Page 11 - GLNG Week 43 2020

GLNG COMMENTARY GLNG

Eagle LNG’s Barbuda deal

fuels Caribbean ambitions

The company intends to supply a new resort on the island of

Barbuda with LNG from its liquefaction plant in Jacksonville

PROJECTS & US-BASED Eagle LNG Partners has taken a step previous reports, Eagle LNG’s Jacksonville facil-
COMPANIES towards realising its goal of becoming a key sup- ity will be able to turn out around 1mn tonnes
plier of LNG to buyers in the Caribbean region. per year (tpy) of LNG. It is also slated to sell its
WHAT: On October 26, the company announced that output in relatively small batches, loading fuel
Eagle LNG and Barbuda it had signed a long-term agreement with Bar- in standard-sized shipping containers or trailers
Ocean Club have signed a buda Ocean Club, the operator of a new resort that can be moved from one port to another and
long-term agreement on community operated by Scottsdale, Arizo- delivered by truck to end-users – unlike most
LNG supplies. na-based Discovery Land Partners on the island large-scale LNG producers, which rely on some
of Barbuda. In a statement, Eagle LNG said it combination of tankers and pipelines.
WHY: had agreed to supply the resort with LNG from
The resort sees LNG as a the gas liquefaction plant and export facility that Cost advantage
low-cost, low-impact fuel it hopes to build in Jacksonville, Florida. In other words, the agreement with Barbuda
for electricity generation. It also explained that it had agreed to provide Ocean Club is not going to be setting any world
an integrated turn-key solution for delivery records. Even so, it does represent significant
WHAT NEXT: and regasification of the LNG, which Barbuda potential savings for the resort.
The deal could help Eagle Ocean Club intends to use as a fuel for power Like most Caribbean islands, Barbuda has
LNG expand its business generation. traditionally relied largely on petroleum prod-
in the Caribbean, while ucts, especially residual fuel oil, for power gen-
reducing the cost of Small in scale eration. And like its neighbours, it has had to
efforts to revive the The statement did not reveal many details of the import these products, since it does not have
tourism sector. long-term agreement. any commercial crude oil reserves or refining
It did not, for example, reveal the value or the capacity of its own. As a result, it has had to pay
duration of the deal. It did not say exactly how dearly for fuel in order to produce electricity.
much LNG it would be sending to the resort or Eagle LNG says, though, that it can provide
mention the capacity of the planned regasifica- a more economical solution. It has pointed out
tion facilities. Nor did it divulge the generating that it will be able to make LNG available at
capacity of the power station on Barbuda that attractive prices, partly because its Jacksonville
will utilise the regasified LNG. plant will have access to the ample volumes of
Presumably, the amounts of gas and money cheap gas flowing out of fields in the Permian
involved are relatively small. According to Basin and other US production hubs and partly

Week 43 30•October•2020 www. NEWSBASE .com P11