Page 4 - LatAmOil Week 43 2020

LatAmOil COMMENTARY LatAmOil

The Jacksonville gas liquefaction plant will have a production capacity of 1 tpy (Image: Eagle LNG)

Eagle LNG’s Barbuda deal

fuels Caribbean ambitions

The company will supply a new resort on the island with LNG from its liquefaction plant in Jacksonville

US-BASED Eagle LNG Partners has taken a step duration of the deal. It did not say exactly how
towards realising its goal of becoming a key sup- much LNG it would be sending to the resort or
WHAT: plier of LNG to buyers in the Caribbean region. mention the capacity of the planned regasifica-
Eagle LNG and Barbuda On October 26, the company announced tion facilities. Nor did it divulge the generating
Ocean Club have signed a that it had signed a long-term agreement with capacity of the power station on Barbuda that
long-term agreement on Barbuda Ocean Club, the operator of a new will utilise the regasified LNG.
LNG supplies. resort community operated by Scottsdale, Ari- Presumably, the amounts of gas and money
zona-based Discovery Land Partners on the involved are relatively small. According to pre-
WHY: island of Barbuda. In a statement, Eagle LNG vious reports, Eagle LNG’s Jacksonville facility
The resort sees LNG as a said it had agreed to supply the resort with LNG will be able to turn out around 1mn tonnes per
low-cost, low-impact fuel from the gas liquefaction plant and export facil- year (tpy) of LNG. It is also slated to sell its out-
for electricity generation. ity that it hopes to build in Jacksonville, Florida. put in relatively small batches, loading fuel in
It also explained that it had agreed to provide standard-sized shipping containers or trailers
WHAT NEXT: an integrated turn-key solution for delivery that can be moved from one port to another and
The deal could help Eagle and regasification of the LNG, which Barbuda delivered by truck to end-users – unlike most
LNG expand its business Ocean Club intends to use as a fuel for power large-scale LNG producers, which rely on some
in the Caribbean, while generation. combination of tankers and pipelines.
reducing the cost of
efforts to revive the
tourism sector. Small in scale Cost advantage
The statement did not reveal many details of the In other words, the agreement with Barbuda
long-term agreement. Ocean Club is not going to be setting any world
It did not, for example, reveal the value or the records.

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