U.S.-based North Energy Central (NEC), a unit of Southern California Telephone & Energy (SCT&E), agreed with the Dominican Republic State-owned Electric Utility (CDEEE) to install a 400 MW natural gas-fired power plant in Manzanillo, in the Northwest province of Montecristi.
The estimated $800 million investment for the development of this energy project is supported through private funds. The Dominican Republic will not incur any financial expense other than paying for the electricity they use. Most of the equipment planned to be used on the natural gas fired plant and project is “Made in America,” as part of the free trade agreement between the U.S. and Dominican Republic, thus expanding relationships between the two countries.
In addition to the power plant, NEC has informed sources that the transaction will include natural gas-supply contracts based on NYMEX prices, not only to power the plant, but also to meet the CDEEE’s immediate needs to convert its oil-based Energy Park. The 400 MW generation project will provide relief to the people of the Dominican Republic who currently pay extremely high electric utility rates.