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AES, a US-based energy company, has reached agreements to sell minority stakes in its liquified natural gas (LNG) businesses in the Dominican Republic and Panama.

The divestitures, collectively valued at $190m, form part of AES’ efforts to expand its partnership with Grupo Linda and establish a new alliance with AFI Popular, a subsidiary of Grupo Popular.

As part of the agreements, AES will sell a 10% stake in its Dominican Republic business to Grupo Linda and AFI Popular.

AES’ operations in the Dominican Republic include an LNG regasification terminal with a 160,000m³ capacity storage tank.

The company also has two combined cycle gas turbine plants, as well as solar and wind power plants in the Dominican Republic.

In Panama, AES is selling a 20% stake in AES Colón to Grupo Linda.

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By GlobalData

AES Colón’s operations also include a combined cycle gas turbine, an LNG regasification facility, and a storage tank with the capacity to store 180,000m³ of LNG.

AES said the collective proceeds provided by the sell-down agreements put it on track to achieve the asset sale proceeds target for the year.

Through this deal and others, the company has raised all external funding proposed in its capital plan for 2023, AES said.

Other deals include the termination of the Warrior Run power purchase agreement and the issuance of senior notes worth $900m in May.

AES executive vice-president and president of energy infrastructure strategic business unit Juan Ignacio Rubiolo said: “We gain tremendous value from partnering with strong local players who provide valuable support as we transition our businesses in both markets.

“We have enjoyed a productive partnership with Grupo Linda since 2014, and we look forward to close collaboration with AFI Popular as we continue to unlock new sources of value.”

AES senior vice-president of mergers & acquisitions and strategy Joel Abramson said: “We take a strategic and systematic approach to asset sales.

“With these transactions, we are not only executing on our asset sales programme but also expanding local partnerships that support the strategic objectives of our businesses to maximise value.”