The Senator James Robertson, Minister of Energy and Mining in the Government of Jamaica has stated in Parliament that Government of Jamaica soon plans to liberalize the Energy Sector, paving the way for Third Party Power Utility Companies to come to Jamaica to not only produce Electrical Power but to also have a license to distribute, as currently under the Power and Utilities Act, JPS Co (Jamaica Power Service Company) is the only Power Utility Company that can legally produce and distribute Electrical Power.
Other Power Utility Companies operating in Jamaica can only produce Electrical Power and resell it to JPS Co (Jamaica Power Service Company) but they cannot distribute it e.g. JEP (Jamaica Energy Partners) in Old Harbour, which has two (2) floating Power Barges, Doctor Bird 1 and Doctor Bird 2 as well as JEPP (Jamaica Energy Power Partners). It should thus be assumed that this liberalization would also include not only power generation but also the Bio-fuels Sector and the Alternative Energy Sector, which is worth billions.
It is very likely, with the current Recession, that there will be an accelerated push for the full Liberalization of the Energy Sector, possibly via negotiations as was the case with the Liberalization of the Telecom Sector in 1997 by the then Senator Phillip Paulwell, Minister of Information and Telecommunications as the Government of Jamaica seeks to sell off its stake in Public Sector Companies that are loss making e.g. Air Jamaica, Jamaica Railway Corporation, JPS Co (Jamaica Power Service Company), etc.
Thus, based on these current economic conditions, any such Power Utility Company would have to demonstrate the following to be allowed to get a Power Utility Company License to produce and distribute Electrical Power in Jamaica:
1. Power must only generated using Renewable Energy and not increase the Government of Jamaica’s Oil Bill
2. It must be a source of Taxable Revenue
3. It must be signatory to a Bilateral Trade Agreement similar to those signed by other FDI (Foreign Direct Investor)
4. It would have to not only produce its own power from Renewable Energy sources but would also have to aid Jamaica in producing Bio-fuels for the Domestic and Export Market e.g. LNG (Liquid Natural Gas), E80, Bio-Diesel
5. It would have the option to go into Telecoms and become a Telecoms Provider
6. The Government of Jamaica would have to have a controlling stake in the Power Utility Company, with decision-making capabilities with regards to the Power Utility Company long term
7. It would introduce Smart Grid Technology that would allow for the transparent billing of Commercial or Residential Customers and Subscribers and auditing by Third Party and Government of Jamaica Auditors
8. It would create significant employment in the Energy Sector both for students from local Universities but also for local contracting companies.
9. It would have to demonstrate financially viability, cost effectiveness and technically feasibility
10. It would have to demonstrate that it has little environmental impact and does not contribute to environmental pollution
11. It could guarantee power supplies to all Jamaicans at rates competitive to that of JPS Co (Jamaica Power Service Company) without Government of Jamaica subsidies.
As the Electrical Power has to be produced by Renewable Energy Sources, the lists of such Renewable Resources available to the Power Utility Company are as follows:
1. Wind (Land Based and Offshore)
2. Solar (Photovoltaic and Solar Steam)
3. Hydroelectric (Natural and Artificial Reservoir)
4. LNG (Liquid Natural Gas)
5. Hydrogen Gas (Sequestered from Sea Water)
6. Hydrogen Fuel Cells
One of the major sources of Electrical Energy for the Power Utility Company will be LNG (Liquid Natural Gas). According to the article “LNG for Jamaica a national priority – Manning”, published Friday June 26, 2009, by Linda Hutchinson-Jafar, Business Writer, The Friday Gleaner.
Prime Minister of Republic of Trinidad and Tobago, Patrick Manning, has stated that LNG (Liquid Natural Gas) for Jamaica is a “national priority” with Republic of Trinidad and Tobago supplying Jamaica with LNG (Liquid Natural Gas) to Jamalco so as to lower the cost of the production of alumina, which would then be shipped to the Alutrint Facility in Republic of Trinidad and Tobago to be smelted and converted to Aluminum.
According to another article “No Trinidad LNG for Jamaica anytime soon”, published Friday December 15, 2006, by Linda Hutchinson-Jafar, Business Writer, The Friday Gleaner, Republic of Trinidad and Tobago had drilled a Test Well at a cost of US$80 million and had found no oil or LNG (Liquid Natural Gas), hence they decided they were unable to supply Jamaica with LNG (Liquid Natural Gas) due to unavailability of supply
The fact that there is now a supply of LNG (Liquid Natural Gas) coming to Jamaica, possibly by 2010 - 2011, with a possibility of more due to increased competition from LNG (Liquid Natural Gas) suppliers in China, the Middle East and Far East countries.
