Nov 2016 Financial News

As T&T continues decline, Jamaica moves into LNG

Nov 15, 2016

As production of natural gas continues to decline and T&T continues to be affected by liquefied natural gas (LNG) output curtailments, Jamaica has opened its first natural gas plant and wants to position itself as a future LNG hub in the region.

Jamaican Prime Minister Andrew Holness, speaking at the recent opening of a US$175 million LNG terminal in Montego Bay, said introduction of LNG into the country’s energy mix could be a real game changer with the potential to rapidly improve Jamaica’s economic fortunes. He said Jamaica is strategically poised to become the LNG hub of the region.

“Energy is the most successful structural adjustment endeavour that the government has ever undertaken. Our economic programme, our fiscal programme and now specifically our economic growth programme, will be impacted positively as a result of these groundbreaking moves,” he said.

US company New Fortress Energy LLC invested US$175 to construct the LNG terminal at the Montego Bay port.

Holness his administration has no intention of letting up on the numerous opportunities now available and plans are well advanced for construction of another facility in Old Harbour.

Meanwhile, latest available data points to a continued decline in LNG production at this country’s sole liquefaction and export facility at Point Fortin. Atlantic LNG produced 1.93 million cubic meters as compared to 2.24 million cubic meters in April last year, according to data by from the Ministry of Energy. LNG sales and deliveries from Atlantic LNG’s facility came to 44.9 million MMBtu, a decline of 12 percent from last year, the data showed.

LNG production has been sinking for more than a year due to gas shortages and production averaged 3.4 Bcf/d in April, down six per cent from the corresponding period last year.

Earlier this year, Atlantic’s CEO Nigel Darlow warned that the plant is at record low levels of utilisation and is “failing to deliver on its LNG commitments”.

Source:
Trinidad Guardian
Tuesday November 15, 2016

http://www.guardian.co.tt/business/2016-11-14/jamaica-moves-lng