JPS Archives - Page 6 of 43 - SolarBuzz Jamaica

Paulwell Says Fuel Tax Will Impact Consumers Negatively

May 13, 2016 Webmaster

Former Energy Minister Phillip Paulwell says consumers who have been benefiting from reduced electricity rates from the Jamaica Public Service (JPS) over the last 12 months could see a hike in the cost of energy with the Government’s imposition of new taxes on heavy fuel oil and liquefied natural gas.

The JPS recently concluded work to convert its Bogue Power Plant in Montego Bay, St James, to dual-fuel capability.

United States-based New Fortress Energy is expected to bring liquefied natural gas into the island by August, at which point the newly converted Bogue power plant will begin to use the more environmentally friendly fuel.

Paulwell’s concerns came as he spoke with journalists yesterday at the end of Shaw’s opening contribution to the Budget Debate.

“Currently, the JPS does not pay taxes on heavy fuel oil. Government has now imposed a tax both on liquefied natural gas, which will arrive in August of this year, and on heavy fuel oil, so it means a significant increase in the price of electricity that has been trending down by almost 50 per cent over the last year.”

At the same time, Opposition Leader Portia Simpson Miller is taking the Government to task for “breaking its promise” by imposing new taxes to fund the tax-relief plan.

“All I can say is that they have broken their promise to the Jamaican people – no new tax – but, from all indication of what Minister Shaw said today (yesterday), it is the poor that will suffer,” she said.

Central Manchester MP Peter Bunting argued that the increased taxes would affect everyone, but have a more significant effect on those who earn under $600,000 per annum, and who will have to face increased transport and electricity costs.

He described the tax measures as regressive, noting that persons at the bottom of the society are being burdened to give relief to those earning at a higher level.

Biodiesel Crude Oil Electricity Energy Saving JPS LNG News Oil

Bogue Power Plant ready to use natural gas

May 11, 2016 Webmaster

The Jamaica Public Service Company Ltd (JPS) has officially concluded work to convert the Bogue Power Plant in Montego Bay, St James, to dual fuel capability.

The plant is now able to use natural gas, as well as automotive diesel fuel, which it has been using since its commissioning in 2004. The work, which started in January of this year, was completed on April 26, on time and within budget, at a cost of US$22.7 million or J$2.7 billion.

The arrival of liquefied natural gas, which is being undertaken by US-based New Fortress Energy, is expected by August of this year, at which point the newly converted Bogue Power Plant will begin to use the more environmentally- friendly fuel. The multimillion-dollar project will add significantly to the country’s energy diversity, fuel security, flexible generation, and production of clean energy.

Senior Vice-President of Generation Joseph Williams notes: “This is just the first phase of a deepening fuel diversification process which is taking place at JPS. We are excited to be a leader of this revolutionary move, which will not only see a more diverse energy landscape, but also possibilities for the commercial and transportation sectors of our country.”

The Bogue Combined Cycle Power Plant produces 120MW of the country’s average daily use of over 600MW of electricity.

The Observer

Crude Oil Electricity JPS LNG News

Bogue Plant Conversion To Wrap Up Next Week

May 6, 2016 Webmaster

The JPS power station at Bogue, Montego Bay.

The Jamaica Public Service Company (JPS) said it expects to complete the conversion and upgrade of the Bogue combined-cycle power plant in Montego Bay, St James, within a week.

The US$22-million ($2.5-billion) project kicked off in January and, when completed, it will be able to operate on either liquefied natural gas (LNG) or its current fuel source, automotive diesel oil.

JPS said it will be buying natural gas under a long-term supply agreement from Fortress New Energy and expect to start receiving the product within the next four to six months.

JPS indicated that Bogue would be ready by the end of the second week in May in an email to the Financial Gleaner.

The company said New Fortress “is responsible for all activities associated with delivering the LNG to the port in Montego Bay, storing the LNG in tanks, regasifying the LNG and delivering it by pipeline to our power plant at Bogue”.

The project to convert the Bogue power plant, which is being undertaken by General Electric, kicked off on January 11 this year.

