U.S. firm Eagle LNG signs deal to set up Aruba receiving terminal

SINGAPORE, Dec 10 (Reuters) - U.S. firm Eagle LNG Partners signed a long-term contract to set up a $100-million liquefied natural gas (LNG) receiving and regasification terminal in Aruba with domestic power and water utility WEB Aruba, the companies said.

The Aruba LNG terminal, located at Refineria di Aruba, the site of an idled refinery in the city of San Nicolas, will serve as WEB's LNG receiving and regasification terminal for its Balashi power plant, the firms said in a statement on Thursday.

LNG from Eagle LNG will be received, stored and re-gasified at the terminal with natural gas delivered to the WEB power plant.

WEB plans to use LNG as a transition fuel eventually leading to a evenly-divided mix of renewable energy and alternative fuels, its chief executive, Serapio Wever, said.

The infrastructure investment in the Caribbean island is about $100 million.

The U.S. embassy in Curacao gave early support to the project through the U.S. commerce department's effort to spur exports while advising on doing business abroad, the statement added.

Reporting by Jessica Jaganathan; Editing by Clarence Fernandez

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