According to the article “Rivalry sends Trinidad in search of new LNG markets”, published Saturday, July 4, 2009, by Linda Hutchinson-Jafar, Business Writer, The Saturday Gleaner, , the market for LNG (Liquid Natural Gas) has since changed for Republic of Trinidad and Tobago LNG (Liquid Natural Gas) since 2006, as stated by Robert Riley, Chairman and CEO (Chief Executive Officer) of BP Republic of Trinidad and Tobago.
Currently there is no central body or cartel that controls the price of LNG (Liquid Natural Gas) worldwide, much in the same way that OPEC (Organization of Petroleum Exporting Countries) controls the price of oil worldwide. These producers, for who LNG (Liquid Natural Gas) is merely a by-product as they produce more valuable chemicals such as methanol and ammonia, can flood the LNG (Liquid Natural Gas) Market with large and cheaper volumes of LNG (Liquid Natural Gas).
The United States of America is Republic of Trinidad and Tobago’s largest buyer of LNG (Liquid Natural Gas) and thus the possibility exists that these cheaper suppliers of LNG (Liquid Natural Gas) can effectively compete with Republic of Trinidad and Tobago for supply to the United States of America.
The US of A is presently the largest current and future user of LNG (Liquid Natural Gas), as the United States of America, under an initiative spearheaded by President George W. Bush, is looking to Renewable Energy as a means of reducing the United States of America’s dependence on Foreign Oil.
As such, LNG (Liquid Natural Gas) is part of the Renewable Energy for the United States of America for its Domestic Supply of Fuels along with Biodiesel and E80 to be used for Electrical Power Generation and Motor Vehicle Fuels respectively.
I am hoping that the Republic of Trinidad and Tobago has into account the current Recession worldwide and the fact that Republic of Trinidad and Tobago has decided to supply us with at least one (1) train of LNG (Liquid Natural Gas).
This with the possibility of getting additional three (3) trains of LNG (Liquid Natural Gas) from Republic of Trinidad and Tobago by 2011-2012 as the market for LNG (Liquid Natural Gas) from Republic of Trinidad and Tobago begins to contract due to the availability of cheaper LNG (Liquid Natural Gas) from LNG (Liquid Natural Gas) suppliers in China, the Middle East and Far East countries.
As such, for Republic of Trinidad and Tobago’s survival in an Unregulated LNG (Liquid Natural Gas) Market, it is most likely the Republic of Trinidad and Tobago would consider the option of selling the additional three (3) trains of LNG (Liquid Natural Gas) to us, considering the fact that Republic of Trinidad and Tobago cannot and will not be able to find any market for it.
It will be too expensive in the future as their current markets Chile and Brazil who will be courted by LNG (Liquid Natural Gas) suppliers in China, the Middle East and Far East countries, suppliers, who, because of economy-of-scale can effectively compete with Republic of Trinidad and Tobago in terms of Pricing and Volume of Supply.
It would thus be in the Government of Jamaica’s and the Government of Republic of Trinidad and Tobago’s best interest with respect to fixing the Trade Deficit that exists between the two (2) countries as well as Republic of Trinidad and Tobago’s Trade Deficit with CARICOM to display a strong interest in the recovery of the entire CARICOM Trading Bloc by selling the additional three (3) trains of LNG (Liquid Natural Gas) as suggested above to Jamaica and CARICOM with the following benefits:
1. Electrical Power Generation
2. Public Transportation (Jamaica Urban Transport Association, Jamaica Railway Corporation
3. Private Passenger and Carrier Vehicles modified with flexfuel engines to use LNG (Liquid Natural Gas), E80, Biodiesel, etc.
Specifically the use of LNG could not only result in a cheaper bus service, by virtue of lower fuel costs and cleaner burning fuel which is good for your engine, but would also reduce the cost of transportation, as LPG, the vehicle portable version of LNG costs almost JA$50 per liter.
Such a supply of cheaper fuel could also see the economically feasible revival of the train services here in Jamaica and even small aircraft for flights between the various aerodromes in Jamaica could be revived by just the simple conversion of the engines to burn LPG, as offered by the company Challenger Transport company Ltd (926-6414).
Challenger Transport company Ltd (926-6414) is a company more known for the rental of buses and trucks which has decided to launch the installation and servicing of such units in Jamaica which is already common in Dominican Republic.
They have apparently undergone two (2) years of extensive training of its technicians to be ISO9001 certified to not only offer the installation but the sole maintenance of the units based on the presentation made on “Smile Jamaica Morning Time” broadcast 8:15am March 16th 2010 on TVJ, a member of the RJR Communications Group.
Other companies that do this type of conversion are sure to follow and lead the way in a clean energy revolution that not only will save the environment but also save the Government of Jamaica billions on the cost of imported oil and drive the cost of energy to more business-friendly levels and thus be a driver of growth in our economy.
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