AES Corp is spending more than a $100,000 a month to retain the services of various LNG experts, while the government continues to ponder whether or not to grant permission to the Virginia-based energy giant.
AES Project Director Aaron Samson told The Guardian Tuesday, that with AES completing a positive Environmental Impact Assessment (EIA) with the BEST Commission, in addition to meeting international approvals, the Company is being forced to spend a lot of money while remaining in a state of “limbo”.
“Everything is done, but it’s an expensive waiting period at this point, which is contributing to the frustration that we have.
“We have completed so many of the permitting and real estate activities, but it is a very expensive period, as it is very difficult to keep contractors, engineers and the management folks, as we have them sitting in limbo,” Mr Samson admitted to The Guardian in an exclusive interview from Virginia.
And in addition to paying thousands monthly to retain LNG expertise, Mr Samson also revealed that AES has also spent some $2.5 million over the past year and half to “clean up” Ocean Cay, in order to prepare it for an LNG re-gasification facility. He explained that AES had to remove oil tanks, power structures and sand from the man-made cay, which formerly housed an aragonite mining plant.
“It has been a lot of activity there [at Ocean Cay], but this is also another painful part of the delay, and because we have certain expectations for Ocean Cay, we also went ahead and did a normal reduction in the mining operation by eliminating and not renewing contracts in order to make the transition,” Mr Samson said.
Presently, Virginia-based AES Corp has plans to build a pipeline between Ocean Cay, Bimini, and Dania Beach, Florida. It also proposes to construct a terminal to receive liquefied natural gas via ocean tankers, store the liquid gas, re-convert it to natural gas through warming and send it to the United States via a 94-mile pipeline.
Houston-based Tractebel is also bidding to construct an LNG pipeline through The Bahamas. However, AES has far surpassed this company in meeting the various requirements of the Federal Energy Regulatory Commission (FERC) and the Bahamas Environmental, Scientific and Technology (BEST) Commission.
Mr Samson also indicated that AES was issued the safety “go ahead” by the BEST Commission to construct an LNG facility at Ocean Cay, but the Company has been waiting for almost two years for a response from the Progressive Liberal Party government. And although he referred to the wait as a “long time,” Mr Samson claimed that AES constantly communicates with various government officials in an effort to map out some sort of schedule to “move things forward.” He claimed that he visited the capital last week, but opted not to state if he met with any government official about AES’ pipeline project.
While the government has not made a decision on LNG as yet, varying views have been expressed by those who support and reject the idea.
Most recently, Minister of Health and the Environment Dr Marcus Bethel supported the construction of an LNG re-gasification facility at Ocean Cay and noted that all potential risks have been proven to be acceptable. The financial benefits of the project have also been heavily touted by Trade and Industry Minister Leslie Miller.
On the other hand, Chairman of the BEST Commission and Ambassador for the Environment, Keod Smith, publicly announced his personal opposition to any proposed LNG re-gasification facility in The Bahamas. He is of the opinion that the concerns of the Bahamian people have not been addressed, and the tourism industry would be impacted.
He also outlined the exposure of the national security of The Bahamas by its umbilical connection to Florida, and the perception of The Bahamas being used as a wasteland and dumping ground for the U.S.A.
But responding to those who reject the construction of LNG facilities in The Bahamas, Mr Samson said there is no “factual basis” behind the concerns expressed by these individuals, including local environmentalists.
” I think the government has hired international experts and people that have gone through the documents in excruciating detail, and they made their decisions based on the facts,” the AES Project Director stated.
By: TAMARA McKENZIE, The Nassau Guardian
