New Fortress Energy to Spend More Than $200 Million to Construct LNG Terminal

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, provided details of the arrangement during a Jamaica House media briefing at the Office of the Prime Minister, on Wednesday, November 11.

He 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.

Dr. 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 (November 9), 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.

Dr. Lawrence said ESET, Tuesday, November 10, wrote to JPS authorising their negotiation of an Old Harbour Gas Supply agreement with Fortress.

Quoting an email ESET received from New Fortress this morning, Dr. Lawrence said the company was “honoured to play an integral role during this historic year in the Jamaican energy sector.”

“Integration of natural gas-powered generation is a model for countries around the world to seize control of their energy and environmental future. It will lead to stable, lower long-term power prices and the bridge to incorporating additional renewable power in the future. The work Jamaica has done this year, has created an immediate future where Jamaica’s energy sector will be unaffected by the daily price movements in the oil markets,” the email read.

Earlier this year, New Fortress also signed an agreement with JPS to supply LNG for its 120-megawatt power plant at Bogue, in St. James. The plant is being converted to run on gas, instead of Automotive Diesel Oil (ADO).

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.