The viability of the Grand Bahama-based refinery project is underpinned by several critical factors, including its strategic location, streamlined design, and the burgeoning availability of U.S. light-sweet crude exports. Situated advantageously just 50 miles off Florida's east coast, Grand Bahama offers undeveloped coastal land with deep water access, facilitating a swift permitting process and boasting a substantial local workforce. The Bahamian government has demonstrated robust support for the Project through favorable terms, concessions, and legal structures.
A pivotal aspect of the Project's success lies in its refinery design, which is characterized by low complexity, which shortens construction timelines, and eliminates the need for investment in less lucrative gasoline production units. This simplicity becomes increasingly advantageous given evolving industry dynamics, particularly in light of International Maritime Organization regulations mandating lower sulfur limits for bunker fuel. Moreover, the refinery's cost efficiency is bolstered by its world-scale capacity, integration of solar power for electricity and utilization of internally produced fuel gas and light products for furnace requirements.
Logistically, the Project benefits from the ability to use non-U.S. flag vessels, deep water access enabling efficient loading and unloading of ships of all sizes, and its proximity to key markets such as the U.S. Gulf Coast and East Coast, with minimal voyage times. This logistical advantage translates into competitive crude costs compared to U.S. Gulf Coast refiners while offering higher netback margins for ultra-low sulfur diesel and jet fuel delivered to the U.S. Atlantic Coast and Northwest European markets. Notably, the refinery's location surpasses other low-complexity refineries in terms of cost efficiency, positioning it as a lucrative addition to the global energy trade landscape, capable of supplying crucial fuel products and feedstocks to diverse markets worldwide.