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Charlotte Amalie
Thursday, March 28, 2024
HomeNewsArchivesWAPA ‘On Target’ for Alternative Fuel Contract

WAPA ‘On Target’ for Alternative Fuel Contract

The V.I. Water and Power Authority is on the verge of signing a contract with a liquefied petroleum gas or propane provider, officials said this week.

At a meeting with the WAPA board Monday, the authority’s executive director, Hugo Hodge Jr., said a contract should be signed by April with at least one of the bidders to a Request for Qualifications issued last October for companies able to supply liquefied natural gas or propane.

Hodge told board members that successful meetings held on the mainland last week with bidders will allow the authority to move quickly toward finding an alternate fuel solution.

Trafigura AG, Vitrol and Geogas/Polaris are the three companies being eyed by WAPA as a possible propane provider, while Pacific Rubiales, Gasfin, LNG Enterprises and Cheniere are in the running for possible liquefied natural gas providers. According to officials, the cost of liquefied petroleum/propane makes it an “attractive alternative” to fuel oil.

Hodge said that the authority will be actively pursuing both options and looking at moving to a tri-fuel system that will burn propane, natural gas and diesel fuel, depending on what meets WAPA’s needs and current market prices.

The successful bidder will cover the cost of converting WAPA’s current system, which should take about 18 months after a contract is signed, Hodge said. The extra time would allow the authority to get its required air quality approvals and construction permits, enabling the authority to a get a contract for natural gas signed by the middle of summer.

More specific pricing information will be coming from the seven finalists, who will also soon be making site visits, officials said.

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