AEE: Gasoducto del Sur permit process wrapping up

Monday, September 10, 2007

Puerto Rican power utility AEE's Gasoducto del Sur natural gas pipeline project is completing the permitting process to begin construction, an international press and special projects official told BNamericas.

AEE earlier this year said pipeline works could begin this quarter. The official could not comment on when works now could begin.

The utility has evaluated the proposals of the three companies pre-selected to build the pipeline and the final report is pending approval, the official said.

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The 42-mile (68km), 20-inch diameter steel pipe will transport gas from the EcoEléctrica LNG plant to the combined cycle plant in Salinas.

In April, AEE and Spain's Grupo Gas Natural signed a contract whereby the latter will allow the utility to use the EcoEléctrica LNG terminal at Peñuelas. The contract entails the reception of LNG ships plus storage and regasification of LNG and transport of natural gas.


Gasoducto del Sur includes the Aguirre combined cycle plant conversion project, which entails converting the 900MW bunker-fueled plant into a natural gas-fired plant to reduce costs.

AEE is securing the environmental permits for the conversion project, which will be carried out in coordination with turbine manufacturer GE (NYSE: GE), the official said.