New Fortress Energy (NFE ) might suspend liquefied natural gas (LNG) supplies to the Jamaica Public Service’s (JPS) combined cycle plant in Montego Bay for a five-month period as the company pursues upgrades at the port managed by The Port Authority of Jamaica (PAJ).

The JPS, earlier in October, indicated that it was projecting switching to 100 per cent diesel at the combined cycle plant in an upcoming period because of a discontinuation in supplies from New Fortress Limited, due to changes being made by PAJ.

However, the PAJ has outlined to the Jamaica Observer that changes which are now in play were discussed with the New Fortress from the start of the company’s lease of port facilities from 2016, and that any dislocation is not attributable to it.

The PAJ said NFE have recently indicated the move of a new hose tower from Berth 2 to Berth 1 at the Montego Bay port in St James, which will take place between November 2021 to March 31, 2022. This, the PAJ explained, is the likely cause of a discontinuation in LNG transport to Bogue.

The PAJ clarified, “The Port Authority of Jamaica (PAJ) has not moved to end the arrangement under which New Fortress Energy has used certain areas in Freeport, Montego Bay. By way of New Fortress Energy (NFE) approached the PAJ in 2016 with a request to lease a block of land, that was previously reserved by the PAJ for the extension of the existing Berth 2 as well as for the construction of a new Berth 1 at the Montego Freeport Terminal.”

NFE indicated that it desired to use the land to construct a storage and regassification facility for LNG to be imported into the island as the fuel for the Bogue Power Plant in St James.

The PAJ explained, “The specific area which NFE sought to lease is the green area to the east of the label ‘Berth 1’. Given the national importance of the project, as signalled by the Government of Jamaica (GOJ), to bring liquefied natural gas (LNG) to the country, the PAJ agreed to lease the area to NFE.”

It was asserted, “NFE was aware since the commencement of discussions about the lease of the land in 2016 of the PAJ’s intention to construct the new Berth 1, designated for handling fuels, containerised and bulk cargo, and to extend Berth 2 to better facilitate the new larger cruise vessels that are expected to visit Montego Bay beginning in 2022.”

The lease was finalised between NFE and the PAJ in 2016 and the storage and regassification facility was erected at the site by NFE in 2017/2018.

Meanwhile, the PAJ has invested approximately US$18 million to date in the construction of Berth 1 and extension of Berth 2. The authority said the project will be completed once NFE has relocated the hose tower.

This will allow PAJ to install the pipelines to be used for the handling of the other fuels imported into the Montego Freeport Terminal and to complete the pavement of the area to allow for the movement of terminal handling equipment for containerised and bulk cargo.

“The development brings the berthing installations in line with international safety regulations,” it was noted.

The expanded berthing will also facilitate mega-cruise lines which will start coming to Jamaica in 2022.

The PAJ asserted that it had “several meetings and exchange of correspondences with NFE about the movement of the hose tower. PAJ was expecting that NFE would have relocated the hose tower during the general downturn in activity at the port, occasioned by COVID-19, and prior to the resumption of normal activities on the port. In anticipation of the scheduled restart of cruise operations and homeporting activities at the Montego Freeport Terminal, it is important that the work be completed as soon as possible”.

The PAJ added, “The relocation of NFE’s hose tower from its temporary location at Berth 2 to its new permanent position at Berth 1 is mutually beneficial as it increases the port’s berthing capacity and which should result in much less disruptions to the berthing of NFE’s vessels at the Port of Montego Bay, especially during the intensified cruise shopping operations, which at times may result in congestion.”

The PAJ said that when NFE completes its project, is anticipated that, on arrival, NFE’s vessels will no longer have to await the departure of cruise vessels, which previously had priority to berth amidst the limited berth capacity, before they are allowed to dock.

The relocation of the hose tower to Berth 1 facilitates both cruise and NFE’s LNG vessels to be simultaneously accommodated alongside at the berth without breach of any international safety and security regulations.

It is expected that NFE will continue to house the LNG storage and regassification facility at the lands which have been leased. The vessels which transport the LNG to the facility will now be berthed at Berth 1 once the hose tower is moved from Berth 2, where it was temporarily located, to its permanent location at Berth 1.

The JPS says it expects the movement to have little impact on its operation in Bogue or on customers electricity bills. The company said “the plant is a dual fuel facility, so we do not anticipate any disruption in our operations with the switch to ADO. And based on our arrangement with NFE, we do not expect that our customers will be negatively affected.”

We also contacted NFE for a comment but none was forthcoming up to press time.