The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Freeport-based oil recovery plant is in talks with the Grand Bahama Port Authority (GBPA) over design modifications designed to facilitate its future expansion, having received inquiries about processing 500,000 gallons of ‘slop’ in the past six weeks.

Tim Baldwin, chairman of UK-based TXO Plc, which holds a more than-30 per-cent stake in Grand Bahama Group, the plant’s developer, told his company’s annual general meeting (AGM) this week that the latter had signed two “five-year” oil recovery contracts in recent weeks.

Adding that Grand Bahama Group was in negotiations with other multinationals to process the ‘slop’ and other waste oils generated by ships calling on Freeport, Mr Baldwin said the company was already eyeing potential future expansion.

“The Board of Grand Bahama Group feel that a scalable plant capable of further expansion should be considered,” Mr Baldwin said.

“To this end, its Board is to meet and consider revisions to its existing proposals with the Grand Bahama Port Authority. This is not expected to cause any material delay to the build programme, and the hydrocarbon recovery plant is still scheduled to be operational later this year.”

Grand Bahama Group’s project is a value-added spin-off from Freeport’s existing industrial businesses, such as the Freeport Container Port, Grand Bahama Shipyard and BORCO.

Its hydrocarbon recovery plant will process and recovery the ‘slop’ and waste oil generated by vessels calling on these facilities, which are thought to number in total 4,800 per annum.

The processed oil will then be on-sold to potential customers such as the Grand Bahama Power Company.

The disclosure that Grand Bahama Group is already mulling future growth and expansion will be seen as a vote of confidence in Freeport’s economy at a time when it needs such developments the most.

The company is likely to be basing such expansion on the impending 2014 completion of the Panama Canal expansion, which BORCO believes will increase tanker traffic by 20-30 per cent.

Detailing further developments at Grand Bahama Group, Mr Baldwin added: “Grand Bahama Group recently secured, on long-term charter, Barge Martha, a 200 foot, 350 metre barge, with over a one million gallon capacity.

“Martha is proving to be an excellent investment and is ideally suited to offloading larger quantities of ships’ slops from tankers visiting the Shipyard and the main oil terminal on the island.

“Since February 1, Martha has received inquiries for offloading in excess of 500,000 gallons. In order to secure its long-term productivity, Grand Bahama Group plans to dry dock the barge and repaint its hull, which should also allow for branding to further promote the company services.”

With Grand Bahama Group having made “excellent progress” in developing its Freeport-based waste oil and hydrocarbon recovery plant, Mr Baldwin reiterated that TXO had an option to increase its equity stake in the company to 43.18 per cent by 2013 year-end.