The work involves removal of a gas turbine and heat recovery steam generator from service, which was expected to clear the way for General Electric to start installing equipment.

JPS said the project would add significantly to the country’s energy diversity, fuel security, flexible generation and production of clean energy.

New Fortress Energy began developing its terminal and pipeline at the Montego Freeport at the end of last year, but JPS has no stake in that project.

mcpherse.thompson@gleanerjm.com

The Gleaner

Crude Oil JPS Oil

JPPC Squeezes More Electricity Out Of Fuel, But Losses Worsen

April 27, 2016 Webmaster

Jamaica Private Power Company (JPPC) saw its loss position double in 2015.

Its parent, Kenon Holdings, reported US$2 million ($234 million) net loss for last year compared with US$1 million the year before.

The private power producer, which sells electricity to all-island distributor, Jamaica Public Service Company (JPS), managed to increase its revenue by four per cent from year-earlier levels to US$45 million in 2015.

This was mainly due to the company increasing its electricity generation from 425 gigawatt hours, or 10 per cent of total national grid’s needs, to 445 GWh, of which well over 90 per cent was sold, likely because it has one of the most efficient fossil fuel, or thermal plants in Jamaica.

JPS’ system uses a dispatch application that determines the best combination of operating levels for each plant supplying the grid to ensure that energy is provided at the lowest total cost to the consumer.

Last year, JPPC improved the efficiency at its 60 megawatt plant, lowering the heat rate from 8,306 Btu/kWh in 2014 to 7,989 Btu/kWh in 2015.

In other words, it increased the amount of the energy stored in the heavy fuel oil (HFO) that was converted into electricity from 41 per cent to 43 per cent. That is, it used two percentage points more of the HFO’s energy to make electricity.

This helped the Rockfort, Kingston-based power producer lower its average fuel cost from US$137 per MWh to US$69 per MWh, albeit a dramatic fall in oil prices contributed more to this improvement. Average sales price, therefore, fell from US$182 per MWh (or J$20 a kWh) in 2014 to US$101 per MWh (or J$12 a kWh).

Indeed, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) improved from US$1 million to US$2 million, but this would not have been enough to cover staff cost, debt servicing and depreciation.

JPPC is the smallest of the power producers that use fossil fuel-based plants. Jamaica Energy Partners and its sister company West Kingston Power Plant, combined, generates about 30 per cent of Jamaica’s electricity requirements. JPS produces over 50 per cent.

Some six per cent of the country’s electrical energy is derived from hydro and wind, with another three to four percentage points expected to come from 78MW of wind and solar scheduled for commissioning by next year.

Electricity Government JPS News

Blackout – Widespread Outage Leaves Thousands In The Dark

April 18, 2016 Webmaster

Winsome Callum

Up to late last night, the Jamaica Public Service Company (JPS) was yet to determine what caused a “fairly widespread” power outage that left tens of thousands in darkness.

Reports of the outage began to emerge shortly after seven o’clock from Manchester, Hanover, St Mary, Kingston, St Andrew, Portland, St Catherine, Trelawny, St James, Clarendon, and Westmoreland.

The JPS issued a statement almost an hour later, from its Twitter account, advising that “the problem seems to be fairly widespread as customers in several parishes have been affected”.

It added: “We are not able at this point to say what caused the problem or how soon we’ll have everybody back on, but power has already been restored to some areas.”

Winsome Callum, director, corporate communications at JPS, later explained that “a number of generating units went offline simultaneously, resulting in a fairly widespread outage affecting customers in several parishes.

“We are not able at this point to say what caused the units to go offline or how soon we’ll have everyone back,” she added.

Callum explained that the restoration “could take a while because of the pretty involved process of ramping up units before energising the lines”.

Meanwhile, Energy Minister Dr Andrew Wheatley said he had been in contact with the Kelly Tomblin, president and chief executive of JPS, about the situation.

“I’m sure that I will be getting a report on the matter,” Wheatley told The Gleaner.

Last month, the light and power company advised that customers could experience outages between April and May as the company moves to convert its operations at the Bogue power station in St James to natural gas.

