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JPS, Jamaica’s dominant power producer, has announced the arrival of a first shipment of LNG for the 120 MW Bogue power plant in Montego Bay. New Fortress Energy delivered the cargo via the ‘Golar Arctic’ carrier to the port of Kingston.
Kelly Tomblin, JPS chief executive called the start of gas imports a historic milestone for Jamaica. “The country has been trying to achieve fuel diversity for a long time, and 2016 represents the year that it has really happened, with the introduction of gas, grid-scale solar, and the addition of significant wind capacity to the grid,” he said, suggesting “Natural gas will play a key role in transforming the energy sector, while supporting industrial development and economic growth.”
Expanding LNG supply for power gen
New Fortress Energy and JPS signed the LNG supply deal in mid-2015 and earlier this year the JPS finalised the completion of its Bogue power plant to run on natural gas, as well as automotive diesel oil (ADO). Works to convert the power plant were undertaken at a cost of J$2.7 billion ($22.74 million).
This deal is now being expanded to include additional gas supply to Jamaica for JPS’ new 190 MW gas power plant at Old Harbour Bay, St. Catherine. New Fortress Energy has agreed to privately finance and develop the infrastructure necessary to deliver LNG to this new plant project, which replaces an ageing oil-fired plant.
In a separate development, Alpart will build a 140 MW gas cogeneration facility at Nain, St Elizabeth.
US LNG headed from Miami to Jamaica
New Fortress Energy, sponsored by Fortress Investment Group, is investing over $200 million to build a regasification terminal in Jamaica, mostly for importing LNG from the United States. The firm’s affiliate American LNG has filed for approval to export up to 3.02 Bcf/year of natural gas from its small Hialeah facility near Miami.
The JPS head stated that New Fortress Energy would now be finalising construction of the Montego Bay regasification terminal, which is claimed to be “on track for mechanical completion this month.” Once the terminal is complete, both parties will start the commissioning process.
Jamaica Public Service Company (JPS), an integrated utility, is sole distributor of electricity on the island, catering for a peak demand of just under 660 MW. JPS is owned by Marubeni, Korea East West Power, the Government of Jamaica, and a small group of minority shareholders.
