Government's LNG dreams near reality

Garfield Myers

Friday, March 19, 2010

MANDEVILLE, Manchester -- Energy and Mining Minister James Robertson says that within four weeks, Government will "turn another corner" in the drive to replace heavy fossil fuels with liquefied natural gas (LNG) as the main generating source for electricity in an effort to lower electricity and productivity costs for Jamaica.

Robsertson made the disclosure Wednesday after breaking ground for a US$49.9-million, 18MW expansion at the Wigton Windfarm in South Manchester.

Chairman of Wigton, William Saunders, said the new facility, which is scheduled for delivery later this year, will provide about 53 million kilowatt hours annually, "equivalent to saving about 32,400 barrels of oil or 2.3 million US dollars at current costs".

It will also serve to avoid "46,000 tonnes of carbon dioxide emissions", Saunders said.

Robertson did not elaborate on his "turn another corner" comment, but a source later suggested that he was referring to "the arrival at an important juncture in the tendering process" for LNG. Robertson also said that "owners/engineers", whom he seemed to suggest were connected to suppliers of LNG technology, were in the island and would be meeting with "bauxite alumina companies and with (electricity suppliers) JPS later this week".

LNG, which is routinely described as the cleanest of the fossil fuels, and alternate non-fossil energy sources such as wind are being advocated as important elements of the energy mix as Jamaica seeks to move away from crude oil/petroleum-based imports which cost US$2.7 billion in 2008.

High energy costs, twinned with a fallout in the global metals market as the economic recession took hold over the last two years, have been blamed for the slashing by more than half of Jamaica's bauxite/alumina industry.

The island's largest alumina refinery, Alpart, at Nain in St Elizabeth, as well as WINDALCO plants in Manchester and St Catherine -- all owned by the Russian aluminium giant UC Rusal -- have ceased mining and processing operations.

Robertson reminded his audience Wednesday that cheaper energy was vital for the revival of the bauxite/alumina industry, which at its height netted the economy in the region of US$500 million and provided thousands of relatively high-paying jobs.

"It was energy cost, not the recession that shut down bauxite," said Robertson.

The minister also announced that the Government was set on divesting itself of the Wigton wind farm, whose phase two expansion, described as Wigton Two, is being funded by the Venezuela-sourced PetroCaribe fund.

"The Cabinet, the prime minister has already signalled that we will be divesting, selling, privatising this endeavour," the minister told an audience that included the top brass of the state-owned Petroleum Corporation of Jamaica (PCJ) of which Wigton is a subsidiary.

Wigton wind farm -- comprising 23 wind 900 kW turbines totalling 20.7 MW -- located at Wigton, Rose Hill, high in the hills of windswept south Manchester -- was commissioned by the PCJ in 2004 at a total investment of US$26 million. Investors included the Dutch Government, which provided $US6.7 million.

According to Saunders, the wind farm has so far generated more than 306 million kilowatt hours of electricity, saving 210,000 tonnes of carbon dioxide emissions and 180,000 barrels of oil. He valued fuel savings thus far at US$11 million.

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COMMENTS (3)

norris Richards
3/20/2010

Good news, if the plant becomes a reality, it will be good for the country, cheaper energy for industries, which will transilate into jobs, increase tax for government and the country will gain.

it industries can be more efficeint

T G
3/19/2010

This LNG thing is not going to work.
Trust me!

Marcus James
3/19/2010

Its nice to see the Wigton Windfarm Project finally moving into phase two after years of promise by the government. This is good for the overall country energy policy and the economy on a whole. Also Mr Robertson said they have turned another corner in the tendering process for LNG to be introduce in Jamaica is good news. 70% of the world heat generator, mainly in first world countries are now using LNG to generator that heat. The US is fastly overtaking Russia as the world largest producer of LNG from shale field which put us in a great geograghic position to access this resource. The International Energy Association (IEA) 2009 report said the US produced 600 bn cubic meter of the gas from shale field across the country. It is a cheaper cleaner energy source which again is good for our energy policy and economy development. I hope the government will be able to turn another critical corner by implementing this technology.

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Government's LNG dreams near reality