Where will we get LNG to run the 381mW power plant and how long will that take ?

EWI had indicated it had its own LNG supply in Asia and would have been able to supply LNG to the Jamaican plant on a long-term basis.

With EWI now out of the picture ( are they ?) and with Asian LNG being more expensive than out of North American and with no supply from Trinidad, I must ask, from where will we get our long-term supply of LNG?

I would want to posit that any LNG into Jamaica, is most likely to come from the USA, which has seen a boom in the production of natural, but how easy is that process?

Well Phillip Paulwell and the PNP Government as well as their cheer leaders would want us to believe that the power plant be built and become operational by 2016. I have been told by some bloggers that I am a pessimist and all I want is for the Government to fail, which is why I keep writing so much on the LNG/ Power Generation project.

I have challenged the Minister and others in terms of the completion of the power plant given how much time we have lost thus far and how much time remains between now and 2016. I will present below further evidence which has led me to believe that getting this power plant on stream by 2016 is nothing but a pipe dream designed to create the illusion that we are in control of the situation.

As I said above, its most likely that our LNG will be sourced out of the USA and if I am correct in this assumption, then you the public ought to be informed about the process of getting LNG from the USA to countries like Jamaica.

Jamaica is considered a Non FTA country in the eyes if the USA, which means we do not have a Free Trade Agreement with that country.

Export of Natural Gas from the United States of America is tightly controlled and each entity which seeks to export the commodity MUST apply for permission to export either to a FTA or Non FTA country.

These applications are approved by the  Federal Energy Regulatory Commision (FERC) and the Department of Energy DOE .

How long does this process take?

Well , listed below is a link to list of applicants for license to export LNG and when the actual application to export was approved by the Department of energy.

http://energy.gov/sites/prod/files/2014/04/f15/Summary%20of%20LNG%20Export%20Applications.pdf

Let’s use a number of examples.

  1. Click on the link above which will open up a PDF file on the DOE website
  2. click here on  (10-111-LNG) once the document is opened ( Non FTA application doc number)
  3. Scroll down the document and you should see something like this , (click on link below) blhttp://www.fossil.energy.gov/programs/gasregulation/authorizations/Orders_Issued_2010/Sabine10_111dkt.html
  4. Look at the date of the application for permission to export 09/07/10 ( mm/dd/yr)
  5. Scroll down further and look at the approval date 08/07/12
  6. Time between application and approval is 2 yrs.

So let’s assume that was because the plant was still under construction so let’s choose another applicant.

Lets look at  Freeport LNG

  1.  Click on docket number 10-161-LNG
  2. Scroll down and see application date for export 12/17/10
  3. Scroll down further and see approval date for export (# 35)  05/17/13
  4. This one took 2.5 yrs from the request was made to actually obtaining “conditional” approval for export.

I am not saying its going to take us that long to get LNG here, no, that is not what I am saying, however if those who have already been approved to sell to non FTA countries have been booked and meet their quotas as stipulated on their export order, we would have to go searching for new players.

That is where the problem comes in as we can see it can take a very long time for the DOE to approve export of LNG from the USA for a new entrant into the market.

For our sake I do hope, we will not have to wait this long.

(Lake Charles Exports, LLC  license to sell to FTA countries from this applicant took a mere 2 months)

 

Bless.

 

 

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