AES Corporation (AES) says its subsidiary, Gas Natural Atlantico S. de R.L. (Gas Natural), has been awarded a contract by Panama’s Electric Transmission Company, SA (ETESA) to develop a 170,000 m3 liquid natural gas (LNG) storage tank and regasification facility that will support bunkering activities.

“Building a state of the art LNG regasification terminal near the entrance of the enlarged Panama Canal will enable Panama to become an energy hub for Central America and the Caribbean, by supplying lower cost, reliable and sustainable fuel, which will benefit many sectors, including electricity generation, transportation, and ship bunkering,” said Andrés Gluski, President and CEO of AES.

The facility will also include a 350 MW combined cycle natural gas-fired power plant said to include a 10-year power purchase agreement (PPA), which AES says it expects to be signed by the end of the year.

Final approvals, such as environmental impact assessment, and financial close are said to be expected before before construction begins in early 2016.