Prime Minister Gaston Browne has said Antigua and Barbuda is in advanced discussions with St Kitts-Nevis and the European Union on a regional energy cooperation arrangement that could eventually deliver geothermal power to Antigua via an undersea transmission line from Nevis, as he prepares to assume the chairmanship of the Organisation of Eastern Caribbean States (OECS).

Browne said the discussions, which he described as serious and ongoing, involve the EU advancing several hundred million US dollars to St Kitts-Nevis to develop its geothermal capacity, with Antigua and Barbuda committing to purchase power from the project to help establish its commercial viability.

“We have said to the European Union that we will buy the power from St Kitts-Nevis — to ensure that it’s commercially viable,” Browne said.

He said geothermal energy would offer Antigua a stable baseload power supply not subject to the price volatility that has made fossil fuel dependency costly for small island states.

He pointed to the current situation, in which the government is subsidising fuel prices at the pump rather than collecting a 15 percent tax on fuel sales, as evidence of the economic burden created by reliance on petroleum.

St Kitts-Nevis has secured US$37 million from the Caribbean Development Bank, the Inter-American Development Bank and the Saudi Fund for Development to fund production drilling at Hamilton Estate in Nevis, with drilling expected to begin in 2026.

The Nevis Electricity Company Limited is targeting a 30-megawatt geothermal plant from the project.

Browne said assuming the OECS chairmanship next month would allow him to push for deeper collaboration across the sub-region on energy, trade, logistics and joint diplomatic representation.

He also indicated he had been in discussions with a major global shipping company about transforming Antigua’s port into a regional transshipment hub, with an agreement expected within 30 days.

“Better energy costs means that manufacturing becomes more viable. It also means that living costs will be reduced because that’s one of the most significant factors that is contributing to relatively high costs of living within the region,” Browne said.

He said the OECS countries spend hundreds of millions of US dollars annually on petroleum imports and argued that consolidating around geothermal and other renewable sources would free up the fiscal space for social development across the sub-region.

Browne also said he would push for OECS countries to consolidate diplomatic representation in capitals where individual missions are not economically justified, and to coordinate procurement to benefit from economies of scale.

He indicated he had longer-term aspirations for OECS political union, while acknowledging such an outcome was generational rather than near-term.

“We’re starting from now, not necessarily to drive a political union at this point, but to set the framework for one in the future so that future generations can take this thing to the next level,” Browne said.