Page 12 - GLNG Week 43 2020

GLNG COMMENTARY GLNG

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

P12 www. NEWSBASE .com Week 43 30•October•2020