Energy Company, Jamaica Public Service (JPS), received formal approval from the Jamaican Government for its proposal to proceed with the construction of a 190MW plant to replace the company’s existing units at the Old Harbour power station, located on the southern coast of Jamaica.JPS is pursuing fuel diversification of its power generation fleet, in favour of lower cost Natural Gas. JPS stated that a “market study undertaken by JPS in 2014 indicated that Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGL’s) such as propane and ethane, are viable options for power generation and can realise significant reduction in the cost of electricity.”
The Project is to be located at the existing Old Harbour site and is nominally rated at 190 MW under site conditions (197 MW – new and clean). JPS will also seek to convert the existing Bogue combined cycle project in Western Jamaica to gas fuel. The main receiving terminal will be located at the Old Harbour project. “JPS has initially determined that an onshore terminal is cost effective, compared to the larger capacity and productivity of larger FSRU-type terminals. Construction should begin on the Old Harbour Terminal and Power Plant before the end of the year, and commercial operation is expected by the end of 2017” JPS said.
“An Independent Engineer has been retained for the Bogue conversion. JPS will present its recommendation to proceed with the project to the Jamaican Regulator, the Office of Utilities Regulation (OUR), at the end of February 2015. Pending regulatory approval for the costs of the gas conversion, the Bogue project is expected to enter construction in second quarter of 2015 and would begin use of gas fuel by first quarter of 2016,” the company stated.
JPS said it “has employed various market intelligence services, which suggest that LNG is expected to provide the most stable cost to the Jamaican economy. However, Natural Gas Liquids present a short term opportunity, particularly Ethane or LPG. JPS is considering floating storage, fixed tank or mobile tank systems as well as a combination of each storage option which could accept these different fuels or switch fuels cost effectively.”
Jamaica Public Service Company Limited (JPS) is an integrated electric utility company and the sole distributor of electricity in Jamaica. The Company is engaged in the generation, transmission and distribution of electricity, and also purchases power from a number of Independent Power Producers. JPS currently serves over 603,000 customers through a workforce of 1,700 employees. The Company owns and operates 4 power stations, 9 renewable plants, 43 substations and approximately 14,000 kilometres of transmission and distribution lines.