Business

Samsung to build LNG terminal

BY CAMILO THAME Business co-ordinator thamec@jamaicaobserver.com

Wednesday, July 25, 2012    

Print this page Email A Friend!


SAMSUNG C&T has won the bid to build the liquefied natural gas (LNG) floating storage and regasification terminal in Jamaica.

Out of a field of three, it beat bids made by Exmar Marine of Belgium and Sener Ingeniería y Sisternas, SA of Spain.

The construction and trading affiliate of the Korean company best known for its electronics was declared the preferred bidder by Cabinet, according to Energy Minister Phillip Paulwell.

However, the process of selecting a supplier of the fuel was extended by a further two weeks ending this Friday, when the three shortlisted are expected to make bids, he told Parliament yesterday.

The Government had previously planned to issue the final stage request for proposal (RFP) for LNG Supply in mid-May, with firm bids due by end of June 2012.

Also, the Jamaica LNG Project had received six submissions with indicative pricing during the first stage of the RFP for LNG supply in November 2011.

Marubeni Corporation, which has a 40 per cent stake in JPS, is among the six bidders to apply for the supply of LNG. Also up for consideration are Shell International Trading Middle East Ltd, Pace Global, Morgan Stanley and Spanish firms Gas Natural Aprovisionamientos, SDG, SA and Repsol Comercializadora de Gas, SA.

It is not clear which of the three were shortlisted.

The LNG project aims to lower energy costs through fuel diversification. The Jamaica Public Service Company (JPS) has committed to construct 360 megawatt (MW) of additional generating capacity, which will run on natural gas.

The utility company says that it expects that it can lower the cost of electricity by up to 30 per cent.

The project also expects to issue the RFP for the natural gas pipeline network next month after the completion of a Front End Engineering Design Study by WorleyParsons, the projects technical advisors.

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Poll

Should the next Police Commissioner be recruited from overseas?
Yes
No


View Results »


ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT