Arawak Port Joins In BP&L LNG Bid

Tribune 242

February 20, 2018

Arawak Cay’s port operator has joined a bid to supply Bahamas Power & Light (BPL) with liquefied natural gas (LNG), as it seeks to diversify from 100 per cent reliance on cargo shipping.

Mike Maura, Arawak Port Development Company’s (APD) chief executive, confirmed to Tribune Business that it had teamed with New Fortress Energy, the company identified by the former administration as its preferred energy solution, on a “tender” to provide the utility monopoly with a new generation fuel source.

He added that, if successful, the offer would provide the Arawak Cay port with a new revenue stream to reduce its reliance on commercial shipping while also covering “a portion” of the BISX-listed operator’s expenses.

Besides the “national benefit” from reduced energy costs and a more reliable, cleaner fuel supply, Mr Maura said the bid - which also includes Bahamian financial advisory firm, CFAL - could provide “cold storage opportunities” for fisheries and agriculture producers.

“APD has remained focused on the diversification of business,” the APD chief told Tribune Business via e-mail. “In an effort to participate in the Bahamas’ energy reform, APD has partnered with New Fortress Energy and CFAL in a tender to BPL to provide natural gas-fuelled power generation.

“The group believes that the new business opportunity provides a national benefit and shareholder value. The introduction of LNG to the Nassau Container Port provides a new revenue stream for APD, and offers new cold storage opportunities for local seafood and agriculture.

“The new business will add incremental income, which will serve to cover a portion of the port’s operating expenses, while reducing the risk to APD’s 11,000 shareholders stemming from a dependence on traditional cargo throughput, and introduce new investment opportunities for all Bahamians.”

Mr Maura did not provide further details on the APD-New Fortress-CFAL offer, although it will likely involve the development of an LNG storage/regasification terminal at the Arawak Cay port location.

New Fortress, as the fuel supplier, will likely ship the LNG to APD from its facilities in Florida. From there, the gas will likely be transported by pipeline from Arawak Cay to BPL’s Blue Hills power plant, where it will be used to drive the utility’s generation equipment.

New Fortress, the subsidiary of a multi-billion dollar New York asset manager founded by its principal, Wes Edens, appears to be targeting the Bahamas as its next ‘entry point’ into the Caribbean energy market.

It has already inked an LNG supply deal with Jamaica’s electricity supplier, Jamaica Public Service Company (JPS), and in late 2017 announced a $1 billion infrastructure investment in that island that includes the construction of several power plants...

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