Eric Watkins
Senior Correspondent
LOS ANGELES, Oct. 16 -- Puerto Rico's power utility AEE has awarded Sweden's Skanska a $66 million contract to build the 68-km, 20-in. Gasoducto del Sur natural gas pipeline from the EcoElectrica LNG terminal at Penuelas to the combined cycle plant in Salinas.
Spain's Grupo Gas Natural signed a contract in April allowing AEE to use the EcoElectrica LNG plant at Penuelas. Under the contract, which runs until 2020, AEE can receive, store, and regasify LNG, as well as transport it as gas.
AEE is waiting for authorization from the state environmental authority approving construction of the pipeline, which is scheduled to be in service in 2008. AEE also is awaiting approval for conversion of the Aguirre combined cycle plant to the use of gas instead of bunker fuel.
Contact Eric Watkins at [email protected].