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LNG Pipeline Drilling Due To Start This Week

FREEPORT – As Tractebel awaits final government approvals on an environmental impact assessment study at Grand Bahama, preliminary drilling is set to start as early as this week off the Florida coast in anticipation of its proposed $650 million LNG pipeline project.


Jim Ebeling, project manager with Tractebel, revealed that all the necessary permits from the state of Florida have been obtained to start pre-construction drilling activity.

“We will be mobilising a special drill ship and will start drilling next week, weather permitting,” he told executives at the Grand Bahama Port Authority last week during a presentation of its EIAS report.

He said that preliminary drilling is necessary to complete the design activities associated with the pipeline as it comes ashore at the Florida coastline.

Tractebel, an energy giant based in Houston, Texas, is proposing to construct an LNG terminal, and a 96-mile long pipeline from Grand Bahama.to Port Everglades for the transfer of natural gas.

A 200-acre site has been identified in Grand Bahama for the project, which is expected to provide 300 of the 600 construction jobs for Bahamians.

Investing

After almost a year of assessment and investing millions of dollars in the undertaking, Tractebel on Wednesday finally presented its environmental impact assessment study (EIAS) to the Bahamas government and BEST Commission in Nassau.

The same report was officially presented Thursday to Grand Bahama Port Authority chairman Edward St George and president Willie Moss at the Port Authority’s boardroom.

As soon as report is reviewed and approved by the Bahamas government, Tractebel hopes to start construction of the plant in the second quarter of 2004.

Two other LNG projects have also been proposed at Bimini and at East Grand Bahama by AES and EL Paso, respectively.

Project

Mr Ebeling believes that Grand Bahama is ideally suited for Tractebel’s LNG project, which was initially acquired from Enron after it went bankrupt two years ago.

“When we bought this asset out of the bankruptcy process, Enron had already made a submission of an environmental impact statement to the government.

“Tractebel reviewed that when it became our asset and determined that it was not up to Tractebel’s standards. It was nothing that we would ever present, and want to put our name on,” he said.

Commitment

Mr Ebeling said because of Tractebel’s commitment, a determination was made in the company’s and the country’s best interest to revise it.

He said the final product came as a result of input from the Bahamian environment tirm, Environlogic, as well as its own US sub-contractor Ecology and Environment, and the government’s BEST Commission

According to Mr Ebeling the island’s geographic location, its existing industrial infrastructure and the skilled labour force that were a plus for LNG plant “More importantly, when we looked at the site of the old abandoned Bahama Cement plant and Freeport we concluded that this was a location a city that was designed for a proJect like Tractebel’s LNG plant,” he said.

Activities

Mr Ebeling said most of the permitting activities and federal approvals for the project are just about complete in the United States. FERC hesaid. has issued Tractebel its preliminary deteminiation and presidential permit draft environmnet impact statement.

Tractebel has responded to all FERC and other commenting agencies’ questions.

And we’re expected to receive our final EIS and the certificate of public convenience and need in the near future,” he added

Construction

As soon as approval is granted by the Bahamas government he said, Tractebel will be able to begln the employment of Bahamians in the construction process.

He noted that Tractebel’s Gas Engineering out of Europe will be significantly involved in the engineering and design work.

Edward St George said that of the three companies that have put in proposals for an LNG facility, Tractebel has the greatest credibility.

They are fine partners and people to have in the Bahamas he said.

“Like many good ideas that come to the Bahamas, this originated in Freeport. But, this is the one that we do all we can to keep in Freeport because obviously this is the only place to have it in the Bahamas.”

Mr. St George stressed that there will be no compromise on safety factor.

Although he was initially concerned about the safety factor visiting Tractebel’s plant in downtown Boston erased all his doubts.

Safe

I must say when I went to Boston and saw your facility “right in the middle of downtown Boston, I realised that it had to be safe or it wouldn’t be there ” he said.

Mr St George also commended the government for taking so seriously the environmental issues.

“It is important to the Bahamas a wonderful paradise with beautiful seas and sun-shine. It is important that it does not get polluted. And that is why the wisdom of government has shown that they should limit industry to a particular area rather than have if proliferating throughout the Bahamas.

And Freeport has been really set out for manufacturing and industrial purposes.

“We have shown over the years how this has become such as important asset of the Bahamian people.


Tremendous

“That it has managed to make a tremendous impact on the economy of the Bahamas, and instead of the Bahamas being solely dependent on tourism.

“Now, it is largely dependent as well on industry.”

Mr St George said the Port Authority has managed to create an industrial area that does not have any negative impact on the rest of the Bahamas and even on the rest of the Grand Bahama, where there is also a striving tourism industry working side-by-side with the industrial sector

Conclusion

He noted that the PortAuthority will do all in its power to ensure that Tractebel’s project reaches a successful conclusion.

“We are 100 per cent behind you. And I want to thank you for your choosing the Bahamas and particularly Freeport for this venture,” he told Mr Ebeling.

Denise Maycock, The Tribune

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