Bahamas Power and Light headquarters.
By AVA TURNQUEST
Tribune Chief Reporter
aturnquest@tribunemedia.net
THE country was said to be one step closer to lower energy bills and more stable electricity generation with the signing of a memorandum of understanding between Bahamas Power and Light and Shell North America for an integrated LNG gas-to-power project.
However, it is not clear whether consumers will feel the impact of the corporation’s transition to liquefied natural gas (LNG) this term as the project, which features a 220-250 megawatt (MW) power plant is not slated to be completed until the “early 2020’s”.
Shell officials were also unable to offer any estimates on how much it planned to invest on the project, stating it was too early to tell.
“In terms of starting construction,” Mr Moxey said, ”it won’t start until after the PPA has been negotiated, all of the environmental studies, impact assessments, environmental plans have been done. Everything is done in accordance with the planning and subdivisions act and we follow all those processes.
He continued: “And so the hope for us is that we get construction started soon enough so that we can have the plant online by the early 2020’s. Our target goal is sometime before or around 2022 but you never know what may delay the project moving forward.”
Shell, the project developer and independent power producer, will absorb the costs of developing marine infrastructure, and constructing the gas pipeline, LNG terminal and new power plant, according to BPL Chairman Donovan Moxey, who said negotiations will now turn to locking down commercial agreements over the supply rate.
Mr Moxey said negotiations over the power purchase agreement (PPA) will like take around three to four months.
“The MOU (Memorandum of Understanding) is the first step towards a desired long-term power generation pact between BPL and Shell,” Mr Moxey said, “and bringing strategic change to electricity generation and supply in New Providence. The goals are to achieve cleaner power generation, lower cost fuel sources, and a reduction in the cost of electricity generation.”
In the interim, Mr Moxey said the corporation is considering additional assets for the Clifton Pier Power Plant to help stave off load shedding that has become typical of the summer months.
Electricity bills have doubled, and in some cases tripled, for consumers following the series of fires at the Clifton plant that have forced the corporation to rely heavily on its Blue Hills plant to meet generation demands. The Blue Hills plant uses a more expensive fuel mix, Mr Moxey said, noting it requires a higher concentration of automated diesel oil (ADO).
Mr Moxey said BPL was still conducting damage assessments at the Clifton site but had a timeline of early summer to bring more assets online.
While the Shell plant will have an output of up to 250MW, the peak-load requirement for New Providence is around 260 MW. Mr Moxey explained the corporation will still keep some generation assets to maintain “spinning reserves”.
“We will still have some generators,” Mr Moxey said, “albeit they will not be primarily the generation we use to provide power, but we will still have some generation capacity.
“Post-2022 our primary fuel source will be LNG because the other plan that we have is to also retrofit and adapt our generation assets in the Family Islands as well as the ones that we have here in New Providence to run LNG as well.
“And so what would happen those generation assets will be dual fuel generation assets. What we’re looking at is to have the duel fuels to be either LNG or the heavy fuel oil which is the least expensive.”
Mr Moxey said he could not provide an estimate on how much it will cost to carry out the overhaul as the corporation is still evaluating studies for the most cost-effective way to implement its retrofitting programme.
The signing on Friday follows months of speculation as the agreement was initially slated for signing on August 3, but was reportedly sidelined by a BPL boardroom battle that resulted in all directors on the former Board resigning or being removed.
The MOU was signed with Shell Gas & Power Developments BV, and its Country Chairman for English and Dutch Caribbean Mark Regis said the company was proud to have been selected to advance development of a gas to power plant.
Shell was flagged as an LNG pioneer, and a leading industry player with interests at every stage of the value chain, from findings fields and extracting gas to shipping and distribution.
Likened to cooking propane, LNG is billed as a safe, less volatile fuel source that has proven to be on par with other fuels in terms of risk, but more environmentally friendly, and immune from volatile oil price fluctuations making it a more economic source of energy by comparison.
Comments
TheMadHatter 6 years, 1 month ago
Ready to become a campaign promise in 2022. Amazing how the same stories repeat in just a different disguise.
ohdrap4 6 years, 1 month ago
the energy bill WILL NOT BE LOWER
someone has to pay for the plant-- that means you/
in countries where people have solar generation, the electricity rates are higher .
try getting an lng generator for your home. it is much more expensive to run than a diesel one
JohnBrown1834 6 years, 1 month ago
Why don't we get a 300 MW plant and eliminate all the substations especially Blue Hills?
mario@djgenergy.com 5 years, 11 months ago
If you where to eliminate the substations you would require more energy.
John 6 years, 1 month ago
When Leslie "PotCake" Miller had this proposal more than ten years ago it was shot down like a pigeon Are we there yet?
