AES Defends "Safe" LNG Project

By Candia Dames

candiadames@hotmail.com

Nassau, Bahamas

25th April 2005

 

 

 

The local environmental group reEarth has launched a national campaign against liquefied natural gas projects in The Bahamas, but an official from the company has insisted that the plant and pipeline would be safe.

 

"AES from the very beginning has been fully committed to making sure that the facility is going to both meet all environmental [requirements] as well as being a very safe operation," said Robin Pence, vice president of communications for AES.

 

"We feel that we have met all conditions for both of those qualifications."

 

But reEarth officials continue to insist that LNG is dangerous.

 

"Liquefied natural gas is not flammable as long as it is contained," the group notes on its website. "If the containment facility is breached LNG reverts to natural gas and becomes a flammable vapour cloud when mixed with air. This cloud of plume can drift for miles until it reaches an ignition source; a cigarette could ignite it."

 

While Mrs. Pence did not speak specifically to this claim that LNG could be explosive, she reiterated that regulators both in the United States and The Bahamas have already approved the project.

 

"The [Bahamas Environment Science and Technology Commission] have reviewed the proposal from both an environmental and safety perspective and has approved it," she pointed out. "We believe that it's going to provide a very good source of fuel for people in Florida by making sure that we are respectful, safe and environmentally-friendly for the people of The Bahamas."

 

But the local environmental group has urged Bahamians to ask themselves why AES is seeking to bring the project to The Bahamas and not the United States if it is so safe.

 

"Why should The Bahamas bear the brunt of the Untied States' energy needs?" - the group has questioned. "Across America from Florida to California and Canada to Mexico, LNG plants are coming under fire from communities that don't want these plants near their communities. The United States should seriously be looking at alternative energies to support their burgeoning demands on the world's energy resources."

 

The question of why AES chose The Bahamas was one Mrs. Pence quickly responded to.

"I think what has made this a good location is that it is an uninhabited island," she said. "It's far from any tourist or population centre as opposed to being on the mainland and next to any population centre. So this is a remote island far from anything and from that perspective it has been deemed the best site and it is also the safest and most environmentally-friendly."

 

The company wants to build a regasification plant on Ocean Cay, near Bimini and transport LNG to South Florida via an undersea pipeline.

 

Wealthy residents of Cat Cay, located 7.8 miles away from Ocean Cay, have fiercely opposed the company's proposal.

 

The Cat Cay residents say the facility would be too close to their backyards and could become a terrorist target.

 

At a town meeting on Cat Cay three weeks ago, Cat Cay Club President Manuel Diaz said residents would never support the project.

 

"The Bahamian flag represents bright sunshine, crystal clear blue waters and a black nation," Mr. Diaz said. "There are no LNG symbols on it and you can rest assured that it will be a very cold day in hell before that ever happens."

 

Mr. Diaz has also said that, "Supposedly, the government will collect $1 million in revenues and permanently create 35 jobs at the Ocean Cay industrial complex. Well, Cat Cay Yacht Club already contributes around $10 million annually to the overall Bahamian economy."

 

But Mrs. Pence also pointed to the economic benefits of the AES project.

 

"For The Bahamas it provides a source of revenue," she told The Bahama Journal.

"The project is estimated to make direct payments to the Government of The Bahamas of approximately $700 million over the first 25 years of operation. It would also create jobs over the two years in the construction phase and then permanent jobs for people who would maintain the facility."

 

Asked whether AES has been frustrated in the delays in getting the project approved, she said, "We certainly understand the need for the government to go through all the appropriate reviews to make sure that it has passed all the appropriate tests and that the community is supportive."

 

In early January, Prime Minister Perry Christie had said on a local talk show that the AES project would have been approved by the end of that month.

 

But he later indicated that the vehement objection from Cat Cay residents resulted in the government delaying approval.

 

It is now unclear when "and if " the controversial AES project will get the governmental green light, although company officials remain hopeful that it will.

LNG Project Approved

By Candia Dames

candiadames@hotmail.com

Nassau, Bahamas

16th December

 

 

 

 

Minister of Trade and Industry Leslie Miller told the Bahama Journal yesterday that the government has approved in principle the proposal submitted by the AES Corporation to build a liquefied natural gas pipeline in The Bahamas.

 

The minister was asked to respond to reports in the Trinidadian press yesterday, which quoted him announcing the approval at the IBC/Energy Caribbean conference.

