By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A Cabinet minister says plans to transition Bahamas Power & Light’s (BPL) baseload generation to liquefied natural gas (LNG) remains on schedule, asserting that the fuel switch will ultimately lower electricity generation costs by as much as $100m annually.

Speaking at an Office of the Prime Minister briefing following the prior weekend’s New Providence-wide blackout, Jobeth Coleby-Davis, minister of energy, utilities and aviation, said the Government will mark another “major milestone” in its energy reforms today with the groundbreaking for New Providence's LNG terminal.

"On Monday, we will embark on a major milestone in our energy transition: The groundbreaking ceremony for New Providence's liquefied natural gas terminal," she said.

Explaining the rationale behind the fuel switch, Mrs Coleby-Davis said LNG burns cleaner fuel than heavy fuel oil (HFO) and automotive diesel that have powered much of BPL's generation fleet for decades while also reducing operating costs.

"Natural gas burns cleaner than heavy fuel oil and diesel, which have powered much of our system for decades. It produces fewer emissions, requires less maintenance and, perhaps most importantly, for every Bahamian family, it costs less to generate electricity," Mrs Coleby-Davis said.

"As LNG is introduced into our generation fleet, consumers are expected to benefit from up to $100m in annual fuel savings. Those savings are expected to flow directly through the fuel component of your electricity bill."

Mrs Coleby-Davis added that LNG will also reduce BPL's dependence on expensive temporary rental generation, allowing more resources to be directed towards strengthening the electricity system.

She said LNG forms one component of a broader energy strategy that also includes utility-scale solar generation, battery energy storage systems (BESS), upgraded substations and improvements to the transmission network.

"By the end of this transformation, New Providence will be supported by approximately 172 mega watts (MW) of LNG generation, utility-scale solar already under construction, battery energy storage, modern substations, upgraded transmission infrastructure and existing generation working together as one integrated system," sais Mrs Coleby-Davis. "This balanced energy portfolio gives us greater reliability, greater resilience, lower emissions and stronger energy security."

Meanwhile, Christina Alston, BPL’s board chair, confirmed that the pipeline linking the LNG terminal to the Blue Hills power station also remains on schedule.

"That's still on track," Ms Alston said. "The pipeline is part of the dual-fuel project. We have an owner's engineer who oversees all of the projects and reports weekly on the milestones to ensure everything stays aligned.

"You don't want to build a pipeline before the rest of the infrastructure is ready. One of his main responsibilities is making sure all of those milestones line up. The pipeline remains on schedule."

Mrs Coleby-Davis added that the wider electricity transformation remains under way, with transmission upgrades, digital controls and new substations expected to improve reliability while lowering long-term operating costs.