Jamaica Energy Partners looks to LNG to reduce costs

 

Chief Executive Officer of Jamaica Energy Partners, Dr. Wayne McKenzie, says it will be spending over $150 million in order to convert two of its thermal power plants into liquefied natural gas (LNG) in order to reduce the cost of energy. 

 

The investment by the company, which provides one-third of the country's power, will be targeting one of the main vulnerabilities exposed by Hurricane Melissa - the island's dependence on one single-floating LNG storage and regasification unit, a specialised vessel which is located offshore in Old Harbour. This vessel has to be disconnected every time there is a hurricane, resulting in the country losing the use of cheaper fuel until the hurricane passes, leading to higher electricity bills.

 

Dr. McKenzie pointed out that this led to the initial 7% spike in JPS electricity bills recently, with more increases expected down the road. 

 

This is why, he said, the company will be constructing a land-based LNG facility at a cost of between US$80 million to US$110 million. 

 

This facility would enable the conversion of two of the Jamaica Energy Partners' three thermal power plants - the 124 megawatt Doctor Bird plant in St. Catherine and the 66 megawatt plant in West Kingston. 

 

He, however, says the third plant, the 60 megawatt Jamaica Private Power Company, cannot be converted because of its age and technology, although its operating contract was extended by five years and the plant was upgraded.