Gas price higher than EWI's
THE Jamaica Public Service Company (JPS) said yesterday that the cost of liquefied natural gas (LNG) to the grid would be higher than the US$0.1288 per kWh which Energy Minister Phillip Paulwell had set as the benchmark for the fuel.
John Kistle, senior vice-president of generation at JPS, told The Gleaner yesterday that "we are above that" in reference to the line which Paulwell said Energy World International (EWI) had put in the sand in the dumped 381MW project.
"Remember [US] 13 cents was quoted some years back when LNG was being delivered at US$8.50 to the nozzle tip. That is not the price of LNG today or tomorrow," Kistle said.
He further told The Gleaner that "even the EWI project, if it had gone forward, would have been more expensive".
The Energy Sector Enterprise Team, chaired by Dr Vin Lawrence, said the new baseload-generating plants, which include 190MW of gas-fired energy from the JPS, 140MW of coal-fired energy from Alpart and 50MW of ethane-powered fuel from Jamalco, will lead to a 30 per cent fall in electricity rates by 2018.
Kistle said with more renewable energy sources being added to the system and the new baseload plants to be brought on line, consumers will definitely benefit from lower energy prices.
"We estimate that just in fuel alone, it will be in excess of US$300 million savings per annum," Kistle said of the JPS's proposal to construct the 190MW plant.
Kistle said JPS had made the necessary applications to the National Environment and Planning Agency for an environmental permit to construct the plant.
He added: "We are negotiating the equipment. We are going to the EPC (engineering, procurement, construction) markets to begin getting quotes to build the facility, and we have engaged with numerous gas suppliers so that we can finalise a supply agreement for fuel to the project."
The 190MW plant is to be built by June 2017.