BAHAMAS ELECTRICITY CORPORTATION

Fuel Oil / Energy Buyers Conference Miami Beach October 25th 27th 2009

The Beginning
The Bahamas Electricity Corporation was
established 52 years ago and is fully owned by the Government of The Bahamas. It was formed out of the Electrical Department which had its beginnings 100 years ago in 1907.

MANAGEMENT.
A Board of Directors provides general
direction and oversight and the interest of the owner (the Government of The Bahamas) An Executive Committee led by the General Manager Mr. Kevin Basden provides direct management.

Power Generation Machinery

All generation of electrical power is
produced either by Large slow speed diesel generators Combustion turbines in either simple cycle or combined cycle mode. Medium speed or high speed diesel generators

GENERATION CAPACITY
All electrical generation is thermal, using either a

#6 residual fuel (RMG35) or a #2 gas oil (DMB) There is a total installed electrical generation capacity of 450 Megawatts. 350 Megawatts is located on the island of New Providence which is the commercial centre and where 66% of the total population reside. The remaining 100 Megawatts is spread over 26 power stations located on 15 island groups.

Generation Capacity (New Providence)

There are two power stations on the island of

New Providence which also provide power for the tourist resort of Paradise Island. Clifton Pier Power Station located at the southwest end of the island and adjacent to the bulk oil terminal of Exxon, Chevron and SUN OIL (Shell licensee) Blue Hills Power Station located in the centre of the island and connected to Clifton Pier by two six-inch fuel pipelines.

Generation Capacity (New Providence) Clifton Pier Power Station

Clifton Pier Power Station (175 Mws)

consists of 9 slow speed diesel engines. 4 of Sulzer design at 10.7 Mws each 2 of Burmeister & Wain design at 26.5 Mws each 2 of Burmeister & Wain design at 31.5 Mws each. 1 of Burmeister & Wain design of 18 Mws.

Generation Capacity (New Providence) Blue Hills Power Station

Blue Hills Power Station (175 Mws) consists of 5
simple cycle combustion turbines and 1 combined cycle unit consisting of 2 combustion turbines feeding 1 steam unit. 4 Hitachi turbines at 23.5 Mws each. 3 General Electric turbines @ 18, 20 and 21Mws. 1 Kawasaki steam turbine at 22 Mws powered by 2 of the Hitachi turbines.

Generation Capacity (Family Islands)

Exuma 4 Power Stations Great Harbour Cay 1 Power Station Long Cay 1 Power Station Long Island 1 Power Station Mayaguana 1 Power Station Rum Cay 1 Power Station San Salvador 1 Power Station Inagua 1 Power Station

Generation Capacity (Family Islands)

Abaco 4 Power Stations Acklins 2 Power Stations Andros 3 Power Stations Bimini 1 Power Station Cat Island 1 Power Station Crooked Island 1 Power Station Eleuthera 3 Power Stations

FUEL OIL CONSUMPTION (New Providence.)

Currently, all fuel oil consumption is on the

island of New Providence being burnt in the slow speed diesels. There are plans to also burn fuel oil in the new power station that will be built on the island of Abaco. It is anticipated that the use of fuel oil may be migrated to other islands as machinery is replaced. The driving factor for this would be the relative cost compared to the gas oil currently being consumed.

FUEL OIL CONSUMPTION (New Providence.)

1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0

Kilo-Barrels

2004

2005

2006

2007

2008

GAS OIL CONSUMPTION (New Providence.)

Gas oil consumption on New Providence is
in the combustion turbines as well as a limited quantity for start-up and shut down of the slow speed diesels.

GAS OIL CONSUMPTION (New Providence.)

1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0

Kilo-Barrels

GAS OIL CONSUMPTION (Family Islands)

600,000 500,000 400,000 300,000 200,000 100,000 0 2004 `2005 2006 2007 2008 Barrels

FUEL OIL QUALITY

TEST (Method) UNIT LEVEL Heavy Fuel Oil
991.0

Density @ 15 C (D 1298)

Kg/m3

max/min

Aluminum + Silicon (D 5184)

mg/kg

max

60

API Grav @ 60F (D1298)

API

min/max

11.2

Ash (D 482) Conradson Carbon (D 189) Flash Point (D 93)

mass % mass %

max max

0.10 16

min

65

FUEL OIL QUALITY

Kinematic Viscosity @ 50C (D 445) Kinematic Viscosity @ 40C (D 445) Cetane Index (D 4737) C % vol min Not applicable Pour (D 97) Water Distillation (D 95) Sulphur (D 4294) % wt max 1.5 max max 15.5 1.0 CSt Min/ma x Not applicable cSt max 360

Sodium (AA) Sodium + Potassium (AA) Vanadium (AA)

mg/kg mg/kg

max max

100 100

mg/kg

max

350

FUEL OIL QUALITY

GCV (D4868) Compatibility (D 4740) CCAI Sed. Aged Hot Filter (D 4870) potential Distillation Range (90% fuel recovery) (D 086)
o

Btu/lb mass %

min max max max

18000 No. 2 Report 0.10

max

FUEL OIL QUALITY ISSUES

The major concerns over heavy fuel quality are:
Parameter Concern

Density
Aluminum + Silicon CCAI

Must be less than 991 for ease of centrifuge function. Kept to a minimum to prevent cylinder liner scuffing.
Preferably below 850 to avoid ignitability problems