"We intend to diversify and expand the economic mix which will enable us to move ahead", he said. "The environment and tourism impacts can and will be addressed and the government intends to provide the clarity and stability necessary to attract these investments."

Minister Miller's announcement came on the same day that the Tractebel and El Paso energy companies and FPL Group Resources were announcing an alliance geared at sealing the government's approval to carry out a similar project in the northern Bahamas.

Some Bahamians, particularly those who are a part of environmental groups, are worried about a possible adverse environmental impact any LNG project could have.

AES officials have tried to placate those anxieties, assuring communities in The Bahamas and South Florida that any negative impact would be negligible.

Company officials continue to point to the significant benefits that such a project would bring to The Bahamas.

According to Project Director Aaron Samson, the AES project for The Bahamas would pay $7 million a year in business license fees.

The project is also expected to create about 450 jobs during the construction phase and 25 to 35 permanent employment opportunities.

"We're convinced that this is a very finance-able project and we won't have difficulties bringing it to fruition", Mr. Samson told the Bahama Journal in an earlier interview.

Company information says AES owns or has an interest in 160 plants in 23 countries.

Local environmentalists like those belonging to the group ReEarth continue to raise concerns regarding such projects.

ReEarth spokesperson Sam Duncombe has questioned whether companies like AES choose The Bahamas for their projects because of "our country's very loose environmental laws."

"I think a lot of it is that if they choose The Bahamas they would avoid the environmental laws that they would have to adhere to in the United States", she has told the Bahama Journal.

But it is a criticism Mr. Samson has repeatedly dismissed as he pointed to the unwavering commitment that AES has to the strictest international environmental standards.

The entire project would include a liquefied natural gas import terminal; a liquefied petroleum gas removal plant; a seawater desalination plant; an undersea pipeline to supply potable water from Ocean Cay to North Bimini; as well as Ocean Cay employee housing and associated facilities on South Bimini, and an undersea natural gas supply pipeline.

Customs Officer Accused Of Terrorizing Investors

By Candia Dames

candiadames@hotmail.com

Nassau, Bahamas

09/02/2004

Customs officials have reassigned a senior officer who had been stationed at Ocean Cay, near Bimini after he clashed with an executive of the AES Corporation, which operates an aragonite mining operation there.

 

In a report to Customs Comptroller John Rolle, Sandy Stubbs, the officer involved in the recent incident, said he feared for his life due to the "aggressive attitude and action" of AES Project Director Aaron Samson.

 

But Mr. Samson, whose company is also seeking the government's permission to build a liquefied natural gas plant on the cay, has denied that he was out of order in dealing with the customs officer, who he claimed was "terrorizing" AES workers.

 

The Customs Comptroller said that his officers are investigating the incident to determine exactly what happened and who may have acted improperly.

 

The whole matter stemmed from another incident that happened weeks earlier.

 

AES officials reportedly believe that Mr. Stubbs, who was stationed on the cay on a rotational one-month basis, was a good friend of a Bahamian AES worker who had been suspended by his supervisor. It is believed that Mr. Stubbs held a grudge against company officials.

 

Following the suspension, Mr. Stubbs allegedly ordered that AES Operations Manager Bruce Fitzgerald and diesel mechanic, Johnny Stott, be deported even after Immigration authorities on Bimini assured him that the expatriates had the necessary documents for their employment in The Bahamas.

 

But Mr. Stubbs insists that he was following proper procedures.  He reportedly confined the men to their quarters for hours then redirected an AES charter plane back to the United States with the workers on board.

 

Mr. Samson flew to Ocean Cay the following day to deal with the matter, which was reported to Trade and Industry Minister Leslie Miller and made an informal complaint to the Customs Department.

 

In his report, Mr. Stubbs said that Mr. Samson asked him to meet him at the AES office so that he could call the Minister, who had reportedly asked Mr. Samson to get the customs officer on the phone.

 

But Mr. Stubbs said he wanted to first call Customs headquarters in Nassau to inform authorities about the situation.

 

"I spoke to Mr. Miller and relayed the incident to him," he wrote. "Mr. Miller agreed with me for following instructions and procedures. However, he did ask if I could be more lenient with them (AES). He then went on to tell me about the LNG project in details and the benefits of such a project."