The Gleaner

Alternative Energy Crude Oil Electricity Energy Saving JPS LNG News

Delay as American LNG now sees 2017 start-up of export project

April 13, 2016 Webmaster

The JPS power plant in Old Harbour

In an update last week on the US Department of Energy’s (DOE) website American LNG— associate company of New Fortress Energy – said there were likely to be delays at its planned US$250-million onshore LNG export facility at Titusville, Florida. Operations will likely begin in 2017, not in April 2016 as projected before.

American LNG is controlled by Fortress Equity Partners, which is also the parent of New Fortress Energy.

New Fortress Energy won out of a field of eight bidders to provide a long-term natural gas solution for JPS power plants, starting with Bogue in Montego Bay.

In March this year, New Fortress also secured the contract to supply gas to the planned Jamaica Public Service Company (JPSco) Ltd 190MW power plant in Old Harbour, St Catherine.

American LNG, on March 7 committed to supply New Energy with up to 2.26 Bcf/year (billion cubic feet per year).

Overall, American LNG received approval in 2015 to export up to 600,000 mt/year of LNG (approximately 30.2 Bcf/year regasified) in ISO containers to countries with which the US has free-trade agreements.

Now it said that developments at its Titusville facility indicated a likely commercial operation date in 2017 instead of April 2016.

Efforts by the Jamaica Observer to find out from New Fortress how this would affect plans for Bogue were not answered up to press time.

New Fortress last year signed the supply accord with JPSCo to provide LNG for the power company’s 120-MW Bogue power plant at Montego Bay. To this has been added Old Harbour.

The 190MW gas-fired plant is intended to replace 292 megawatts of Heavy Fuel Oil Power Plants in Old Harbour and Hunts Bay which are being phased out.

American LNG told the Department of Energy that it is now producing LNG from its Hialeah facility near Miami from which the first export of LNG occurred February 5.

Natural gas for the facility is supplied by Peninsula Energy Services Co to an affiliate of American LNG.

The project has approval to export LNG in ISO containers to non-free trade agreement nations.

In March, LNG World news online reported that American LNG made the first export from the facility on February 5, 2016.

The Jamaica Observer

Electricity Government JPS News

GOJ committed to selling stake in JPSCo — DBJ

April 7, 2016 Webmaster

JPS on Knutsford Boulevard in New Kingston

The Development Bank of Jamaica (DBJ) has advised that the Government of Jamaica (GOJ) is committed to selling its stake in the Jamaica Public Service Company Ltd (JPSCo), the island’s sole power distributor. However, timelines for the divestment project and method of sale are not yet determined.

JPSCo, which has assets of near US$1 billion and saw revenues of US $759.82 million in 2015, is owned 19.9 per cent by the GOJ.

Other shareholders are MaruEnergy JPSCO 1 SRL and EWP (Barbados) 1 SRL, each holding 40 per cent interest, and private individuals with 0.1 per cent.

The DBJ, which is home to the government’s divestment unit, said Friday that the GOJ had taken a policy decision to “divest itself of these types of commercial assets once the opportunities arise.

“The government has recognised that in order to build efficient and competitive markets, these types of privatisation initiatives should be undertaken.”

The DBJ said the divestment of the 20 per cent shareholding in the Jamaica Public Service “is intended to broaden the ownership base of assets in the country”.

It did not indicate the method of divestment to be undertaken.

The principal activities of the JPSCo are generating, transmitting, distributing and supplying electricity in accordance with the All-Island Electric Licence issued in 2011.

The Jamaica Observer asked JPSCo, via the company’s communication unit, if other shareholders had the right of first refusal, and if they were considering bidding in a future divestment.

The company declined to answer, stating, “As it happens, we cannot comment on such matters as they would be the subject of confidential discussions as well as the confidential agreements between the parties. Should the Government of Jamaica be divesting their shares, it is likely that the appropriate disclosures will be made in due course.”

JPS also declined to comment on the for sale value of the asset.

Shareholder MaruEnergy JPSCO 1 SRL is incorporated in Barbados and is ultimately owned by Marubeni Corporation, which is incorporated in Japan.

