THE spike in oil prices sparked by the conflict in the Middle East is not expected to affect the price of liquefied natural gas (LNG) in Jamaica based on contracts now in place with the island’s prime supplier Excelerate Energy.

The World Bank Group has projected that oil prices will this year hit their highest level since Russia’s invasion of Ukraine in 2022, as the war in the Middle East sends severe shocks through global commodity markets.

According to the World Bank Group, overall commodity prices are forecast to rise 16 per cent in 2026, driven by soaring energy and fertiliser prices and record-high prices for several key metals.

Jamaica has not been spared, with prices at the gas pumps now some 20 per cent higher that when the conflict started on February 28.

But in an exclusive interview with the Jamaica Observer, president and chief executive officer of Excelerate Energy Steven Kobos said local entities have seen stability in the price of LNG and this will remain.

According to Kobos, the price volatility in oil is a reminder that LNG is affordable when entities contract for it right away.

“Our business model is to be operationally as flawless as possible, have the highest possible reliability, and then we simply believe in doing what we say we will do. We have contracted prices for LNG for our customers and that’s what we have been delivering at,” said Kobos.

“We haven’t tried to take their LNG and run with it to another market. We have been doing what we say we will do. So, frankly, the price that people are paying right now is no higher because of the war,” added Kobos.

He pointed out that entities which go out in the spot market now to buy LNG would pay more because markets that are feeling the need with the absence of all those Persian Gulf volumes are driving the price up, but that is not impacting the price here in Jamaica.

“We have contracts, we are honouring those contracts, and the price of those contracts is not impacted by this [war in the Middle East],” said Kobos.

He noted that while the Title Transfer Facility (TTF) — the primary benchmark index for wholesale natural gas prices in Europe — is skyrocketing, based on the war, that will not happen in Jamaica.

Kobos said while what is happening in the Middle East is important globally, Excelerate remains committed to its goal of providing energy security to countries, just as it is trying to provide energy security for Jamaica.

He said fears that Excelerate could divert LNG earmarked for Jamaica to another country, where it could be sold at a higher price, are unfounded.

We will not… because — and you may find this hard to believe — but as a company we like to be boring, and we like to be reliable. Some people say boring is the new sexy, because that’s who we are,” said Kobos who pointed out that he has already told the Jamaican Government that Excelerate is a reliable partner and has challenged people to speak with governments in the countries in which it has operated for years who will confirm this.

Kobos pointed out that Excelerate was quick on the ground in Jamaica after Hurricane Melissa hit last October, working quietly to provide relief and support as although it is an American company, which operates all over the world, it sees itself as a Jamaican firm.

“We want to support the markets we are in when they face extraordinary circumstances, that’s how you prove yourself. We believe strongly that you are judged by your deeds, not by your words, and it was obvious that we wanted to act and be judged by our actions, not by our words.

“We were fortunate we had other assets that happened to be in the Caribbean and we were able to immediately load up relief supplies in Panama on the
Excelerate Shenandoah, covered its decks and sailed it into Kingston with relief supplies. All told, we mobilised more than US$1.3 million of funding and relief supplies and we had it in the country very quickly,” said Kobos.

He added that Excelerate considers itself part of the Jamaican community with a responsibility to provide support in times of need.