Liquefied natural gas (LNG) is still being looked at as an alternative form of energy and a way of reduce electricity bills, according to Minister of the Environment Kendred Dorsett.
Mr. Dorsett told The Bahama Journal recently that LNG has not been “thrown out the door.”
“In our Charter for Governance we said that we would be looking at all sources of alternative and renewable forms of energy and looking at it in a responsible way,” he said.
“My ministry has been working together with the Ministry of Works and the Office of the Prime Minister. We have been looking at all technologies available to us and as the prime minister indicated there are certain assessments that are being conducted right now so the government can make a policy decision as to which technology will be relied on to reduce the cost of electricity.”
He also added that research is being done to ensure that all forms of alternative energy are safe for the environment in The Bahamas.
“Will LNG be one of those that we look at? Absolutely, but at the end of the day we will look at what is best for our country as a whole once those assessments are concluded.”
He said at this time, there is no timeline for the introduction or implementation of the use of LNG to The Bahamas.
Mr. Dorsett also explained however, that by January of next year the assessments should be concluded and the government will begin to chart the way forward after that.
Minister Dorsett admitted that the high cost of electricity causes untold hardships and the country to be uncompetitive.
The minister said the government hopes to upgrade existing power generating equipment in hopes of cutting costs.
The aim is to save the Bahamas Electricity Corporation (BEC) about $100 million annually.
Under the previous Christie administration, former Trade and Industries Minister Leslie Miller fought criticisms when he pushed the idea.
At the time, three companies – AES Corporation, Tractebel and El Paso – were looking to establish LNG plants from Florida to Ocean Cay.
AES Corporation came the closest to having its plans finalised with a heads of agreement almost sealed.
If the then government had gone ahead with its LNG plans it would have stood to gain up to $50 million a year in revenue.