by Carlena Knight
An additional 40 megawatts of electricity could soon become available for Antigua and Barbuda with the new LNG (liquefied natural gas) power plant on track to be in operation by the summer.
With the majority of the equipment and supplies already on island, it is anticipated that the engines could come on stream as early as May.
LNG is a cleaner fuel alternative to heavy fuel with 40 percent lower carbon emissions.
The multi-million dollar plant is being constructed at APUA’s Crabbs Peninsula in partnership with Antigua Power Company (APC), Texas-based firm Eagle LNG and Finnish technology group Wartsila, and will be the first of its kind within the OECS.
This was welcomed news for the new Utilities Minister Melford Nicholas who was present along with media yesterday for a walk-through of the facility.
“It’s encouraging to see that this project is coming to fruition. It marks a step change in the government’s approach towards its energy needs. This is a timely implementation of this project and I am indeed as new minister happy that our partners are bringing this project together,” Nicholas said.
Along with the positive environmental impact, the plant is expected to boost the economy significantly.
This is according to Chairman of the Hadeed Group of Companies and APC Francis Hadeed.
“Antigua is going to be the only island in the Caribbean that can supply LNG and distribute LNG. This plant, there is none like it in the region. It’s duel fuel, meaning it can use both LNG and low sulphur diesel. Antigua stands to benefit a lot by having LNG.
“Look forward to seeing more cruise ships coming to Antigua,” Hadeed continued. “Cruise ships run on LNG and are going to need LNG.
“They are not going to get LNG from St Maarten or St Kitts, St Lucia, Grenada, none of them. Where are they going to have to get LNG? Right here. And the beauty about the joint venture is that it’s a collaboration with a US-based firm which is producing it, so the manufacturer is also the supplier and our joint partner here in Antigua.
“This project came with a high endorsement from the US Embassy. So, we are very proud of what we have done,” Hadeed added.
And while many will welcome the boost in revenue, the question lingers over what sort of impact the facility might have on consumers’ pockets.
APUA Electricity Business Unit Manager Andre Matthias sought to shed some light on that matter.
“I believe ultimately when we look at everything the price will be adjusted, but the structure of APUA with water, electricity, telecommunications, electricity subsidises water, so you cannot just look at electricity on its own, you have to look at the entire thing. It is not a simple formula to say that the rates will go down immediately.
“Ultimately, I think it will go in that direction because the whole purpose of going LNG is two things, one, is to reduce the carbon emissions and, secondly, because LNG is a much stabler fuel and cheaper at the time for sure, we expect the rates to go down. I am not saying that the rate will go down next month but ultimately it will,” Matthias explained.
It is expected that once the plant is operational it will work alongside the APC and Blackpine power plant.
It is however the intent of APUA to operate solely through the LNG plant sometime in the future as APUA will have sole control of the terminal after 12 years.
In the early stages, low sulphur diesel will be used for its operations until the LNG fuel from Eagle LNG arrives in Antigua.
The terminal which has a life-span of over 25 years will feature an operations and administrative building alongside the engine room.