TotalEnergies to Supply LNG to the Dominican Republic in Landmark 15-Year Deal
TotalEnergies, a global multi-energy company headquartered in France and listed on major stock exchanges in Paris, London, and New York (ticker symbols: TTE), has taken another strategic step in the liquefied natural gas (LNG) sector by signing a major Heads of Agreement (HoA) with Energia Natural Dominicana (ENADOM). This agreement marks a significant milestone in the Dominican Republic’s energy transition, as it seeks to move away from high-emission fossil fuels like coal and heavy fuel oil toward cleaner, more sustainable energy sources.
Under the terms of the agreement, TotalEnergies will supply 400,000 tons of LNG annually to ENADOM over a period of 15 years, beginning in mid-2027. This LNG supply will be priced using an index linked to the Henry Hub, a key benchmark for natural gas prices in North America.
Who is ENADOM?
ENADOM is a joint venture between AES Dominicana, a subsidiary of U.S.-based AES Corporation, and Energas, another key player in the Dominican Republic’s energy sector. The company plays a critical role in the country’s energy supply chain, providing infrastructure and natural gas distribution for power generation and industrial use. Over the past several years, ENADOM has worked to build a more robust and sustainable energy matrix for the Dominican Republic, investing in facilities and strategic partnerships that promote cleaner and more reliable power generation.
This agreement with TotalEnergies is the latest development in ENADOM’s long-term strategy to increase energy security, reduce environmental impact, and diversify fuel sources for electricity generation.
A Boost for Power Generation in the Dominican Republic
One of the key applications for the imported LNG will be to fuel a 470-megawatt (MW) combined-cycle power plant, currently under construction in the Dominican Republic. This plant will operate using combined-cycle technology, which utilizes both gas and steam turbines to produce electricity more efficiently than conventional thermal power stations.
Once operational, the plant will contribute significantly to the national grid, enhancing the country’s electricity generation capacity. Combined-cycle plants are well-known for their lower emissions and higher efficiency rates, making them a preferred option during energy transitions from coal or heavy fuel oil.
Supporting the Dominican Republic’s Energy Transition
The Dominican Republic has been working to reform its energy sector for over a decade, focusing on sustainability, cost-efficiency, and reliability. In recent years, the government and private sector have emphasized transitioning from imported petroleum-based fuels to more stable and less carbon-intensive sources like natural gas and renewables.
The long-term LNG supply agreement from TotalEnergies aligns closely with these national goals. Natural gas emits significantly less carbon dioxide and particulate matter than coal or heavy oil, while still providing reliable base-load power. This makes it a critical “bridge fuel” as the country continues its transition toward cleaner energy solutions, including solar and wind power.
The new LNG supply will help ENADOM meet growing energy demand while reducing its environmental footprint. It also demonstrates a strong alignment between the Dominican Republic’s policy objectives and the private sector’s willingness to invest in cleaner energy infrastructure.
TotalEnergies’ Expanding LNG Portfolio
For TotalEnergies, this agreement highlights the company’s growing leadership in the global LNG market. Already one of the world’s top LNG players, the company is actively investing in liquefaction projects and long-term supply agreements to serve customers across Europe, Asia, and the Americas.
With U.S.-sourced LNG supplies expected to ramp up over the coming years, the Dominican Republic provides an ideal destination for stable, long-term offtake. By securing this agreement with ENADOM, TotalEnergies ensures a reliable customer base for its LNG exports while supporting regional energy needs in the Caribbean.
“This agreement illustrates our commitment to growing our LNG portfolio and meeting the global demand for cleaner, more reliable energy,” said Gregory Joffroy, Senior Vice President of LNG at TotalEnergies. “We are pleased to support the Dominican Republic’s transition toward lower-carbon power generation. It also demonstrates the relevance of our strategy to develop and diversify our LNG markets.”
TotalEnergies has invested significantly in the upstream and midstream parts of the LNG value chain, including terminals, shipping fleets, liquefaction plants, and regasification infrastructure. The Dominican agreement further cements its presence in Latin America and the Caribbean, regions seen as critical growth markets for LNG.
Statements from ENADOM Leadership
In response to the agreement, Edwin De los Santos, Chief Executive Officer of ENADOM, emphasized the importance of the deal not just from a commercial standpoint, but as a reflection of confidence in the Dominican Republic’s evolving energy landscape.
“This agreement with TotalEnergies is the result of the confidence placed in the Dominican Republic’s energy sector and, specifically, in ENADOM and AES,” said De los Santos. “This partnership supports our ongoing efforts to deliver reliable, cost-effective, and environmentally responsible energy to the country. We are proud to play a leading role in the expansion and diversification of the Dominican energy matrix.”
ENADOM’s position as a pivotal actor in the country’s energy development will be further solidified by this long-term deal, ensuring continuity of supply and enhancing investment certainty for both public and private stakeholders.
Energy Security and Economic Development
The partnership between TotalEnergies and ENADOM also contributes to the broader goals of energy security and economic development in the region. By locking in a reliable and predictable source of LNG, the Dominican Republic is better positioned to withstand fuel supply shocks or global price volatility—issues that have posed serious challenges in the past for small island economies heavily reliant on imported fuel.
Additionally, the infrastructure improvements associated with new power generation and LNG handling facilities are expected to create jobs, stimulate local industry, and provide a backbone for further development of industrial parks, tourism, and manufacturing—all of which depend on a stable and affordable power supply.
Environmental and Climate Implications
Although natural gas is still a fossil fuel, its use in place of coal or heavy fuel oil can result in substantial reductions in greenhouse gas emissions. According to estimates from the International Energy Agency (IEA), switching from coal to gas in power generation reduces carbon dioxide emissions by about 50%, and also eliminates much of the sulfur dioxide and particulate pollution that harm local air quality.
In the Caribbean context, where many countries face the dual challenge of energy reliability and climate vulnerability, such shifts in the fuel mix are especially impactful. While natural gas is not the final solution in the fight against climate change, it is a pragmatic and effective step forward—especially when supported by growing investments in renewables and energy storage.
