Tuesday, July 31, 2012
Samsung C&T Corp of Korea secured for LNG Regasification Plant and Pipelines - Jamaican Contractors to benefit from National Project to Secure Jamaica's Energy Future
The news is in folks!
Jamaica has a guarantee of supply for LNG (Liquid Natural Gas) from Trinidad and Tobago as it would appear the talks as mentioned in the article “Jamaica, Trinidad LNG Talks Continue”, published Friday July 20, 2012 12:57 pm, The Jamaica Gleaner went well.
Now Jamaica has secured the services of a multinational Contractor Samsung C&T Corporation of Korea to procure the following services relating to the supply of LNG as described in Geezam blog article entitled “JPS Co to build Jamaica’s first Gas Turbine Power Plant in St. Catherine”:
1. Construct the Floating Storage and Regasification Terminals
2. Construction of the Gas Pipelines to retail LNG directly to large buyers in Jamaica
This as stated in Parliament by Science Technology Energy and Mining Minister Phillip Paulwell in the article “Samsung snags LNG project”, published Wednesday July 25, 2012, The Jamaica Gleaner.
Samsung C&T Corporation of Korea was one of three (3) bidders shortlisted by the LNG Committee then headed by Christopher Zacca:
1. Exmar Marine of Belgium
2. Samsung C&T Corporation of Korea
3. SenerIngenieria y Sisternas, SA of Spain
Remember, earlier in April 2012AD, Trinidad and Tobago’s state owned Refinery PETROTRIN had discovered an estimated 48 million barrels of crude Oilin 60m of shallow water in the Gulf of Paria four (4) miles west of Point Fortin as described in my blog article entitled “Trinidad and Tobago Discover new reserves of Oil in shallow water - God is indeed a Trini and Jamaica courts them for LNG again”.
In that same article I had also speculated that with this new discovery and other future discoveries coming on the horizon for Trinidad and Tobago, it now meant that Trinidad and Tobago could be a potential supplier for LNG. The GOJ seemed to think so.
Within April 2012AD the Science Technology Energy and Mining Minister Phillip Paulwell in conjunction with the Investment and Commerce Minister Anthony Hylton had hinted at the possibility of Trinidad being a supplier of LNG as stated in the article “Ja-T'dad LNG talks at 'ground zero'”, published Monday April 23, 2012, The Jamaica Gleaner.
Science Technology Energy and Mining Minister Phillip Paulwell within that same month of April 2012AD has also negotiated for a bigger stake in the LNG Project for the GOJ as pointed out in my article entitled “Phillip Paulwell wants as bigger stake in the LNG Plant - Mr. Vegas Bruk it Down as Jamaica Courts Trinidad and Tobago for LNG”.
This as the ownership of the Jamaica Public Service Company stands as thus:
1. 20% to JPS
2. 40% to Marubeni
3. 40% Korean Partner EWP (East West Power)
With only a 19% stake in the JPS Co (Jamaica Power Supply Company) 20% stake Jamaica sole Electricity Utility company, the GOJ are effectively holding on to a 4% stake in the soon-to-be-built LNG Plant in Old Harbour as stated in the article “Paulwell wants a bigger stake in 360MW plant”, published Wednesday April 25, 2012, The Jamaica Gleaner.
Hence the push to form the Jamaica Gas Trust Company and capitalize it with US$100 million of cash and US$100 million of credit from the Trusts potential customers and is to handle the day-to-day financial operations involved in supply of LNG to customers as well as the maintenance of Pipelines and the LNG Infrastructure as mentioned in the article “Government gives green light to Jamaica Gas Trust company”, published Friday, April 27, 2012 by CAMILO THAME Business co-ordinator, The Jamaica Observer
The Ministry of Energy and Mining is clearly seeking the Private Sector to provide this money as Private Equity Investors to secure the GOJ’s stake in the LNG project via the Jamaica Gas Trust as stated in the article “Jamaica seeking equity investors in LNG company” Published Wednesday May 2, 2012, The Jamaica Gleaner.
Thus the LNG Project is not just about supplying cheaper Energy to Jamaica, but may also turn out to be the biggest cash cow not only to Power Engineers my article entitled “Senator Phillip Paulwell chooses LNG over Coal - Power Engineers in Steven King's Graveyard Shift”.
It also appears to be a case of the Private Sector companies investing in their own Energy Security as well as getting their hands into the LNG Supply Game. This as potential large buyers of LNG include:
1. Bakeries such as Continental Baking Corporation and Honeybun
2. Farms and Manufacturing plants such as Jamaica Broilers Limited and CB Chicken,
3. PPP (Private Power Providers) such as JEP (Jamaica Energy Partners) owners of the Doctor Bird 1 and Doctor Bird 2 Power Barge
4. Alumina Plants such as JAMALCO in Halse Hall, Clarendon as pointed out in JEP (Jamaica energy Partners) and JAMALCO as opined in my blog article entitled “PM Portia Simpson Milller ALCOA Talks hint at LNG - Lady Gaga's Paparazzi in Jamaica's Bauxite Sector” .
If negotiations with Trinidad and Tobago by Science Technology Energy and Mining Minister Phillip Paulwell in partnership with the Investment and Commerce Minister Anthony Hyltonare successful, then JPSCo’s half of the US$616 million (J$53 billion) as stated in my Geezam blog article entitled “Phillip Paulwell wants Full Energy Sector Liberalization – JPS Co’s Dan Theoc holding on to his Hard End” needed to begin the construction of the LNG Plant in Old Harbour by 2015AD is secure.