Limit on new terminals
NO more terminals must be constructed in Barbados for the storage and handling of petroleum products for at least 15 years!
That’s one of the conditions for the proposed sale of the Barbados National Terminal Company Limited (BNTCL), an issue that is now before the Fair Trading Commission.
Both SOL and Rubis are seeking to acquire the BNTCL, which is owned by the Government of Barbados. Government which owns the BNTCL is hoping to push through its sale for at least Bds$200 million.
In a paper dealing with the proposed sale, the FTC said that to maintain the most efficient terminal solution, a condition of “the transaction is the implementation by the Government of Barbados, of a 15-year moratorium on the construction of terminals for storage and handling of products currently being stored and handled by the BNTCL”.
The commission has said that any new investment in terminals will require a return to the investor and the operation of such facilities will have its own operating expenses.
In fact, the net impact, the commission explained is a greater cost to consumers in support of facilities that are not required.
“This is further compounded by the imminent reduction in the consumption of traditional fuels in favour of renewables and clean burning gas, both of which will reduce the volumes throughputted,” said the FTC.
BNTCL which became operational in 2005 at Fairy Valley, Christ Church, is said to be adequately sized to efficiently, safely and reliably store and throughput all petroleum products except LPG, imported into Barbados and to store and export the crude produced in Barbados.
“As such there is no need for additional capital to be invested in new or additional terminalling facilities,” the Commission added. (JB)