The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE first phase of a Freeport-based hydrocarbon recovery plant will be operational by mid-2013, the Grand Bahama Port Authority’s chairman adding that Morgan Oil faced competition from two rival entities seeking to enter the business.

Speaking at the Grand Bahama Business Outlook, Ian Fair said: “Within a few months Morgan Oil will enter the local market with a project that entails the collection and treatment of marine waste, such as sludge and oil slops.

“Their license has been approved, the land lease agreed, an environmental impact study is being finalised, contracts have already been signed with major shipping agents, a barge and tug boat has been commissioned and is ready to collect the waste oil. We expect the first phase of the hydrocarbon recovery plant to be operational by mid-2013.”

Mr Fair added: “There is competition for this business, with two other interested and qualified parties. So, this is not a one horse race. Competition is good for all of us.”

Tribune Business reported last week that the Freeport-based oil recovery plant was 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.

UK-based TXO Plc holds a more than-30 per-cent stake in Grand Bahama Group, which is the wholly-owned subsidiary of Morgan Oil Marine (Bahamas).

Tim Baldwin, chairman of UK-based TXO Plc, told his company’s annual general meeting (AGM) last week that Morgan Oil Marine had signed two ‘five-year’ oil recovery contracts in recent weeks.

He added that Grand Bahama Group was in negotiations with other multinationals to process the ‘slop’ and other waste oils generated by ships calling on Freeport.