ARUBA, ORANJESTAD – Last Thursday, January 14, 2021, the RDA and Eagle LNG signed a letter of exclusivity for the development of a gas facility in Aruba.
Last December, Eagle LNG and Quanten LLC, signed with RdA to continue the negotiations to reach an agreement for Quanten LLC to work on the reopening of the refinery and for Eagle LNG to work on new developments.
Prime minister Evelyn Wever - Croes stated that the signing of this agreement, will stimulate new economic development for Aruba, create jobs, and generate foreign exchange. Also present at the signing ceremony were Sean Lalani, president of Eagle LNG, Allen S. Greenberg, Consul General of the United Staes, and Reynold Arends, RdA director.
According to the prime minister, once the agreement materializes completely, the RdA no longer needs to purchase heavy fuel oil to supply the WEB, but instead will supply them with gas.
Gas has many benefits, it will stabilize the production costs for water and electricity resulting in reduced tariffs, it is better for the environment since it is cleaner compared to heavy fuel oil. It also brings economic development as the company will be established in Aruba and will create new jobs considering their plans for gas export. This will help our foreign exchange reserves, economic growth, and generate more income for the Government.
US Consul General, Greenberg stated that he was pleased with the positive impact US investors will have on Aruba. One thing that the pandemic taught everyone is that no country can depend only on a single industry. This new development will create economic diversification. This investment not only benefits this company or sector, but also the Caribbean and region.
According to RdA director Reynold Arends, the signing of this 'Exclusivity Agreement' means that Eagle LNG can start with the project in the meantime while they are in the process of reaching a 'definite agreement'. The definite agreement will allow us to reduce fuel costs and reduce water and electricity tariffs.
Eagle LNG president Greenberg indicated that they have been seeking investment opportunities for a while in the Caribbean region and the signing of the exclusivity agreement means that they can finally start investing in Aruba. The processing of the necessary equipment for the terminal and the permanent process will start immediately. They aim and hope to be able to start in the summer of 2021 or just before the summer. Considering the current development in the cruise industry and the fact that many regional countries are switching to Liquefied Natural Gas (LNG), the terminal in San Nicolas is perfect for additional expansions and opportunities in the form of economic development and jobs in Aruba.
The prime minister thanked all involved in the process, the RdA for their negotiation efforts including the consultations with the WEB on the subject. She is also very grateful to the Consul General of the USA, Greenberg, which merely two and a half years ago she met when on a business trip with the prime minister of Curacao to Washington, where she requested the help of Washington in the development of our economy.
'Today we see the results of our efforts. I am very happy with the signing ceremony, it was a good meeting and I am very optimistic and positive'.