Well_mudda_take_sic 6 years, 1 month ago
And we all know what could all too easily happen to vast amounts of stored LNG if it does not remain in a very cooled liquid state. BIG TIME KABOOM!!! Lyford Cay residents can't be too happy about having a large scale LNG bunkering and transshipment facility in their back yard. Shell North America is much more interested in the huge profits that facility will bring them and much less interested in our nation's power generation needs, with the latter being a loss leader for the former. LMAO
The_Oracle 6 years, 1 month ago
In liquid form it is very cold and stable, and kept that way very easily. No, LNG will not go kaboom if not cooled, it will re-gasify slowly which is what they control to provide the gaseous form for consumption. Natural gas is lighter than air, therefore any leaking gas will rise, not pool in low areas like gasoline fumes do. Of course Shell is interested in profits, and new markets for their products, who wouldn't be. unless you believe the tripe Government has been selling us for 50 years.
Well_mudda_take_sic 6 years, 1 month ago
Now I'm really LMAO! You obviously must think there is no reason why States all along the U.S. Eastern Seaboard have refused to grant Shell North America and others like them the permits they would need to do what Shell North America is about to do on a very large scale basis on the West-South-West end of New Providence. By the way, I've got some mosquito infested swamp land in the worse part of Andros that you might be interested in buying.
concernedcitizen 6 years, 1 month ago
There are LNG storage /plants in Mass ,Maryland , Louisiana , Texas etc etc
DWW 6 years, 1 month ago
Please do some research before spouting BS
concernedcitizen 6 years, 1 month ago
@DMW if your referring to me ,Concerned citizen , I did the research .If your replying to ,Muddos , I agree one hundred percent .
BahamaPundit 6 years, 1 month ago
I believe they chose LNG to appease the environment conscious Albany and Lyford Cay residents. They call the shots. They didn't want a toxic diesel plant around their residences stinking up the air and polluting the sea.
Well_mudda_take_sic 6 years, 1 month ago
There will be serious environmental and safety consequences because the planned LNG bunkering & transshipment facility will literally be colossal in scale.....think old BORCO size in Grand Bahama. Insiders have all along known Shell North America had absolutely no profit motive to just switch our country's power generation needs from diesel fuel to LNG. The jewel in the crown for them has always been getting the necessary permits (government approvals) to establish the bunkering & transshipment facility. Just sit back now and watch how many Lyford Cay and Albany properties are listed for sale at unusually low prices over the next year or so. LMAO
sheeprunner12 6 years, 1 month ago
Scrap this Shell fossil fuel BS .......... Go solar for The Bahamas 100%
DWW 6 years, 1 month ago
Let's hope the union doesn't blow this one up! :)
The_Oracle 6 years, 1 month ago
While I agree with 100% solar it will take a complete economic shift/Government turn around/ bank attitude change to accomplish even in 30 years. LNG has been proposed for east and west GB, Ocean Cay because of land availability, which is scarce on the eastern seaboard of the U.S. Strategic location. None of those proposals were to supply locally. They were all pipelines to the U.S. demand/market. This one is all about a new market for LNG, the Bahamas. It only makes sense for the Bahamas as we have no other plan. It is a short term solution at best. Whether we bleed foreign reserves for oil or gas makes no difference.
DDK 6 years, 1 month ago
I do believe you may be right!
Well_mudda_take_sic 6 years, 1 month ago
The Bahamas is going to be ground zero in Shell North America's planned profitable supply chain of LNG throughout the Caribbean, Central America, and Northern South America countries. A bunkering & transshipment facility of this colossal size and nature really has no place at all in our country for sound environmental and safety reasons.
mario@djgenergy.com 5 years, 11 months ago
The Bahamas is in dire need of energy. We offered LNG to the Bahamas over 6 years ago via floating power plant and fuel barge. No one could wrap their heads around it then. Now it is the only option, right?
Not so we have a new solar technology with a very small footprint.
100 MW OSEGT TECHNOLOGY PROJECT FOR THE BAHAMAS & FAMILY iSLANDS:
We have a Solar Hybrid Technology that is a stand-alone power plant that does not consume any fuel to run 24 hours a day. This solar technology has a very small footprint. 1mw/ 1000kwh of power in 2 containers/ 500kw per container.
Your standard solar project would require about 5 acres. We would install power plants at all power substations thus reducing significantly transmission costs.
This technology is built in US and has been approved by the United States Go-Solar as " Other Eligible Solar Electric Generating Technologies (OSEGT ) and other countries worldwide. This technology also affords a warranty from Lloyds of London a top insurance carrier.
We are prepared to fund this project with a Power Purchase Agreement from the Government for Nassau, Family Islands, and Grand Bahama.
This would also cover their official obligation of having a certain percentage of renewable energy in their energy portfolio.
More information available!
http://djgenergy.com/24-hour-solar-powe…
Deco Jones Energy Group LLC
Mario
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