by Larry Smith
There has been another exchange of views in the Nassau press on the AES proposal to build an LNG regasification terminal on uninhabited Ocean Cay near Bimini (see previous post for background).
An American teacher named Alan Jackson wrote an op-ed piece for the Tribune questioning the benefits of the project and citing "dangerous negatives that cannot be ignored."
Jackson's arguments focused on safety and security issues, with particular reference to the 37-year-old Everett facility in Boston harbour. He said the Ocean Cay terminal would be a target for terrorists because of its scale and value to the South Florida economy.
"The target value of Bahamian LNG is a lot more impressive than the insignificant storage at (the Everett terminal in Boston). It would be nice to trivialise terrorism by indicating that no LNG terminal has ever had a catastrophic problem. But in world history no skyscraper had ever been taken down by an aircraft prior to the 21st century."
He argued that although the terminal's proposed location was nine miles from any population centre, the Bahamian tourism industry would suffer a catastrophic decline by association after a terror attack, just as Indonesia's tourism industry had suffered from the Bali bombing.
AES spokesman Aaron Sampson responded by noting that the Ocean Cay terminal would have a storage capacity of 7.5 Billion Cubic Feet and a throughput of .9 BCF per day - making it double the size of the Boston facility, and not 40 times bigger as Jackson had claimed. And as others have pointed out, there would be no symbolic value to be gained by attacking a gas terminal on a remote island in the Bahamas.
The US imports about 15 per cent of the natural gas it uses, but less than 1 per cent of that is LNG. Total US regasification terminal capacity will be 5200 BCF by next year, so Jackson's argument that destroying a future Ocean Cay terminal will have a serious impact on US energy supplies doesn't hold water.
About 40 LNG terminals are planned for North America, but industry analysts say only 12 are likely to be built. The US has Eight terminals already operating on the East Coast, Gulf Coast, Puerto Rico and Alaska (export), with more than 20 new plants already approved by the Federal Energy Regulatory Commission.
Gas demand is expected to increase steadily in coming years because gas-fired power remains the fuel of choice in many regions. And with increasing reliance on imports, the lack of investment in regasification terminals is a serious cause for concern according to the International Energy Agency, an industry watchdog.
According to the FERC, there have been more than 33,000 LNG ship voyages over the past 40 years without a significant accident. And only four accidents have occurred at LNG terminals over a 60-year period.
Sampson said that a competing proposal for an LNG terminal off the Florida coast could soon make AES' Bahamas project untenable. That would mean the Bahamas Electricity Corporation would lose the chance to save hundreds of millions of dollars on its fuel bills over the next several years, he added.
AES had offered to deliver LNG to Nassau's Clifton Pier power station as part of a last-ditch effort to get government approval for the Ocean Cay project.
But local environmental activist Sam Duncombe said the offer was "nothing more than public bribery and deceit...Not only oil, but gas prices too, are on the increase and are expected to do nothing but rise into the future."
She continued: "While promising to reduce our (carbon) emissions at BEC, AES has conveniently forgotten to mention how many hundreds of thousands of tonnes of greenhouse gases will be spewing into the atmosphere from shipping LNG from its source to their proposed facility at Ocean Cay, not to mention the running of the plant itself."
She questioned the "fossilized" thinking that recommended such solutions to the country's energy problems, and called for the government to focus on renewable technologies like solar and wind power.
"Let us work toward a post-carbon era for our country and decouple our nation from this dirty, diminishing and deadly source of energy."
I will be having Aaron Samson as my guest this Sunday from 2 to 4 pm on ISLAND 102.9 or www.islandfmonline.com
We are welcoming callers who have questions for him at 356-4509 or 356-4510.
Posted by: Patty Roker | July 15, 2008 at 08:00 PM
If ever the Bahamas has an opportunity to secure for its citizens an income stream that will be the envy of the region for very little effort this is it.
Why would the Bahamas turn down such a golden opportunity, or put off the proposal at a time like this when the country so badly needs new industries to feed its families?
In the case of Ocean Cay, the existing Island will be more than doubled in size by dredging and enlarging the existing harbor and the entrance channel to permit tankers with 16 meter draft to unload the LNG gas.
The Government has employed ICF Consulting to act as Project Manager. ICF has raised over 200 questions on the proposal and these have all been answered. In some cases recommendations have been made to satisfy certain concerns. These include setting up appropriate control mechanisms to ensure the project is properly monitored at all times.
All of these concerns have been addressed in the 8 volume report submitted to the government. It covers every conceivable aspect of the proposed dredging operation and the building of the LNG conversion plant, the docks, an airstrip, and other buildings, as well as the pipeline that will take the gas to Florida through Bahamian waters.
As to safety, there is a complete misunderstanding by many of the dangers of such a plant. Ask any fireman, and he will tell you that the possibility of fire, and the seriousness of the fire are far less for an LNG plant than an oil or practically any other industrial chemical plant. LNG has a short fire ball, and a low fire rating. It is difficult to ignite unlike petroleum or diesel products. If LNG escapes it evaporates in the air, being lighter than air.
The transport of LNG gas by tankers, and the building of plants, is progressing in the USA, England and Europe in order to meet the demands of the power supply industry. One such plant is planned for the Thames estuary in England.
Our good Caribbean neighbours Trinidad have profited immensely from the oil industry. It is gas from their oil and gas fields that is available to be shipped to the USA via the Bahamas. Both Trinidad and ourselves will profit immensely from this trade.
In addition to throughput fees, there will be work permit fees for the foreign staff and consultants. There will be much new business created for the people of Bimini and Freeport, as these workers will spend money on their days off in recreation and supplying their daily needs. Boatmen and light aircraft pilots and owners will be in constant demand.
Every Financial Officer in Nassau, and in the Government must be rewriting their budgets for the year to cover increases in electricity and transportation costs.
Where is the additional revenue coming from for the Government? What increases in prices will we see in the shops, restaurants, and in services? How many businesses will close?
As far as Ocean Cay is concerned all the reports are in and the US authorities have approved the necessary plants in Florida. So the only hold up is the Bahamas Government’s decision to proceed. If new legislation is required to control industrial plants, this is a matter easily dealt with, as other countries have similar legislation.
As for the environmentalists. They are a very small group trying to ensure the best for the Bahamas. But we could all be swimming in debt if such technolgy does not improve our lives.
One last thought. The LNG project could be so immensly profitable for the Government, that thoughts should be given to a partial public offering at some time in the future. This could be written into the agreement now.
Posted by: anthony howarth | July 15, 2008 at 08:12 PM
The natural resource of any nation belons to the natural and recognized inhabitors of the land - that being the ownership of LNG found within the confines/borders of the nation is that of the bahamian people. The leadership of the people must be wise and stratiegic in their dealings with those whose number one objective is profit absent the consequence of long term negative affects of its venture on the local environment and peoples.
The resouces of that we speak of , should be used wisely for the overall maxamized benifit of the people today and generations to come - keepig in mind the pit falls that remain to occur in the fuuture as we are experiencing the current economic struggle.
I call upon the political leadership to reamin steadfast on the wings of the advancement of its people - through the evermore efforts of attaining the most heightened level of sufficiency a nation as the Bahamas can endure.
Posted by: baystreetimports@yahoo.com | September 10, 2009 at 07:08 PM