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JAMAICA: A Market Ready for

Gas
Presentation to
ISO Containers 2013
Stephen Wedderburn
26 June 2013
Jamaica: Location
The Problem

“Customers in Caribbean countries


face some of the highest electricity
tariffs worldwide”
(Nexant Caribbean Regional Energy Study 2010)
The Cause
The Result

Source: Jamaica Public Service Company


The Result (Cont.)
• De-industrialization
• Loss of Manufacturing Jobs
• Persistent Trade Deficit
The Result (Cont.)
• De-industrialization
• Loss of Manufacturing Jobs
• Persistent Trade Deficit

Jamaica spends more to import


petroleum than it earns from all its
exports
Natural Gas: A Solution?

Source: Alan Townsend, World Bank


Jamaica Energy Mix Targets
Lots of Activity – No Gas so far
• 2003 – KBR Pre-Feasibility Study
• 2004 – Jamaica/Trinidad MOU
• 2006 – Mustang FEED
• 2007– Launch of FSRU Tender
• 2009 – Launch of 2nd FSRU Tender
• 2011 – Launch of 3rd FSRU Tender
• 2012 – Electric Utility Asked to Develop LNG
Solution
• 2013 – New Proposals Invited for Power Plant
and LNG Supply
Reasons for Failure
• Government Involvement/Bureaucracy
• Misplaced Price Expectations
• Efforts to Aggregate Customers
• Discomfort with Long Term Take or Pay
• Creditwothiness
• Expensive Infrastructure
• GAS SUPPLY!
Jamaican Energy Usage

• Bauxite/Alumina 30%
• Electricity Generation
23%
• Road & Rail 21%
• Shipping 14%
Potential Customers for Gas
Utility/IPPs

Bauxite/Alumina Refineries

Industrial: Cement, Brewery, Rum

Hotels

Ships
LNG ISO Container Considerations
• Large ContainerPort
• Regular Container
Vessel Calls to Kingston
and Montego Bay
– 7 days sailing from
Houston/New Orleans
– 3 days sailing from
Miami/Port Everglades
• Potential Customers –
wide range of demand
Takeaways
Gas Supply Is Still A
Huge Hurdle!

An ideal opportunity
exists for the US
Gas Industry to use
its entrepreneurial
creativity to tap a
new market
Thank You
Contact Details:

Stephen Wedderburn
Energy & Infrastructure Specialist
Kingston, Jamaica
Tel: +1 876 382-8118
Email:
Stephen.Wedderburn@gmail.com

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