The Houston-based company’s Seafarer pipeline was to stretch to Palm Beach County from the eastern end of Grand Bahama.
A second company, AES, proposes to construct a pipeline from Ocean Cay, a man-made island off Bimini to Dania Beach, Florida, while Tractebel Calypso’s project was designed to build a pipeline from the Freeport Harbour to Florida.
Government has been deciding for more than two years on whether or not to grant permission for the construction of the LNG pipeline.
El Paso Corporation owns North America’s largest natural gas pipeline system and is one of North America’s largest independent natural gas producers.
The company withdrew its application with the Federal Energy Regulatory Com-mission last week, an El Paso spokesperson revealed, citing three factors.
One, according to Reuters, is that there are no shippers; the other has to do with questions surrounding the infrastructure for LNG facility development within The Bahamas and the other reportedly was the environmental constraints and requirements dependent for the project offshore Florida.
AES, a Virginia-based company, plans to construct a $650 million LNG re-gasification terminal at Ocean Cay.
In 2001, the Free National Movement (FNM administration approved, in principle, the construction and operation of the LNG re-gasification facilities being proposed in The Bahamas.
The natural gas is intended to be pumped via a pipeline to Florida for the primary benefit of the United States which is reportedly facing an energy crisis.
The Bahamas Environment and Scientific Technology (BEST) Commission cautioned the now Progressive Liberal Party (PLP) government not to proceed with any final approval of such facilities until national security and safety were properly addressed.
In 2004, Tractebel North America and El Paso joined forces to construct a single pipeline connecting LNG terminals in Grand Bahama to South Florida.
In fact, the two linked with Florida Power and Light (FPL), ending the fight to secure government’s approval to build an LNG pipeline from two different locations on the island.
Tractebel’s proposal called for the pipeline to be constructed at the property where the Bahama Cement Factory is located. El Paso was endeavouring to have it constructed from South Riding Point, East Grand Bahama.
Florida Power and Light uses 54 percent of the natural gas consumed in Florida, and according to Prime Minister Perry Christie, if The Bahamas is to be a supplier, it is guaranteed to benefit from the LNG project.
Reports say, El Paso was focused exclusively on the pipeline aspect of the project and would have no involvement in the development of the re-gasification facility.
FPL Group Resources and Tractebel North America were to be equal owners of a proposed receiving terminal in Grand Bahama and a Florida marketing company called Sailfish Natural Gas Company.
And, the decision on which site to use was left up to the government.
The BEST Commission had reportedly advised government not to approve Tractebel’s Calypso project proposal because the site at Freeport was deemed inappropriate and the El Paso site at High Rock was rejected because it is too close to a densely populated area.
The agreement ultimately is to construct one of the pipelines from Grand Bahama to Florida: the proposed Seafarer pipeline would stretch to Palm Beach County while the Tractebel Pipeline project would extend to Broward County.
Meanwhile, government has revealed its intent to grant AES approval to construct its multi-million dollar LNG re-gasification terminal at Ocean Cay.
The project reportedly entails sending 842 million cubic feet of gas a day to Florida.
Several weeks ago, the Opposition FNM Party called on the government to “come clean” and advise the Bahamian people of the exact terms and conditions of any approvals granted or anticipated for the AES project.
The party is opposed to supporting the introduction of a dangerous industry to The Bahamas without all proper precautions and safeguards in place.
By LEDEDRA MARCHE, Senior Freeport News Reporter
