Monday, October 19, 2020

New Power Plant Deal 'Weeks Out'

BPL's Clifton Pier station

Tribune Business Editor

Shell North America says "a degree of urgency" is required to close the deal for New Providence's new multi-million dollar power plant with an agreement thought to be just "weeks out" from conclusion.

Gerard Van-Ginkel, the multinational energy giant's project director, told Tribune Business that negotiations with Bahamas Power & Light (BPL) and the Government were "at the precipice" of reaching a conclusion following nearly two years of negotiations and the parties now needed to take that final step.

Speaking after Shell became the first Bahamas-based independent power producer (IPP) to be licensed by Bahamian energy regulators, Mr Van-Ginkel said Shell North America aimed to begin construction on the Clifton Pier-based regasification terminal and associated facilities that will supply liquefied natural gas (LNG) to the new power plant early in 2021.

The timeline, though, depends on obtaining swift BPL, government and Shell Board approvals for the agreement to proceed, and with construction likely to take a minimum of two years it is unlikely LNG will now be introduced into New Providence's energy mix until early 2023.  Read more >>