Paulwell says energy prices will be lower if all customers of sole LNG provider contribute to the cost of the infrastructure - Jamaica Observer

Source: Jamaica Observer

KINGSTON, Jamaica -- Shadow Minister for Energy, Phillip Paulwell, wants to know whether all customers of New Fortress Energy, the lone provider of Liquefied Natural Gas (LNG) in Jamaica, contribute to the cost of the infrastructure.

Paulwell, who served as energy minister in a previous People's National Party (PNP) Government and spearheaded the introduction of LNG to Jamaica, said if all of New Fortress' customers contributed to the infrastructure it would go a far way in lowering energy costs in Jamaica.

"We do know that all of JPSCo (Jamaica Public Service Company) customers have to absorb in their bills the cost of the establishment of the LNG facilities. It is only fair and reasonable that other off-takers do so as well. This could lead to a lowering of the price of electricity," said Paulwell.

He was speaking recently in the House of Representatives as he made his contribution to the 2024/25 Sectoral Debate.

Paulwell said the introduction of LNG was a major achievement in Jamaica's energy diversification objective.

"Just about 60 per cent of electricity is now generated using natural gas. We have not seen, however, the achievement of lower prices through the use of LNG," Paulwell lamented.

"I will say for the eighth consecutive year that it was never intended by the PNP administration to introduce LNG with a sole provider. Our intention was to promulgate regulations to enable transparent and clear rules that would encourage competition in the provision of this fuel to Jamaica," he added.

The former energy minister noted that the regulations were drafted in 2015.

"Where are they nine years later? Again, I call for these regulations to be tabled forthwith and for them to apply not only to the generation of electricity but also to their use in transportation and other areas. This is a clear path towards the lowering of energy costs in Jamaica," he said.