Identifier
Created
Classification
Origin
09NASSAU135
2009-03-05 19:44:00
CONFIDENTIAL
Embassy Nassau
Cable title:  

BAHAMAS UPDATE ON LNG PIPELINE PROJECT

Tags:  ECON ENRG BF 
pdf how-to read a cable
VZCZCXYZ0017
RR RUEHWEB

DE RUEHBH #0135 0641944
ZNY CCCCC ZZH
R 051944Z MAR 09
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHDC 6170
INFO RUCNCOM/EC CARICOM COLLECTIVE
C O N F I D E N T I A L NASSAU 000135 

SIPDIS

STATE FOR WHA/CAR

E.O. 12958: DECL: 03/05/2019
TAGS: ECON ENRG BF
SUBJECT: BAHAMAS UPDATE ON LNG PIPELINE PROJECT

Classified By: CHARGE ZUNIGA-BROWN FOR REASONS 1.4(B) AND (D).

C O N F I D E N T I A L NASSAU 000135

SIPDIS

STATE FOR WHA/CAR

E.O. 12958: DECL: 03/05/2019
TAGS: ECON ENRG BF
SUBJECT: BAHAMAS UPDATE ON LNG PIPELINE PROJECT

Classified By: CHARGE ZUNIGA-BROWN FOR REASONS 1.4(B) AND (D).


1. (C) Charge Zuniga-Brown met with AES representatives
Brian Chatlosh and Neil Watlington on March 4 to discuss the
proposed LNG pipeline project from the island of Ocean Cay to
southern Florida. The proposed project has been in
negotiation between AES and the Government of the
Commonwealth of the Bahamas (GCOB) for at least seven years,
with initial discussions beginning during the previous Free
National Movement (FNM) administration. Chatlosh and
Watlington said the GCOB has expressed concerns as to why the
LNG project is being built in The Bahamas and not in the
United States. The expected revenue for The Bahamas, should
they agree to the project, is USD 10 million up front, with
substantial royalties to follow.


2. (C) A prior AES representative to The Bahamas told
econoff that the GCOB has demonstrated even less action
towards
the LNG project in the past six months as a result of the
economic downturn the country is facing. In an effort to
speed the decision making process along, AES proposed
constructing an additional LNG pipeline from Ocean Cay to New
Providence at no cost. The former AES representative noted
that when this idea was presented to Prime Minister
Ingraham, the PM said he "wouldn't be pushed into doing it."
Due to the technological challenges and associated costs
AES has subsequently decided to forego that idea. As a
result, there is no planned proposal to construct a pipeline
through the "tongue of the ocean".


3. (C) Chatlosh and Watlington indicated they are organizing
a new strategy for obtaining GCOB approval of the project,
but that they do not intend to aggressively pursue the issue
quite yet. In the meantime, Chatlosh and Watlington said
they intend to review other ancillary projects on Ocean Cay,
including a rest stop for cruise ships and reopening
mining operations on the island.
ZUNIGA-BROWN