FREEPORT, Grand Bahama – The Government of The Bahamas will grant provisional approval for up to two liquefied natural gas pipeline proposals within the next 30 days, according to Trade and Industry Minister Leslie Miller.
This provisional approval will come even though the country does not have the technical infrastructure to conduct its own environmental assessments of these projects.
Minister Miller revealed to the Journal on Tuesday that the AES and El Paso Oil liquefied natural gas plant proposals are both up for approval, with proposals from the Tractebel firm having been submitted to government for its review just last week.
He explained that these approvals would be tentative and based upon results of environmental assessments in the United States. Should these assessments prove negative, the tentative approvals would be dissolved.
El Paso Oil, whose corporate headquarters is based is Houston Texas, proposes to construct a gas pipeline from a re-pressurization facility near South Riding Point, Grand Bahama, to Martin County, South Florida.
The AES firm proposes to construct the same type of structure from Ocean Cay to South Florida, with Belgium-based Tractebel’s proposal also being slated to construct a natural gas line from Grand Bahama to Florida’s southern coast.
All three corporations are major suppliers of energy throughout the world. Two of these firms have also been the subject of major industrial and environmental investigations.
In 2001, El Paso Oil became the subject of the largest civil penalty case launched by the U.S Department of Transportation’s Research and Special Programs Administration, after an explosion at its New Mexico plant which killed 12 workers. According the Department’s report, El Paso was found in violation of five major safety regulations, including the transport of corrosive gas without taking proper protective steps, failure to keep adequate tracking records, which could have prevented the explosion and failure to ensure that qualified personnel perform internal corrosion tests.
In a recent report issued by Greenpeace, AES has also been found in violation of environmental regulations worldwide, including the illegal dumping of caustic waste which resulted in significant contamination to the Thames River in Connecticut, the refusal to alert the state of California to a toxic spill it produced in 1989, and the falsification of water sample reports in Oklahoma, according to the Environmental Protection Agency or EPA.
According to Minister Miller, the Bahamas has enlisted the services of a “major international environmental company” with whom the country became associated during the New Providence Road Improvement Project. He noted that this company assists the government in its assessments, by reporting its project evaluations to the BEST Commission.
Minister Miller said that the BEST Commission is working with the Federal Energy Regulatory Commission (FERC) in this regard.
FERC is an independent agency within the U.S Department of Energy that regulates the transmission of natural gas, oil and electricity throughout the United States.
A company desirous of transmitting electricity and/or its components must prepare an Environmental Impact Statement in collaboration with FERC for final State and/or Federal approval.
In the case of AES, El Paso Oil and Tractebel, these statements must outline construction plans, potential impact to marine and all surrounding vicinities as well as alternate construction plans in order to minimize any stated effects.
U.S. approvals, however, are based in part on the impact these project would have on U.S interests. Bahamian interests would be outside FERC’s jurisdiction.
Minister Miller explained that although the Bahamas does not have the technical capacity to determine on its own what impact these projects could have on the environmental and national safety of the Bahamas, “what is good for Florida is good for the Bahamas,” and he maintained that companies would not doctor their environmental reports so as to appear favourable to government agencies, because they would be compromising their own best interests.
South Florida residents, however, are not as convinced.
Minutes from a March 5 scoping meeting held by FERC in Dania Beach, Florida, revealed that residents are generally opposed to the Tractebel project. South Florida residents also recently rejected El Paso Oil’s project proposal for their area during town meetings.
Tamara Young-Allen, public relations specialist for FERC, told the Journal that the views expressed during scoping meetings, are factored into the agency’s final decision regarding company proposals.
Grand Bahama residents have not been given the same chance at consultation.
Minister Miller told the Journal that town meetings are not necessary at this time.
He said plans are now underway to have FERC officials travel to the Bahamas to conduct town meetings after provisional project approvals have been granted.
Minister Miller maintained that LNG proposals for the Bahamas are not as large a safety concern as they are being made out to be.
There are other officials who share this sentiment.
“We have been advised this can be done without any damage to the environment,” Chairman of the Grand Bahama Port Authority Edward St. George told the Journal.
Referring to the Tractebel project, Mr. St. George noted that the presence of the company’s liquefied natural gas terminal in the middle of Boston Harbor speaks to the safety of its facilities.
“Sometimes I believe environmentalists go a little bit overboard,” he noted, “but the government is here to ensure that the integrity of the environment is protected.”
Mr. St. Gerorge indicated that the Grand Bahama Port Authority has enlisted the assessment services of a Bahamian and an international firm, and that the Port would be providing reports of these assessments to the government and to the BEST Commission.
He also noted that Tractebel’s presence in Freeport would result in numerous spin-off industries for the island.
Minister Miller also pointed to such benefits. He said such projects would be in the best interest of the Bahamian people.
By Sharon Williams, The Bahama Journal
