LNG Plant Moves Closer to Full Operations as Dredging Nears Completion

The long-delayed dredging channel at Crabbs Peninsula is approximately 98 percent complete, with Minister of Utilities and Energy Melford Nicholas saying LNG vessels should be moving through the channel by June, finally bringing the US$50 million power plant into full operation.

Nicholas made the announcement during an appearance on ABS Television’s Monday Meeting with the Minister programme, noting that the remaining work is concentrated in the turning basin, the section of the channel where vessels manoeuvre, which he expects to be cleared within five weeks.

“I anticipate that certainly by June, there should be movement of vessels within that particular channel to be able to bring the LNG plant into full operation,” Nicholas said.

The plant, a joint venture between the Antigua Public Utilities Authority (APUA), the Hadeed Group’s Antigua Power Company (APC), and Houston-based Eagle LNG, has been ready for operations for some time.

Dredging complications have been the sole obstacle preventing LNG vessels from accessing the facility, with Director General of Communications Maurice Merchant previously confirming the plant stands ready but that access through the channel remains the critical outstanding issue.

The dredging work has encountered challenges with the rocky composition of the sea floor, with Blue Ocean Dredging working alongside a supplementary company to address the hard material.

As of December 2025, a €1.1 million Caterpillar 6015 excavator purchased in the Netherlands had arrived to assist, with approximately 150,000 cubic metres of dredging still required at Crabbs Harbour at that time.

The government had previously brought in Dutch Dredging to supplement Blue Ocean’s work, though Cabinet received reports that the additional company’s equipment proved less effective than the primary contractor’s machinery.

The project carries broad implications for electricity costs and energy security.

The 40-megawatt dual-fuel plant, equipped with five Wärtsilä 34DF engines capable of operating on either gas or light fuel oil, is projected to produce 40 percent less carbon emissions than the existing generation infrastructure.

Nicholas told ABS that a 25 percent reduction in fuel costs, modelled on results already achieved in Barbuda’s hybrid power system, would translate to approximately EC$60 million in annual savings for APUA.

Beyond power generation, the facility is intended to function as a regional LNG terminal capable of supplying cruise ships and other LNG users across the sub-region, positioning Antigua and Barbuda as an energy hub for the Eastern Caribbean.

APC Chairman Francis Hadeed has previously indicated that once the plant is fully operational, LNG can be loaded into ISO tankers on-site and exported to Barbuda, St Kitts, and other islands across the region.

The deeper channel will also benefit the cement industry, accommodating larger vessels carrying cement to Crabbs, a commodity currently in such short supply that deliveries by smaller vessels sell out within 24 hours.

Nicholas acknowledged that global oil price increases tied to the Middle East conflict have added urgency to the transition.

He said APUA is currently holding electricity prices stable and absorbing the additional fuel costs but noted the arrangement cannot continue indefinitely if prices continue to climb.

He said the shift to LNG, combined with planned solar expansion targeting a 50-megawatt system over the next three to four years, forms the foundation of the country’s long-term energy independence strategy.