GAS OIL QUALITY

TEST (Method) UNIT LEVEL Light Diesel Oil Density @ 15 C (D 1298) Aluminum + Silicon (D 5184) API Grav @ 60F (D1298) Ash (D 482) Conradson Carbon (D 189) Flash Point (D 93) Kinematic Viscosity @ 50C (D 445) C cSt min max 60 Not applicable mass % mass % API min/m ax max max .005 0.25 mg/kg Kg/m3 max/m in max 870.3 841.8 Not applicable 31 36.5

GAS OIL QUALITY

Kinematic Viscosity @ 40C (D 445) Cetane Index (D 4737) Pour (D 97) C min max 45 Not applicable Water Distillation (D 95) Sulphur (D 4294) % wt max 0.5 % vol max 0.05 CSt Min/ma x 1.5/6.0

GAS OIL QUALITY

Sodium (AA) Sodium + Potassium (AA) Vanadium (AA) GCV (D4868) Compatibility (D 4740) mg/kg Btu/lb max min max 0.5 19200 Not applicable CCAI max Not applicable Sed. Aged Hot Filter (D 4870) potential Distillation Range (90% fuel recovery) (D 086)
o

mg/kg mg/kg

max max

1 1

mass %

max

Not applicable

max

345

GAS OIL QUALITY ISSUES

The only issue recently over gas oil quality was :
Parameter Cetane Concern Ensure ignitability particularly because we operate a mix of medium and high speed diesel engines from various manufacturers

Requirements for next two years Barrels.

2008/2009 2009/2010

Fuel Oil

1,433,621

1,473,903

Gas Oil

1,491,140

1,607,639

FUEL SOURCES
The Bahamas has no oil of its own and all fuel is

imported. Traditionally, the bulk fuel supplier has been one of the local three major oil companies, Shell, Esso or Texaco/Chevron. These local entities would establish joint ventures with their larger trading partners to meet the supply demand. The fuel tendering process has now been opened up to the international market.

BERTH REQUIREMENTS
This Sea Berth is designed to accommodate
Tankers of up to 45,000 DWT, with a maximum length of 630 ft., 225 ft. vessel parallel mid-body in normal ballast, a freeboard of 9.0-ft. and a maximum draft of 35 ft. 9 inches The term tug means a vessel designed for assisting vessels with docking and undocking in restricted waters and an available horsepower of 2500 hp or greater. These tug requirements are considered the minimum acceptable by the berth operator.

Clifton Pier Deep Water Berthing Facility

BERTH Weather Limitations

Wind:
15 - 20 mph 20 - 25 mph SSE - WNW 4' - 6' Pilot to be notified 25 - 30 mph/ SSE - WNW > 6' Port closed

greater Direction: SSE to WNW Seas: 2' - 4' ok to berth vessel

LOGISTICS New Providence

Being an archipelago spread over an area

roughly the size of Florida, all fuel supply is waterbourne. Bulk supply for both New Providence and Family Island consumption is by ocean going tanker to the deep water port at Clifton Pier where the Clifton Pier Power Station is located. Gas oil is delivered to the Blue Hills Power Station on New Providence via two 6 underground pipelines

LOGISTICS Family Islands

Gas oil is delivered to 26 power stations on 15

islands by intercoastal tanker. This is the responsibility of the bulk fuel supplier who enters into an agreement with a third party that charters purpose built vessels. The schedule of deliveries is managed by BEC providing weekly updates of the inventories and burn rates at each location.

LOGISTICS (Family Islands) Difficulties

The intercoastal tankers take on fuel at the
Clifton Pier loading facility. Each of three ships have a capacity of between 160,000 to 210,000 gallons. (3,800 5,000 barrels) Some locations however cannot accommodate the vessel fully laden. The vessel would then first off-load some of its product at a port with deeper draft before proceeding on to the shallower draft facilities.

Inter-Coastal tanker Family Island Deliveries.

LOGISTICS (Family Islands) Difficulties

Further difficulties exist since there is a
wide variation in consumption patterns for many of the locations depending on the time of year and whether any local festivals are occurring. These generally take the form of regattas, deep sea fishing tournaments, homecomings, or crab festivals.

LOGISTICS (Family Islands) Difficulties

Weather plays an important part in the delivery to Family
Islands. A case in point was during the last hurricane season, deliveries were delayed at several locations up to 11 days due in part first to Hurricanes Gustav, Hanna, and Ike There are also the concerns of safety which prohibit pumping outside daylight hours.

Communication issues between each location and the

ship. Inventory coordination at each location

BULK DELIVERIES
Heavy Fuel Oil shall be delivered in
quantities of 130,000 to 160,000 barrels.

Gas Oil shall be delivered in quantities of

90,000 to 120,000 barrels.

BILLING & PAYMENT

Billing is based on the low waterbourne US
Gulf Coast postings in the Platts Oilgram The pricing to be on batch basis determined by the average of the five-day postings surrounding and inclusive of the bill of lading date Payment is required within 30 days with interest penalty charges thereafter.

ANTICIPATED CHANGES
BEC is in the preliminary stages for the design and

construction of two additional large slow speed diesels at Clifton Pier. These machines, rated at 40 Megawatts each will displace much of the current gas oil consumption with heavy fuel oil and cater to the rising demand for power. The Government is also actively considering the approval of a bulk LNG facility to provide LNG to the state of Florida via submarine pipeline. If approved, this project may make available a quantity of LNG for our combustion turbines.

 Thank you. Should there be any questions, I can be

contacted at: cnbethel@bahamaselectricity.com

C.N. DeCosta Bethel

Assistant General Manager- Energy Supply Bahamas Electricity Corporation