INTRODUCING LIQUEFIED NATURAL GAS (LNG)
LNG is a clear, non-toxic liquid, which is the result of cooling natural gas. Cooling the gas to make liquid helps store and transport it to remote locations and islands, such as Bermuda, who do not have ready access to gas fields.
Why introduce LNG?
- Natural gas is the cleanest burning fossil fuel and due to the vast gas fields being developed around the World it will be cheaper than fuel oil in the decades to come.
- Fuel oil prices are more volatile than natural gas prices and this is a burden on our customers.
- The overall environmental benefits of LNG are significant – reducing the Carbon emissions would be the equivalent of taking all the vehicles off of Bermuda’s roads.
- The replacement generation and introduction of LNG will help to save approximately $26 million per year in maintenance, lubricants and fuel needed to continue running the existing aged generators.
Within three years, introduce liquefied natural gas to Bermuda through a competitive LNG procurement process with appropriate governance oversight.
What are the details?
- Undertaking a competitive bidding process to select a vendor to build, operate and maintain an LNG import terminal and gas transmission pipeline to BELCO’s central plant; and
- Undertaking a competitive bidding process to select a vendor for the delivery of LNG supply via ship to the terminal port.
- LNG will stabilize the cost of electricity for customers because long-term, low cost, fixed commodity contracts can be negotiated. This will reduce the volatility of the fuel costs to generate electricity.
- The overall environmental benefits are significant (i.e. emission reductions of 99% for sulfur dioxide, 85% for nitrogen dioxide, 99% for particulates and 32% for carbon dioxide – the equivalent of taking all cars off of Bermuda’s roads). Additionally, using LNG would improve efficiency and reduce the environmental impact by allowing the use of a waste heat recovery steam generator to create additional electricity.
- There is greater potential for additional distributed generation (i.e. combined heat and power distributed generation plants located on customer sites that have high electrical and heat demand).
- Having a steady supply of LNG brings other commercial options for Bermuda.
"With the replacement generation and transition to liquefied natural gas, we will save approximately $26 million each year."
DIRECTOR PROCUREMENT & LOGISTICS
"As power generation evolves, liquefied natural gas is used more. It is more efficient, safer for the environment and cost effective."
WASTE & WASTE WATER PROCESS CONTROLLER
"The older the generator, the harder it is to ﬁnd the correct manufactured part. Sometimes we have to fabricate parts to make it work."
SPECIALIST ELECTRICAL FITTER
"The old power station has seen its time…the challenges that exist are real."
"Working with the older generators is ineﬃcient – they’re a challenge to work on every day and as they age, more problems occur."
SPECIALIST MECHANICAL FITTER
"Some days can be frustrating. We trouble shoot the same issues over and over."
FOREMAN - PLANT OPERATIONS
"With the replacement generation, fuel emission levels will drop considerably. There will be a positive impact on the environment and for the population of Bermuda."
SENIOR PLANT ENGINEER
"Once we convert to liquefied natural gas, we will have a more stable electricity rate moving forward."