Prime Minister Dr. Luc Mercelina.
PHILIPSBURG--Government’s immediate priority is stabilizing the electricity grid and ensuring the consistent provision of power to residents and businesses, rather than pursuing a transition to liquefied natural gas (LNG) at this time, Prime Minister Dr. Luc Mercelina told Parliament on Monday.
He made the statement during Question Hour in Parliament in response to a series of questions from United People’s party (UP) Member of Parliament (MP) Francisco Lacroes on national strategy for fuel diversification, LNG transition, public utilities, and the implementation of community benefits
Mercelina said government has not requested a comprehensive fuel diversification plan from NV GEBE or the Port St. Maarten Group, explaining that “the current focus of government has to be stabilisation and consistent provision of electricity for the people and businesses of St Maarten.” He said both entities had been asked to share their views on fuel diversification to help inform government decision-making.
Addressing harbour operations, Mercelina explained that Port St. Maarten Group functions primarily as a facilitator and service provider to cruise and cargo vessels, while fuelling services are carried out by third-party companies. Any diversification of fuel usage at the port, he said, would depend on demand from carriers and be facilitated by service providers in consultation with the port authority.
He said the port is engaged in discussions with cruise lines and stakeholders, taking into account environmental, social, and governance priorities and the cruise industry’s commitment to achieving carbon neutrality by 2050. These discussions include electrification of port operations, expansion of solar and wind energy, waste-to-energy initiatives, and collaboration on future alternative bunkering options.
On electricity generation, Mercelina referred to the Least Cost Power Development Plan prepared by Energynautics, which analysed fuel options for power generation. He said the study found that diesel generators operating on heavy fuel oil offer cost advantages and reduced consumption compared to light fuel oil.
While the generators are technically capable of operating on natural gas, he said that transitioning to LNG had not been evaluated as viable due to the significant capital investment required, particularly for infrastructure and LNG re gasification facilities. He added that the study had found small-scale LNG to be less efficient and more costly under current assumptions.
Mercelina said government is working to ensure NV GEBE complies with its electricity concession, issued in 2010 for a period of 25 years, noting that several required actions have not yet been implemented. These include the submission of a multi-annual operations and investment plan, renewable energy targets, and the publication of quality measurements (see related story).
He reiterated that no tender has been issued for fuel or transport process proposals related to income generation or cost reduction for the harbour or the GEBE power plant, and that no feasibility study has been initiated on LNG fuelling for ships that have already transitioned to LNG.
Mercelina further stated that the shareholder has not imposed a deadline on NV GEBE to explore the technical or financial feasibility of transitioning from heavy fuels to LNG, emphasizing again that “priority will be given to actions that are needed to stabilize the electricity supply to our people and businesses.”
On cruise ships using local fuel or electrical power while docked, he said this can only be considered after the electricity supply for residents and businesses is secured. He said additional generating capacity is being procured, which is expected to ensure stable electricity access for the next five to ten years, alongside investments by GEBE and consumers in solar panels.
Regarding electricity tariffs, Mercelina said NV GEBE had conducted a comprehensive tariff study that recommends safeguards to ensure affordability and competitiveness, including cost-reflective tariffs, benchmarking against Curaçao, Aruba, Saba, and St. Eustatius, monthly fuel clause adjustments, and progressive block tariffs to protect low-income households. He added that government is in the process of mandating tariff regulation to ensure electricity prices are cost-based, taking both fixed and variable expenses into account.
On community benefits related to sporting facilities, Mercelina said discussions between the Ministry of Education, Culture, Youth and Sport and NV GEBE had taken place prior to the passing of former Minister Troy Washington, but no further discussions have occurred since. As a result, no agreements, contributions, or equipment allocations have been finalised.
He acknowledged that no progress reports required under a parliamentary motion have been compiled, saying that government remains focused on grid stabilization and the consistent provision of electricity.
He said government’s vision is to bring “stability and sustainability and affordability to the energy supply in St. Maarten,” noting that investments in renewable and alternative energy sources will form part of that effort.
