France's TotalEnergies has signed an agreement to supply 400,000 tpy of liquefied natural gas (LNG) to Energia Natural Dominicana (Enadom) to power a future electricity plant, part of the Dominican Republic's plan to rely less on fuel oil and coal.

The deal is set to begin in mid-2027 and run for 15 yr, with the price indexed to the U.S. benchmark Henry Hub, TotalEnergies said in a statement.

The French oil major said the Caribbean island nation was a "natural outlet" for some of the U.S. LNG supply it has contracted to buy, which will reach 15 MM tonnes by 2030.

The Dominican Republic is expected to increase its share of natural gas and renewables to meet legal requirements to reduce carbon emissions by 2030, according to the International Energy Agency.

Enadom, a joint venture between Energas and AES Dominicana, will use the LNG to supply a 470-megawatt (MW) combined-cycle power plant currently under construction, according to the statement.

TotalEnergies has stepped up its efforts to sign LNG contracts with prices linked to the U.S. benchmark, most recently in India and Asia, which allows the company to pass on costs should Henry Hub prices rise or fall compared to other markets it supplies.