The other partner, EWP (Barbados) 1 SRL, is incorporated in Barbados and is ultimately owned by the Korea Electric Power Corporation, which is incorporated in South Korea.

The GOJ’s ownership in the JPSCo is held collectively through the Accountant General’s Department and the DBJ.

In relation to the schedule for divestment, the DBJ indicated that the Ministry of Finance and the Public Service (MOFP) “has been seeking an appropriate time for divestment of these shares in keeping with its policy. The steps to be taken will depend on the particular method chosen to dispose of the asset.”

JPSCo had total assets of US$933.74 million as at December 31, 2015.

Year-end revenues were US $ 759.82 million versus US$1.023 billion in 2014. Nevertheless, net income for the 12 months of 2015 came out 15 per cent per cent ahead of the prior year.

The company saw profit of US$26.51 million in 2015 versus US$23 million in 2014. Earnings per share were US$ 0.12 in the last year compared to US $0.11 in 2014.

BY AVIA COLLINDER Business reporter collindera@jamaicaobserver.com

The Jamaica Observer

Electricity Government JPS News

Portia wants JPS to give discount to seniors

April 5, 2016 Webmaster

SIMPSON MILLER… I am not making the appeal for senior citizens in South West St Andrew alone

MEMBER of Parliament for South West St Andrew Portia Simpson Miller last Thursday pleaded with the Jamaica Public Service Company (JPS) to implement a discounted energy plan for senior citizens.

Simpson Miller, who presented the main address at a JPS Career Expo held at Caribbean Palms community centre, said that she understood the plight of senior citizens, especially those who no longer earn an income, people who get by no little or no savings, are handicapped by varying and expensive medical complaints, and even those who are dependent on their struggling children and caregivers who try to ensure the comfort of their elders.

“I am aware that every year the company incurs millions of dollars in losses, but I have recognised that our senior citizens are struggling to produce the funds to make the necessary payments on their electricity bills monthly,” Simpson Miller said.

“I am going to beg the JPS to see how they can work out a reasonable rate for our senior citizens. I am not making the appeal for senior citizens in South West St Andrew alone, but for every senior citizen across the country. A number of them have to depend on their children, many of whom are already financially burdened, to survive,” Simpson Miller added.Simpson Miller, leader of the Opposition People’s National Party, said that she was aware that there are a number of things that JPS will have to follow but she hoped they would be able to render some assistance to the vulnerable senior citizens group.

“I hope [too] that you (JPS) could consider how you could work into your plans a way that you could help an old man already struggling to buy food and medication or that crippled man or woman that you are able to give a [special] rate so that these senior citizens, their children or those people who assist them with their bills would not have it so hard finding the funds,” Simpson Miller said.

Jamaica Observer

Electricity JPS LNG News Oil

JPS Gets Green Light To Build 190MW Plant

March 29, 2016 Webmaster

The oil-fired JPS power plant in Old Harbour Bay, St Catherine is to be replaced with a gas-fired plant.

Jamaica Public Service Company (JPS) says the National Environment and Planning Agency (NEPA) has approved the construction of the 190-megawatt gas-fired power plant at Old Harbour Bay, St Catherine.

The Office of Utilities Regulation and the Electricity Sector Enterprise Team have also given formal approval of the power purchase agreement for the new facility, the power utility said.

JPS President and CEO Kelly Tomblin said the utility was now finalising details of the project with equipment supplier General Electric Corp, and engineering procurement and construction company Power China. The latter company has been contracted to build the plant.

The arrangements for the project are to be finalised within the next two weeks.

JPS’ disclosure of the project approval follows its weekend announcement, via a posting on its website, that it had finalised an agreement with New Fortress Energy to supply the Old Harbour plant with natural gas.

“We are now at an advanced stage in relation to closing the financing of the project, which we expect to be completed by the end of April,” said the JPS chief executive.

New Fortress is also the utility’s gas supply partner for the power plant at Bogue in Montego Bay.

The Old Harbour plant will be a brand new facility. Once built, JPS plans to dismantle the current oil-fired plant at Old Harbour and return the site to brownfield status.

