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OUR monitoring potential impact of JPS delay in using LNG

Published:Wednesday | May 18, 2016 | 5:44 PM
The JPS plant in Bogue, St James

The Office of Utilities Regulation (OUR) has sought to assure that it will be vigilant in ensuring that the delay in the delivery of Liquefied Natural Gas (LNG) to the Bogue Power plant does not result in an increase in the price of electricity to them.

The Jamaica Public Service Company Limited (JPS) recently announced that the completion of the gas supply facilities, being implemented by US-based New Fortress Energy, is expected in August.

The Gas Supply Agreement signed by JPS and New Fortress Energy on August 5, 2015, stipulated that gas delivery would commence April 2016.

IN PHOTO: OUR director general Albert Gordon

Already the JPS has completed the conversion of the power plant in Montego Bay, St James, to take use natural gas and automotive diesel oil.

While welcoming the completion of the 120 MW combined cycle plant, the OUR has pointed to the four-month delay in the delivery of the overall project.

"Safeguards for customers were included in the agreement with New Fortress to ensure that any delay on its part would not result in negative cost implications for customers,” said Director General of the OUR, Albert Gordon.

"The OUR has been monitoring the project closely and will continue to keep the public abreast of its progress", he added.