 380-megawatt CCGT and LNG regasification terminal Colon in Panama soon. Currently, the company’s entire 3.9 GW power project is under construction and it anticipates 2 GW to be commissioned by this year-end.
Moreover, the company is making a significant progress on growing its pipeline channel. As of Jun 30, 2018, it signed renewable Power Purchase Agreements (PPAs) of nearly 1.5 gigawatt, bringing the total backlog to 5,725 MW including 5.7 gigawatt projects under development.
Market Outlook
In 2017, the U.S. total export of liquefied natural gas (LNG) reached 1.94 billion cubic feet per day (Bcf/d), up from 0.5 Bcf/d in 2016. Also last year, LNG exports increased and more than 50% of the U.S. export was shipped to Mexico, South Korea and China.
Per U.S. Energy Information Administration (EIA), the United Sates is expected to add nearly 6.05 Bcf/d of new liquefaction capacity by 2021 in addition to 3.5 Bcf/d already in operation at Sabine Pass and Cove Point. Plus, this year, the Elba Island liquefaction project in Georgia is estimated to commission its first 6-10 small modular liquefaction units with a combined capacity of 0.2 Bcf/d.
Per EIA, U.S. liquids and natural gas production and consumption are projected to reach nearly 160 and 120 trillion cubic feet each annually by 2050.
Price Performance
AES Corp stock has rallied nearly 24.1% over a year versus the industry’s decline of 3.2%.
Algonquin Power & Utilities delivered an average positive earnings surprise of 36.39% in the last four quarters. The Zacks Consensus Estimate for current-year earnings has been revised 3% upward to 68 cents per share over the past 30 days.
DTE Energy pulled off an average earnings surprise of 5.69% over the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings has been raised 6.2% to $6.16 per share over the past 30 days.
CMS Energy came up with an average beat of 8.67% in the preceding four quarters. The Zacks Consensus Estimate for current-quarter bottom line has been moved 0.4% north to $2.34 per share over the past 30 days.
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AES Corp Unveils Maiden LNG Terminal in Central America
The AES Corporation (AES - Free Report) recently inaugurated AES Colon, a combined cycle power plant with a capacity of 381-megawatt (MW), and its first liquified natural gas (LNG) terminal in Central America. The company expects the regasification terminal to be in operation by Sep 1, 2018 and the LNG terminal to come online by the second half of 2019.
Details of the Deal
The company plans to incur a combined capex of $1.15 billion in order to activate the regasification as well as the LNG tank. Once operational, the company’s LNG tank will be recognized as the largest in the Caribbean, which will serve the growing need for natural gas in the Central America and the Caribbean belt. It will also serve as an alternative to oil-fired power generation in the region.
The company also has plans to expand its LNG exports from the United States to Central America and the Caribbean in order to drive economic development in the region with cleaner and more cost-effective energy as it will replace the expensive petroleum-based and oil-based fuels.
The LNG Terminal will have a capacity of 80 Trillion Thermal British Thermal Units (TBTU) and the company will initially use 20 trillion TBTU in all with total U.S. gas export of $140 million. The excess capacity of 60 Trillion TBTU will be available to the company will be used to serve customers across Central American countries for electricity generation, commercial and industrial customers, transportation plus bunkering.
Company’s Recent Projects
The company’s Eagle Valley Combined Cycle Gas Plant in Indiana with a capacity of 671-megawatt came online in April 2018 and it expects to inaugurate the 380-megawatt CCGT and LNG regasification terminal Colon in Panama soon. Currently, the company’s entire 3.9 GW power project is under construction and it anticipates 2 GW to be commissioned by this year-end.
Moreover, the company is making a significant progress on growing its pipeline channel. As of Jun 30, 2018, it signed renewable Power Purchase Agreements (PPAs) of nearly 1.5 gigawatt, bringing the total backlog to 5,725 MW including 5.7 gigawatt projects under development.
Market Outlook
In 2017, the U.S. total export of liquefied natural gas (LNG) reached 1.94 billion cubic feet per day (Bcf/d), up from 0.5 Bcf/d in 2016. Also last year, LNG exports increased and more than 50% of the U.S. export was shipped to Mexico, South Korea and China.
Per U.S. Energy Information Administration (EIA), the United Sates is expected to add nearly 6.05 Bcf/d of new liquefaction capacity by 2021 in addition to 3.5 Bcf/d already in operation at Sabine Pass and Cove Point. Plus, this year, the Elba Island liquefaction project in Georgia is estimated to commission its first 6-10 small modular liquefaction units with a combined capacity of 0.2 Bcf/d.
Per EIA, U.S. liquids and natural gas production and consumption are projected to reach nearly 160 and 120 trillion cubic feet each annually by 2050.
Price Performance
AES Corp stock has rallied nearly 24.1% over a year versus the industry’s decline of 3.2%.
Zacks Rank & Key Picks
AES Corp currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space are Algonquin Power & Utilities Corp. (AQN - Free Report) , DTE Energy Company (DTE - Free Report) and CMS Energy Corporation (CMS - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Algonquin Power & Utilities delivered an average positive earnings surprise of 36.39% in the last four quarters. The Zacks Consensus Estimate for current-year earnings has been revised 3% upward to 68 cents per share over the past 30 days.
DTE Energy pulled off an average earnings surprise of 5.69% over the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings has been raised 6.2% to $6.16 per share over the past 30 days.
CMS Energy came up with an average beat of 8.67% in the preceding four quarters. The Zacks Consensus Estimate for current-quarter bottom line has been moved 0.4% north to $2.34 per share over the past 30 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>