It has been seven years since Virginia-based applied energy services (AES) has been seeking approval from the government to construct a liquefied natural gas pipeline at the man-made Ocean Cay in the Bahamas.
And with an additional proposal in place to construct a smaller pipeline that will run to the capital from Ocean Cay to supply Nassau’s energy needs, AES’ Project Director Aaron Samson, believes that the energy giant now has the full attention of the Bahamas government.
He is therefore hopeful that both projects will move forward soon.
"We need to get a decision going and try to get this project built," Samson told the Bahama Journal Tuesday. "I think we have done a good job of gaining support for this proposal too. It’s a big difference in the project as we would serve the Bahamas with the same fuel that we are trying to take to Florida."
"It’s a dramatic change in the LNG project as it’s now going to serve the Bahamas. I’m pretty optimistic that when the analysis is done and the discussions are over, we will get to move forward."
According to Samson, the new and "usual" LNG pipeline proposal for Nassau would not affect or disturb the bottom of the tongue of the Ocean and it all depends on route selecting and ensuring that sensitive areas are not impacted when surveys are conducted. "It’s an unusual pipe in that 80 or 90 miles of it is in the Bahamas Bank between Ocean Cay and Andros, which is extremely shallow water with the pipe just buried in the sand. It then goes straight down the canyon of the Tongue of the Ocean into extremely deep water."
AES has been seeking approval to build an LNG facility in the Bahamas at Ocean Cay since 2001 when the Free National Movement initially held office. The company, however, was only given approval in principle.
AES wants to construct an LNG pipeline from the man-made Ocean Cay in Bimini to 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.
AES has so far met the stringent requirements of the Bahamas Environment, Science and Technology Commission, but it is still waiting on the issuance of regulations that would govern the LNG industry in The Bahamas. The former Progressive Liberal Party administration reviewed draft regulations, but to date, such regulations have not been approved and presented to AES.
However, local environmental activist Sam Duncombe reiterated to the Bahama Journal Tuesday that Samson needs to understand that the proposed AES pipeline project has really outworn its welcome in the Bahamas.
"His project is outdated," Duncombe said. "It does not fit in with the whole movement of where energy needs to go. I think he has muddied the waters in terms of what our benefits will be out of this new project where they will be supplying a pipeline for New Providence. This is kind of ridiculous. We already have issues with one pipeline running across our seabed, now he wants to run another pipeline across our seabed and create more issues as far as the environmental impact goes."
Duncombe also noted that because the Bahamas is one of the richest countries in the Caribbean, it should be at the forefront when it comes to finding alternative sources of energy. "We need to get to the table and rethink this whole model," Duncombe said. "We must learn to plan and develop by doing very little impact to the environment but I know that everything we do will affect the environment. That is expected."
"People look at the environmental movement and say we are against jobs, we are against development. That is ridiculous; we have to live on this plant too. We understand the need [for developments] but we have to protect the resources that sustain us."
Meanwhile, Samson said every country in the world that does not have natural gas really wants it and those that have natural gas wants more. "It’s the cleanest fuel in the world that we use," Samson insisted. "Every major environmental group in the world acknowledges that more natural gas and less coal and oil are part of the solution to global warming. It’s a terrific move and its huge economic benefit for the Bahamas and comes with very significant environmental changes to go to natural gas from diesel fuel."
Samson said after seven years of negotiating with both the Progressive Liberal Party and the Free National Movement governments in the Bahamas, he is still optimistic that AES would receive approval to construct both pipelines.
"I am very optimistic. I think it takes time for people to analyze it and look at the range of potential savings and the environmental benefits, and for BEC to analyze what they think of the conversion of fuel," Samson said.
The AES Project Director said over the past two months, his company engaged a number of businesses where he touted the benefits of an LNG pipeline, and their efforts have been well received.