Fri | Aug 18, 2017

JPS sees positive outcome from Softbank acquisition of Fortress Group

Published:Sunday | February 19, 2017 | 2:00 AMSteven Jackson
In this November 2016 photo, co-chairman of Fortress Wes Edens (left) poses with Prime Minister of Jamaica Andrew Holness and President & CEO of the Jamaica Public Service Company (JPSCo) Kelly Tomblin at the offcial commissioning of the JPS LNG plant at Bogue in Montego Bay.

Power utility boss Kelly Tomblin views Softbank's acquisition of Fortress Investment Group, to which New Fortress Energy is affiliated, as positive for furthering plans to build out gas facilities in Jamaica,

American company New Fortress Energy is a gas supply partner to Jamaica Public Service Company (JPS).

Last November, the partners celebrated the commissioning of Jamaica's first LNG-fired plant at Bogue in Montego Bay, and they are about to start development on another gas facility in St Catherine. In both cases, New Fortress invests separately in the gas-supply infrastructure, while JPS develops the power plant.

The marine terminal and gas power plant development at Old Harbour in St Catherine is to get off the ground "in a couple of weeks," said Tomlin, the president and CEO of JPS, on Friday.

JPS secured funding locally for its plant, while New Fortress planned to finance the project themselves with cash rather than debt, Tomlin, who noted that the acquisition by Softbank means "they will have a lot more cash".

New Fortress did not return Gleaner calls up to press.

Last Wednesday, the two parties jointly announced a US$3.3 billion deal for Softbank of Japan to acquire New York-based Fortress Investment Group. Fortress, which is co-chaired by Pete Briger and Wes Edens, said its senior executives would remain with the company.

EXCITED ABIUT DEAL

"I am in dialogue with Wes Eden," said Tomblin. "I am assured that this acquisition doesn't harm the project and that also he is excited about this deal; and so too the members on the ground who work for New Fortress," said Tomlin.

Asked about any other implication to Jamaica, she said there would be "absolutely none".

New Fortress plans to build and operate a liquefied natural gas marine terminal and pipeline within the Portland Bight area or close to the Goat Islands, according to the environmental report released last year.

The project will be executed through affiliate NFE South Holdings Limited. The marine terminal will feed gas to the 190MW plant that JPS will be developing at Old Harbour.

steven.jackson@gleanerjm.com