 

Minister Miller recently told the Bahama Journal that AES is "very close" to getting approval for the LNG project and the government expects to bring in millions of dollars annually as a result of the investment.

 

Mr. Stubbs said Minister Miller also asked him to come and see him when he came to Nassau.

 

Minister Miller confirmed to the Journal that he did speak with Mr. Stubbs regarding the incident, but he suggested that Mr. Stubbs may have exaggerated it.

 

The Minister also said he asked the customs officer to treat the foreign investors "in a delicate manner and with respect".

 

"I stated to him that I was concerned that you are ill treating foreigners," Minister Miller said. "I spoke with him for less than a minute. I asked him to be careful how he deals with foreign investors."

 

He also confirmed that Mr. Stubbs had locked away the foreign workers.

But Mr. Stubbs, in his report, claimed to be the victim.

 

Mr. Stubbs said after being approached by Mr. Samson, "I asked him if he was threatening a government official. He then asked me what kind of official do I think I am? He told me again that I was on his Cay. His and Leslie Miller."

 

He continued, "As I walked to the Customs office, he continued to follow me shouting at me and using degrading remarks to refer to me."

 

Mr. Stubbs also said in his report that, "After the phone conversation [with Minister Miller] Mr. Samson in an angry and loud voice, asked me who do I think I am and how dare I embarrass his people! I told him I was only doing my job and following procedures. He then said he don't quite care about procedures.

 

"He told me that he was having a meeting with his staff at the cafeteria and that I dare not come around there if I know what's good for me. I continued to walk to my office in silence and then proceeded to write this report."

 

But Mr. Samson said, "I categorically deny that I threatened him. It was an unfortunate incident. I got involved so that an unruly official would stop terrorizing and threatening my employees."

AES Corp. Clears Hurdle For LNG Pipeline

By Candia Dames

Nassau, Bahamas

candiadames@hotmail.com

23/01/2004

The AES Corporation has cleared another important hurdle in its bid to lay a liquefied natural gas pipeline between The Bahamas and southeastern Florida.

 

The U.S. Federal Regulatory Commission on Thursday gave the company final approval for its Ocean Express pipeline project, Reuters News Service reported.

 

Now AES has to secure the go-ahead from the Bahamas Government before it could begin the project.

 

But that could take some time.

 

Two months ago, Keod Smith, Ambassador to the Environment and Chairman of the Bahamas Environment Science and Technology Commission (BEST), urged the government to move "very slowly" before making a decision regarding the three proposals for LNG projects before it.

 

Mr. Smith said that the necessary legislation is not in place to guard against possible environmental impacts.

 

His comments came after the BEST Commission viewed the environmental impact assessment for the proposed AES project.

 

That assessment said that laying a liquefied natural gas pipeline from Ocean Cay, near Bimini, to Florida presents the greatest potential for impact to marine resources, as it will cause temporary disturbance to the ocean floor.

 

But the EIA also said that the $550 million project is not expected to impact critical habitats of any endangered or at risk species.

 

The report said the development of a LNG gas terminal and desalination plant on Ocean Cay would provide economic and social benefits to Bimini and the Bahamian government as well as providing a much needed additional supply of natural gas to South Florida and potable water and natural gas to Bimini.

 

The 54-mile pipeline would transport up to 842 million cubic feet of natural gas a day. The pipeline would connect with the Florida Gas Transmission Co. pipeline system in Broward County, Florida.

 

The Ocean Express pipeline would connect with, and receive natural gas transported by a 40-mile Bahamian-jurisdiction pipeline, which is owned by another AES affiliate, that extends to Ocean Cay.

 

Ocean Cay, a 90-acre man-made industrial island, would be the site of a liquefied natural gas storage and re-gasification facility that would receive LNG from foreign suppliers.

 

The AES pipeline would deliver natural gas to markets in Florida and over the interstate pipeline grid to other parts of the country. AES has said it plans to have the pipeline start delivering gas to customers by November 2005.

 

AES Project Director Aaron Samson has said that The Bahamas is the single best place in the world to bring LNG into southeast Florida and has continuously promised that his company is adhering to the strictest environmental standards.

 

Two other companies, El Paso and Tractebel North America Inc. also propose to establish liquefied natural gas pipelines between The Bahamas and Florida.

 

But Trade and Industry Minister Leslie Miller has said that it appears that El Paso is out of the race given that it has been reporting financial troubles.