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KINGSTON, Jamaica: The Jamaica government has named the Korean-based Samsung company as the preferred bidder for the development and operation of the Liquefied Natural Gas (LNG) infrastructure on the island.
Science, Technology, Energy and Mining Minister Phillip Paulwell, told Parliament that submissions had been received from three companies and assessed by the LNG Project Steering Committee, which recommended to Cabinet that Samsung be given the nod to develop and operate the project.
“The Committee will now commence negotiations with Samsung,” he told legislators of the plant which is expected to constructed at a cost of J$52 billion (One Jamaica dollar=US$0.011 cents) in St. Catherine. The authorities said that the 360 megawatt plant would reduce the country’s electricty bill by 30 per cent.
Paulwell said that the process to select an LNG supplier has been extended to Friday, July 27. He said that all three short-listed supply bidders had requested an extension of the original deadline of Tuesday, July 17, 2012.
Paulwell said that the Steering Committee will be critically assessing the overarching framework and project parameters before making a final decision in order to determine the way forward.
The LNG project was developed as a public-private partnership with the stated objectives being: to reduce Jamaica’s near total dependence on imported oil; to reduce the country’s exposure to the vagaries of the international oil markets; to lower energy costs, and to utilise a more environmentally friendly fuel option.
Two Requests for Proposals (RFP) were issued in June 2011 – one for the supply of approximately 830,000 tonnes per annum of LNG with the first delivery scheduled for late 2014 to coincide with the start up of the Jamaica Public Service Company’s (JPS) new gas-fired 360 MW power plant; and the second for the provision and operation of an LNG Floating Storage and Regasification Terminal.