Jamaica Public Service Company (JPS) and Fueling Tech Incorporated (FTI) International Group-led consortium inked a development agreement to bring compressed natural gas to the Bogue power station in St. James at a lower price.
Virtual Solutions of UAE and Red Rock Power Partners of the US are the other members of the consortium.
In order to receive the gas by December 2015, conversion works will take place at the plant.
Jamaican Minister of Industry, Investment and Commerce Anthony Hylton said the consortium will finance and conduct a front-end engineering design (FEED) study, to determine the final design of the compressed natural gas delivery infrastructure, besides the price of the gas delivered to JPS turbines, under the development agreement.
"The cost of the feed study will be borne by the consortium, and JPS has the option to walk away from the agreement if the price of the gas delivered is greater than 10 per cent of the originally proposed price," Hylton added.
According to Hylton, the Jamaica Public Service’s operating costs will be reduced with the supply of compressed natural gas to the Bogue power facility, and fuel savings would be achieved by 15%-30% yearly.
"As such, JPS cost savings could be in the magnitude of US$40,000,000.00 annually," Hylton added.