Dominican State has received natural gas compensation of US$26.5M

Santo Domingo.- The Ministry of Finance reported that between June and October the Dominican State has received compensation for natural gas insurance coverage greater than double that paid for its acquisition.

In fact, the compensation amount was US$26.5 million, which exceeds the cost of the premium by US$13.7 million.

According to the institution’s statement, the surplus obtained was produced within the framework of the insurance (“call option”) acquired in April of this year to guarantee that the price of this fuel used in electricity generation does not exceed US$3.25 MMBtu.

The acquisition of this insurance is part of the strategic measures undertaken by the Ministry of Finance to ensure the stability of the budget in the face of the upward trend experienced by Natural Gas prices at the time of its contracting.

The rise in international fuel prices at the beginning of the year has deepened in recent months, reaching a price increase of 105% to date.