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Smell Of Death Hits LNG Idea

September 10, 2012 Webmaster

Paulwell

Gary Spaulding, Senior Gleaner Writer

There are clear indications that the long-proposed introduction of liquefied natural gas (LNG) into Jamaica’s energy mix could be abandoned.

It now seems certain that with the current price of LNG, the Government will not achieve the expected 30 to 40 per cent reduction in the cost of electricity to the Jamaican consumer, and that could lead to the death of the project which was first put on the table more than 10 years ago.

Last month, the head of the LNG Steering Committee, Dr Carlton Davis, told a

Government JPS News Oil

Will JPS Save The LNG Project?

September 10, 2012 jrobinson

President and CEO of JPS, Kelly A. Tomblin.-Rudolph Brown/Photographer

The much maligned and criticised Jamaica Public Service Company (JPS) could be the one to save the Government‘s floundering liquefied natural gas (LNG) project, which will bring cheaper electricity to Jamaicans.

Having stuck to the letter of the law and prevented the parent company of the JPS, Marubeni Corporation, from bidding to supply LNG to Jamaica, the Government now seems ready to eat humble pie and beg the firm for help.

Marubeni had wanted to submit a bid to supply the LNG to Jamaica but was disqualified after it arrived minutes after the 5 p.m. deadline.

However, with the qualified bidders offering prices that would not lead to any appreciable decline in the cost of electricity to Jamaicans, it appears negotiations are set to be initiated with Marubeni.

“The prices quoted by the bidders are much higher than Jamaica can pay and would not attract the JPS or the bauxite companies,” a source close to the talks told

Government LNG News

Samsung Team To Visit Jamaica For LNG Talks

September 10, 2012 jrobinson

A team from South Korean company Samsung is to visit the island this week to hold talks with the government on its LNG project.

Samsung has emerged as the preferred bidder for the development and operation of the LNG floating storage and re-gasification terminal.

It is understood that Samsung has written to the Energy Minister Phillip Paulwell asking for a meeting with him and all the parties involved.

Paulwell has admitted that after three months, a formal deal is yet to be struck with Samsung.

He stressed that the negotiation is a process and the government is proceeding with caution.

The government had projected to introduce LNG by 2014 but there are doubts that this timeline may be achieved because the administration is yet to secure a supplier of the LNG.

There are also fears that the current cost of the fuel may prohibit the government from realising its aim of reducing the cost of electricity by 30 per cent.

Paulwell said he is awaiting the final report from the LNG steering committee, which is due this month.

He added that after reviewing the report, the government will indicate its position going forward.

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