Page 5 - LatAmOil Week 43 2020

LatAmOil COMMENTARY LatAmOil

Even so, it does represent significant potential well as Barbuda as a whole,” he said. “We have
savings for the resort. made a major commitment to help the people
Like most Caribbean islands, Barbuda has of Barbuda preserve the health and integrity of
traditionally relied largely on petroleum prod- the island’s natural environment. It’s a huge part
ucts, especially residual fuel oil, for power gen- of who we are and what Barbuda Ocean Club
eration. And like its neighbours, it has had to represents. Eagle LNG will allow us to provide
import these products, since it does not have any dependable, sustainable electricity throughout
commercial crude oil reserves or refining capac- our community while minimising the impact
ity of its own. As a result, it has had to pay dearly upon the native environment. It’s a safe, clean
for fuel in order to produce electricity. source of power that will serve our community
Eagle LNG says, though, that it can provide for many years.” “
a more economical solution. It has pointed out The deal between
that it will be able to make LNG available at Learning by example
attractive prices, partly because its Jacksonville The success of this arrangement is not yet Eagle LNG and
plant will have access to the ample volumes of assured.
cheap gas flowing out of fields in the Permian For one thing, Eagle LNG has not yet made a Barbuda Ocean
Basin and other US production hubs and partly final investment decision (FID) on the construc- Club could serve
because the plant is close enough to the Carib- tion of the Jacksonville LNG plant. It is slated to
bean to keep shipping costs low. do so before the end of the year, but it will not as a template for
These savings are an important consideration be able to commit fully to the supply deal with
for Barbuda Ocean Club – and its owner, Dis- Barbuda Ocean Club until it takes this step. other Caribbean
covery Land Partners. This is a risky time to be For another, Barbuda Ocean Club is not yet
launching a business that depends on travel and in a position to determine whether it will be able states looking
tourism, both of which have taken a big hit this to ride out the pandemic-driven decline in travel for ways to
year because of the coronavirus (COVID-19) and tourism. It may not even be able to make
pandemic. As such, the resort has good reasons a good guess on this front until infection rates support the
to economise on fuel if it wants to maximise its drop and more information becomes available
chances of success in the near term (and maxim- on the timing and availability of vaccines and recovery of the
ise profit margins in the long term). treatments for COVID-19.
Assuming that these hurdles can be sur- tourism sector
Environmental advantage mounted, though, the deal between the LNG
But cost is not the only consideration. Sean producer and the resort could serve as a tem-
Lalani, the president of Eagle LNG, pointed out plate for other Caribbean states looking for ways
the environmental advantages of LNG. to support the recovery of the tourism sector.
“We are pleased to partner with Barbuda That is, it could serve as an example for other
Ocean Club on this important project,” he was resort facilities that are eager to keep costs down
quoted as saying in the October 26 statement. and to have a good answer for potential custom-
“This project demonstrates our commitment ers concerned about their carbon footprints.
to provide low-cost energy, which enables eco- Eagle LNG seems to hope that others will
nomic growth and recovery in Barbuda and sim- learn from Barbuda Ocean Club’s experience. In
ilar places. The Barbuda turn-key investment is the statement, Lalani stressed that his company
one of several turn-key solutions Eagle LNG is was willing and able to supply other Caribbean
developing in the Caribbean Basin for utility and customers with competitively priced fuel.
industrial clients. In providing lowest-cost, fully Eagle LNG’s operations have the potential
integrated US natural gas solutions, Eagle LNG to “[spur] economic recovery for the region as
is committed to a low-carbon future.” the world works to emerge from the COVID-19
Likewise, Michael Meldman, the chairman pandemic and [foster] closer ties between Flor-
and CEO of Discovery Land Partners, empha- ida and the United States and our neighbours
sised that the choice of LNG over petroleum throughout the region,” he said. “We are pleased
products had positive implications for the envi- to be a leading energy developer in the region
ronment on Barbuda. “Partnering with Eagle and look forward to providing low-cost, flexible
LNG is the best solution for our members as energy solutions to numerous other clients.” ™

LNG could be an attractive low-cost fuel for other Caribbean resorts (Photo: Barbuda Ocean Club)

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