They have been looking at facilities owned by AES of the US and Tractebel of Belgium – two of three companies that want to build gas terminals in the Bahamas from which gas will be piped to Florida.
The investments planned by the two companies and by El Paso of the US have a cumulative value of $1.8bn (ﾣ1bn, ﾀ1.5bn) and are meant to meet growing demand in the south-east US for power generation.
But though Bahamian officials savour the value of the investments to the archipelago’s tourism-based economy, they are concerned about the environmental impact. This appears to have led to disagreement over whether to grant permission for the installations.
The three companies propose to take liquefied natural gas by tanker to terminals in the Bahamas, reconvert it to gas and pipe it about 150km to Florida where it will feed power stations.
AES plans to build a gas terminal on the islet of Ocean Cay, close to Bimini Island, with a capacity of between 3m and 4m tonnes a year and a pipeline capable of transporting 800 cubic feet per day.
El Paso’s terminal is proposed for South Riding Point on Grand Bahama Island. The pipeline, now proposed to carry 1bn cubic feet a day instead of the originally planned 800m cubic feet a day, will run to Palm Beach in Florida.
Tractebel Electricity and Gas, a US subsidiary of the Belgian company, says it expects soon to award contracts for its project, and that gas could start arriving in Florida by 2007 through a pipeline with a capacity of 832m cubic feet per day.
The projects depend on permission from environmental regulators in the US and the Bahamas.
Environmental protection advocates say that they are concerned about possible damage to the marine environment, especially the delicate coral reefs.
The US Federal Energy Regulatory Commission has said that the AES and Tractebel projects would be expected to cause minimal damage to the environment. It has not yet given a preliminary assessment of the El Paso plan.
However, the Bahamas Environmental Science and Technology Commission, the country’s environmental protection agency, has not yet publicly ruled on the three applications.
The energy companies have been trying to reassure Bahamians about the safety of their proposals by taking the officials to see their existing operations.
There is, however, division in the Bahamas on the planned investments.
Keod Smith, chairman of the commission, said the government should move “very slowly” before making a decision regarding the projects. The necessary legislation and policy framework were not in place and it would be premature for the government to approve any of the proposals.
“Mr Smith is not the minister responsible here,” retorted Leslie Miller, the industry minister. “He has totally aligned himself with non-government organisations such as environmentalists who have their own interest to protect.”
Mr Miller said that of the three companies seeking the government’s approval, AES appeared best suited to win a permit.
By Canute James in Kingston, The Financial Times
