NASSAU, BAHAMAS — Shell has submitted its application for an Independent Power Provider (IPP) license to Utilities Regulation and Competition Authority (URCA).
The company hailed the move as a significant milestone for its partnership with Bahamas Power and Light (BPL) on the gas-to-power project.
“We’re pleased and excited to reach this milestone, another key step towards solidifying the Shell-BPL partnership as we move forward with our world-class LNG-to-power project,” said Markus Hector, GM Market Development, Shell LNG Marketing and Trading.
“Shell is ready and willing to work with the Bahamas’ Utilities Regulation and Competition Authority (URCA) to advance this application so we can continue to move this project forward as quickly as possible.”
He added: “Now that we have submitted our application, we look forward to working further with the Government on the Heads of Agreement with an eye on finalizing this and other agreements.”
In an update, Shell underscored its application is the first time a company has submitted an application for an IPP license for baseload power generation in the country.
Other permit applications, like the Environmental Impact Assessment, are reportedly still underway.
It was also noted the application follows months of negotiation of definitive agreements, including the structure of the deal, the Power Purchase Agreement, the Asset Purchase Agreement and the Heads of Agreement with 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.
Shell has previously indicated plans to purchase the assets at “fair market value”.
Loading ...
