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The company is actively working to strengthen its renewable energy portfolio amid sustainability initiatives worldwide. Moreover, AES is seeking to achieve net-zero emissions by 2040. Recently, it announced the acquisition of a 49.9% stake in AES Colón, a liquefied natural gas (LNG) plant, increasing its ownership to 100%. LNG emits less carbon than other fuels. “This acquisition will contribute to maximizing the value of our regional LNG business through the development of important synergies and flexibility across our portfolio,” said Juan Ignacio Rubiolo, President for AES’ Mexico, Central America, and the Caribbean Strategic Business Unit.
In September, PetroVietnam Gas signed an agreement with AES to form a joint venture to operate an LNG terminal as part of a $1.3 billion LNG-to-power complex. Analysts expect structural global LNG demand to rise 14% by 2025. Also, the U.S.’ liquefaction capacity could rise by more than half, overtaking Australia by 2024. Given the upbeat demand projections, we think AES should benefit in the long term. However, these developments are not expected to generate immediate returns.
