Monday, June 13, 2016

US Company to Spend More Than $200m to Construct LNG Terminal in Jamaica

Locator Map of Jamaica

American company, New Fortress Energy LLC, will invest more than $200 million to construct a Liquefied Natural Gas (LNG) terminal in Jamaica.

The facility is expected to generate more than 200,000 metric tonnes of LNG annually, which will initially be supplied to the domestic market.

There are also plans to expand output for delivery to other Caribbean countries, thereby positioning Jamaica as a regional hub for the supply of LNG.

New Fortress was selected from a list of six entities which submitted bids to supply LNG to power the national energy grid, primarily through the Jamaica Public Service (JPS) Old Harbour 190-megawatt gas fired power plant.

Chairman of the Electricity Sector Enterprise Team (ESET) Dr Vincent Lawrence noted that New Fortress was chosen as the developer of Jamaica’s LNG project, as the entity was the most competitive for JPS’ requirements.

“New Fortress was not only the lowest evaluated price for the volumes required by JPS, it clearly demonstrated its commitment and capability to supply gas as scheduled by the detailed engineering studies they had undertaken,” he said.

Lawrence said the terminal, which is to be built, owned and operated by New Fortress, is expected to be completed for commissioning by 2017/2018.

In the meantime, the ESET Chairman further informed that Cabinet, at its meeting on Monday, endorsed the selection of New Fortress for the supply of LNG and the installation of facilities to receive, store and re-gasify the fuel for use at the new Old Harbour plant.

New Fortress Energy supplies energy, logistical services, and financing to end-users seeking to convert their operating assets from diesel or heavy fuel oil to natural gas fuel use, in order to reduce operating costs, increase equipment availability, and enhance their environmental stewardship.

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