Headline: URCA approves Shell license — one step closer to purchase agreement

Headline: URCA approves Shell license — one step closer to purchase agreement
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NASSAU, BAHAMAS — The Utilities Regulation and Competition  Authority (URCA) has approved Shell’s  application for an Independent Power Provider (IPP) license.

The license commenced on October 5 2020 and expires on October 5 2035. The company has previously hailed the move as a significant milestone for its partnership with Bahamas Power and Light (BPL) on the gas-to-power project.

The IPPL approval brings Shell one step closer to negotiating a Power Purchase Agreement (PPA) with Bahamas Power and Light (BPL) to establish an LNG to Power complex on New Providence.

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.

Shell has previously indicated plans to purchase the assets at “fair market value”.