- Jamaica Energy Partners (JEP) Group plans to invest more than $150 million to convert two of its thermal power plants to LNG.
- The LNG project is in the planning and due diligence stage, with commercial operations targeted within 24 months, subject to regulatory approvals.
Jamaica Energy Partners (JEP) Group plans to invest more than $150 million to convert two of its thermal power plants to liquefied natural gas (LNG) and rebuild its hurricane-damaged Paradise solar facility in Westmoreland, as it seeks to lower electricity costs and strengthen Jamaica’s energy resilience.
The InterEnergy Group subsidiary, which supplies about one-third of Jamaica’s electricity, said the investments are a direct response to weaknesses exposed by Hurricane Melissa last October. These include Jamaica’s dependence on a single floating gas import terminal and the vulnerability of renewable energy assets to extreme weather.
JEP chief executive Wayne McKenzie said the country’s entire LNG supply currently depends on one Floating Storage and Regasification Unit (FSRU) moored at Old Harbour Bay in St Catherine. Under maritime safety rules, the vessel must disconnect and leave ahead of major storms, cutting off gas supplies for days or weeks.
“Before the hurricane, there’s no gas, during the hurricane, there’s no gas, and after the hurricane, there’s also no gas,” McKenzie said, describing a cycle that forces LNG-dependent plants onto costly diesel backup and pushes up system-wide fuel costs.
That disruption was a key factor behind a 7 per cent electricity tariff increase in December, with further adjustments possible as recovery costs are finalised. McKenzie noted, however, that prices should moderate as damaged parts of the grid are restored and costs are spread across more customers.
To address the underlying problem, JEP plans to develop an onshore LNG storage terminal costing an estimated $80 million to $110 million. The facility would support the conversion of the 124-megawatt Doctor Bird plant in St Catherine and the 66-megawatt West Kingston Power Partners plant, at a combined cost of about $50 million.
A third JEP plant, the 60-megawatt Jamaica Private Power Company facility, is too old to convert but has recently undergone upgrades and secured a five-year contract extension.
Once converted, the plants will primarily run on gas while retaining heavy fuel oil and diesel as backup. The LNG project is in the planning and due diligence stage, with commercial operations targeted within 24 months, subject to regulatory approvals. McKenzie said JEP is working with a strategic partner that would co-own the storage facility.
In parallel, JEP is rebuilding its 37-megawatt Paradise solar park, which suffered about 80 per cent damage during Hurricane Melissa. The $20 million to $30 million project will deliver a stronger, Category 5–resilient facility, with construction expected to start within nine months.
McKenzie said the strategy aligns with InterEnergy’s regional push to use gas as a transition fuel while hardening infrastructure, helping protect jobs, reducing costs, and improving energy security in hurricane-prone Jamaica.