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BPL on Shell NA: PPA and other agreements  still being negotiated

Bahamas Power and Light (BPL) Chairman Dr. Donovan Moxey said yesterday that he still cannot say when Shell North America (Shell NA) will take control of power generation for New Providence, explaining that the power purchase agreement (PPA) is still being negotiated and non-disclosure agreements have been signed.

Moxey, who was speaking during a press conference at BPL’s Clifton Pier power plant yesterday, insisted though that negotiations with Shell North America are moving forward very positively and the relationship between the entity and BPL are good.

Moxey said apart from the PPA, there are other offshoot agreements that have to be negotiated with Shell North America in order for the company to take control of power generation for New Providence.

He added that BPL’s lawyers have informed the board that the processes and timelines are within agreed limits.

“We are pretty happy with the process,” he said. “We are well on our way with Shell to getting that PPA done.”

In the second quarter of last year, BPL announced that Shell NA LNG LLC & Affiliates was awarded the contract to build a new generation and liquefied natural gas (LNG) plant at Clifton Pier, following a bid process that sought proposals to replace temporary power at the corporation’s Blue Hills plant.

In November of 2017, BPL unsealed the proposals of 19 companies for the supply of 80 megawatts of temporary power to replace rental units that are currently producing 80 megawatts of power.

The then BPL board explained that Shell’s use of LNG with BPL’s fuel mix set it above the other bids that came in to the company.

“Shell NA, which is headquartered in the Netherlands and operational in Texas, is among the largest global energy marketers and traders, providing a comprehensive portfolio of energy-related products and services,” BPL’s board said in a release last year.

“Nineteen companies passed the vetting process but in the BPL board’s opinion, Shell NA provided the best solution for the company’s new direction and its commitment to renewable energy. This direction is in full compliance with the government’s mandate to meet the 2030 National Energy Policy.”

Shell North America has proposed a gas-to-power plant which will require the construction of an LNG plant at Clifton Pier. It will produce up to 270 megawatts of power generation, according to BPL.

The first 132 megawatts of those 270 are currently being installed at BPL’s Clifton Pier plant.

Chester Robards

Senior Business Reporter at The Nassau Guardian
Chester Robards rejoined The Nassau Guardian in November 2017 as a senior business reporter. He has covered myriad topics and events for The Nassau Guardian.
Education: Florida International University, BS in Journalism
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