North Energy Central (NEC) has signed a memorandum of understanding (MOU) with Corporación Dominicana de Empresas Electricas Estatales (CDEEE) to develop a 400MW natural gas-fired power plant in Manzanillo, Dominican Republic.
Located in the northwest province of Montecristi, the power project is expected to cost $800m, which will be supported through private funds.
SCT&E, the parent company of NEC, said residents in the Dominican Republic will not incur any financial expense other than paying for the electricity they use.
Most of the equipment to be used on the natural gas-fired plant and project will be manufactured in the US as part of the free trade agreement between the US and the Dominican Republic.
The MOU will include natural gas-supply contracts based on NYMEX prices, not only to power the plant, but also to meet the CDEEE's needs to convert its oil-based Energy Park.
NEC plans to generate 200MW in 18 months and 400MW in 28 months, alongside developing a liquefied natural gas storage tank within 30 months.
It is expected that the Dominican Republic will save about $300m per year from the power project.
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