“We anticipate that this new power plant will be generating electricity at below 13 US cents per kWh when it comes on line, which is remarkable, given the necessity to build new infrastructure and bear the transportation and other logistic costs,” Kelly said.

The timelines for the project were laid out during last November’s public consultations on the environmental impact assessment report.

JPS said yesterday that there are no changes to the timeline for site preparation for the liquefied natural gas plant, which is scheduled to begin in the first quarter of 2016, giving the utility just days to hit that deadline.

Construction will begin by the second quarter and the plant’s commissioning is expected by July 2018.

JPS entered into a memorandum of understanding in December 2015 with a Chinese company, now identified as Power China to build the 190, megawatt plant.

The Chinese company replaced the Spanish engineering and renewable energy firm Abengoa, which filed for bankruptcy protection just days after striking a deal with JPS.

The Jamaican utility reaffirmed on Wednesday that the 190MW project is expected to cost around US$300 million.

The gas component, which includes development of a terminal and pipelines to the JPS plant, is a separate project to be undertaken by New Fortress. The arrangement is similar to that agreed for the Bogue plant.

JPS also already had dealings with General Electric, which is converting the diesel-fired Bogue plant to a combined cycle operation to burn either diesel or LNG.

The conversion is costing JPS US$22.74 million or about $2.7 billion, and is scheduled to wrap up by midyear.

Gleaner

Biodiesel Crude Oil Electricity Government JPS LNG News Oil

New Fortress Secures LNG Ship For Jamaica Project

March 4, 2016 Webmaster

The JPS power station at Bogue, Montego Bay, which is being converted to run on LNG.

New Fortress Energy, the company seeking to supply liquefied natural gas (LNG) to Jamaica, has secured a two-year contract for an LNG vessel and is to start shipping gas this month.

Golar LNG Limited, a Bermuda-registered company which operates the vessel Golar Artic, revealed the contract details to its investors.

“Golar has now concluded a two-year charter agreement with New Fortress Energy Transport Partners LLC (NFE) for the employment of Golar Arctic in Jamaica,” said Golar its statements obtained by the Financial Gleaner.

New Fortress has an agreement with Jamaica Public Service Company (JPS) to supply gas to its 120MW power plant at Bogue in Montego Bay, a contract New Fortress will service via gas infrastructure under development at the Montego Bay port. JPS has been mum on the price at which the gas will be supplied to Bogue.

The American company is also expected to develop gas infrastructure and supply JPS’ Old Harbour plant with LNG once it is built, but those negotiations continue.

Bogue is currently being converted to run on gas as well as diesel oil, the fuel on which it was originally commissioned in 2003. General Electric is doing the retrofitting under a US$22.74-million contract from JPS. Bogue will become a combined-cycle plant, capable of switching between gas and diesel.

New Fortress Energy assumes the costs for delivering gas to the burner tip. JPS has no stake in the gas infrastructure project.

New Fortress’ ambition Golar said the deal it has with New Fortress solves a long-standing problem regarding the cost of regasification, and that it fits with New Fortress’ ambition to become a regional supplier of LNG to Caribbean countries.

“Jamaica has long sought to replace liquid fuels with LNG, however, the size of the market has always made it difficult to justify the cost of a conventional floating storage and regasification unit,” said the fuel shipping company.

“New Fortress have now solved this challenge by utilising ship-to-ship transfer of LNG from Golar Arctic on to smaller LNG carriers to service a number of locations within the country of Jamaica.”

Golar Arctic is scheduled to load the first LNG cargo in support of this new business “during March 2016”. Golar and New Fortress believe this new approach to delivering LNG to niche markets has wide application within the Caribbean and other similar markets around the world, stated Golar.

“New Fortress have, with their entrepreneurial approach to business development, shown that downstream LNG markets can be developed within a much shorter time frame than is customary. Similar fast-track solutions will be essential if consumers are to benefit from the large incremental volumes of LNG that will be delivered to market over the next three-four years,” stated Golar.

The Financial Gleaner sought a project update from both JPS and New Fortress, but none came up to press time.

Golar LNG this week reported a fourth-quarter adjusted operating loss of US$35.9 million.

The Gleaner

1 … 4 5 6 7 8 … 43