Roberto Herrera, general manager of the Compania de Electricidad de San Pedro de Macoris (Cespem) and the Dominican Public Electricity Corporation (CDEEE) have reached an agreement for the conversion of the San Pedro power plant to natural gas without requiring an extension of the present contract with the Dominican government. As reported, international supplier Cheniere Energy has agreed to supply the natural gas needed for the seven years left on the present contract that expires in 2022. Previously, the company required a 20-year extension of the contract on the grounds that natural gas suppliers required the additional time in order to guarantee the supply of natural gas.
At present, Cogentrix has the capacity to generate 300 megawatts with fuel oil, but the cost of generation has been too high and the plant has remained shut most of the time since its construction in 1997. For the Dominican government it has been less costly to pay the US$4.5 million a month penalty than purchase power from the company. The power plant was installed in 1997 when the price of a barrel of oil was at US$28. At current prices, Cogentrix could generate at 12.5 US$ cents per kilowatt. As reported in El Dia, the power plant is now generating power from fuel oil given the lower oil prices.
Cogentrix acepta la conversión a gas sin extensión de contrato