NASSAU, BAHAMAS — Bahamas Power and Light (BPL) and Shell are now just “weeks” away from concluding negotiations, a top executive has stated.
Markus Hector, General Manager of Market Development Shell LNG Marketing and Trading said the energy giant intends to make investment opportunities available to Bahamians in the generation assets as well as the LNG terminal.
Hector spoke with members of the media during a video conference today.
“We are making very good progress in order to conclude the commercial agreement. We aren’t quite done yet but we are closing in and making good progress in partnership together.”
Hector said: “We are really in the final touches and we are talking weeks and not months in order to get to closure on these agreements. Then it will basically be pens down on the agreements. Then they will go into the approval process by the government.”
In November 2018, the government signed a memorandum of understanding (MOU) with Shell NA for the development of a gas-to-power project.
The project would include the development of a gas-fire 220-plus megawatt power plant, marine infrastructure to receive liquefied natural gas; a gas pipeline to bring gas to shore; and an onshore LNG re-gasification terminal.
BPL has undertaken to to cover the costs to construct the entire 220-plus megawatt power plant at the Clifton Pier site and transfer the assets to Shell North America for its gas-to-power facility.
Hector stressed yesterday that Shell would purchase the assets at “fair market value”.
“We are very aware of importance of the project to The Bahamas,” said Hector.
“We are very much aware of the need for reliable power generation for low cost power generation. Shell is very much committed to building this infrastructure and the new business of LNG power generation in The Bahamas.
“We are looking forward to building a business based on Bahamian talent and workforce and investing jointly with people in The Bahamas.”
He noted that while the COVID-19 pandemic has impacted Shell as a company overall, the company is adapting and remains particularly committed to The Bahamas.
Hector said the timeline for completion of the plant by 2021 remains unchanged with the LNG terminal to be completed the following year.