With the help of the federal government, the Puerto Rico Electric Power Authority moved a step closer Friday to opening an important natural gas port that would lower its operating costs.
The Federal Energy Regulatory Commission released the final environmental impact statement for PREPA's proposed Aguirre Offshore Gasport Project. The opening of the gas port off the southeast coast and the conversion of the nearby Aguirre power plan to natural gas from oil are the authority's two most important near-term capital projects, the authority leadership has said.
The authority is attempting to switch to gas from oil as fast as possible because they believe gas will be a cheaper way of generating electricity over the long term.
PREPA owes roughly $8.7 billion in bonds. It is in a financial crisis and has hired a chief restructuring officer.
In the statement, FERC staff found the project with mitigation measures "would result in limited adverse environmental impacts."
The port is proposed for three miles off the coast of Puerto Rico, near Salinas and Guayama. Also part of the proposal is a 4.1 mile long subsea pipeline connecting the gas port to the Aguirre plant. The port would also include a floating storage and regasification unit moored at the gas port on a semi-permanent basis.
FERC released a draft version of the statement in August 2013. Now that a final version has been adopted, FERC commissioners will decide whether to approve the project and if so, what conditions to place on the project.
In December 2013 PREPA president Juan Alicea Flores said the authority planned to complete the gas port by summer 2015 and the conversion of the Aguirre plant to natural gas by April 2015.
