The Christie-led government has remained noncommittal concerning oil drilling in The Bahamas

PM still committed to referendum on oil drilling

By Candia Dames
Guardian News Editor
candia@nasguard.com

While a referendum on oil drilling is not currently the priority of The Bahamas government, Prime Minister Perry Christie told The Nassau Guardian he remains committed to such a referendum.

But he said “there would have to be serious indications that there is oil and natural gas in commercial quantities”.

“I committed my party to if we are going to have oil drilling in The Bahamas while we are in power, we will do so by seeking the support of the people of The Bahamas, so the answer is yes,” said the prime minister when asked recently by The Nassau Guardian whether the referendum was still planned.

He said,  “One of the dangers for The Bahamas is that concessions are being given to explore in the same area by the Cuban government and it would be a very interesting development as they are in a position to start exploring and digging a well before us.

“If they were to find a well then it makes it almost a compelling case for The Bahamas having to do the same thing.   And so, we’re not going to look a gift horse in the mouth and play crazy with it.

“But at this particular time we have to continue to assess where we are on that subject matter to see whether in fact the company (Bahamas Petroleum Company) is in a position to finance drilling because it’s a huge sum of money involved in that.

“This is not a $50 million or $60 million kind of enterprise.  This is a hugely expensive enterprise, particularly with the environmental safeguards that should be in place.

“And so, at some stage or the other the company will come forth to us to say,  ‘listen, we are ready to do the following things and this is the evidence we have that you have fossil fuels there’ and we’ll see.”

Bahamas Petroleum Company (BPC) has committed to spudding its exploratory well in Bahamian waters by April 2013, although recent reports from the company indicate this drill date could be pushed back later in the year.

BPC is looking to bring on an operational and equity partner for the drill, The Nassau Guardian previously reported.

The Christie-led government has remained noncommittal concerning oil drilling in The Bahamas.

“We do believe that the Bahamian people ought to be consulted,” said Kenred Dorsett, the minister of the environment, previously.  “Whether it goes the extent of a referendum, that will have to be determined based on the costs.  That is a matter for the Cabinet to decide.”

Prior to the election in April, the previous government suspended BPC’s oil drilling licenses. There has been no formal announcement from the new government as to whether these licenses have been renewed.

The Christie administration has also committed to a referendum on gambling, which the prime minister has said will be called by the end of this year; and a constitutional referendum on citizenship matters, which the government intends to call before the end of the term.

Aug 13, 2012

thenassauguardian

Caribbean Blog International

Florida Power & Light Company (FPL) puts On Hold a Plan to Seal a Deal for Long-term Supplies of Liquefied Natural Gas (LNG)

Florida Power & Light Company (FPL) announced that it was now focusing on other potentially more viable options to meet FPL’s increasing requirements because there appears to be limited opportunity in accessing LNG at this time

Utility Co. Pulls Out Of LNG Plan

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

6th June 2005

Florida Power & Light Company (FPL), which was involved in a partnership with two energy firms to construct a liquefied natural gas terminal in The Bahamas, has announced that it has temporarily put on hold a plan to seal a deal for long-term supplies of LNG.

The announcement has placed the fate of one of the LNG proposals for The Bahamas on an even more uncertain path.

FPL had hoped to carry out an arrangement with El Paso Corp. and Tractebel Electricity & Gas whereby through their partnership, natural gas would have been liquefied, shipped from the source and then re-gasified for delivery to Florida.

Last December, the utility company announced that it had agreed to combine development efforts and resources with the two energy companies "in order to bring a new supply of natural gas to South Florida."

Under that plan, the three companies had planned to carryout one project.  Prior to that, Tractebel and El Paso had been pushing separate LNG proposals before The Bahamas government.

But in a recent release, FPL announced that it was now focusing on other potentially more viable options to meet FPL’s increasing requirements because there appears to be limited opportunity in accessing LNG at this time.

The Tractebel proposal had called for the construction of an LNG terminal in the Freeport Harbour while El Paso planned to build a terminal in East Grand Bahama.  But The Bahamas Environment Science and Technology Commission rejected both sites as being viable locations for the construction of LNG plants.

Government officials later indicated that the consortium was eyeing another site in Grand Bahama for the construction of the terminal.  The plan also entails laying an LNG pipeline from the northern Bahamas to Florida.

In December, El Paso spokesman, Aaron Woods, said that both El Paso and Tractebel will continue their individual efforts on the development side of each pipeline.

But he said, "Ultimately, one pipeline and one LNG facility will be built.  The companies will be participants in the ultimate project that is selected."

Although it had indicated last year that it had formed an arrangement with El Paso and Tractebel, FPL said in its recent release that none of the proposals received as a result of a request for proposals for the long-term supplies of LNG presented "sufficiently compelling reasons for FLP to proceed with its [request for proposals] at this time."

The utility company said in a release, "The lack of benefit to FPL customers and no bidders meeting all the specifications of the [request for proposals] contributed to the decision."

Terry Morrison, vice president of FPL’s energy marketing and trading organization, said in a statement, "We remain interested in LNG, but we have to know our customers will benefit before we will enter into any long-term transaction."

The announcement by FPL appeared to have left some confusion.

Mr. Woods, in an interview with The Bahama Journal from Houston, Texas last Thursday, said as far as El Paso is concerned, its agreement with FPL Group Resources, a subsidiary of FPL Group, Inc., still stands.

"FPL Group Resources, SUEZ (Tractebel) and El Paso Corporation continue to believe that having LNG and re-gasifying it there in The Bahamas providing South Florida with an alternative source of natural gas would be in the best interest of consumers in South Florida," he said.

"Based on the announcement by FPL utility, we are assessing our options and at this time, that’s all the information I have."