Susan Gordon, Staff Reporter
Brian Doy, manager, public affairs, communications and government relations at Jamalco
AFTER Tuesday's statement from the Government that Jamaica will in fact receive liquid natural gas from Trinidad beginning in 2009, Jamalco has stated that it is about to tackle the second phase of its billion dollar expansion plan.
Three years ago Alcoa announced that it would expand its Jamalco alumina refinery at Halse Hall, Clarendon, from 1.25 million metric tonnes per annum to 2.65 tonnes. The project was slated to be completed by year 2007.
However, the expansion project was contingent on a deal to supply energy in the form of liquefied natural gas (LNG) from Trinidad at an attractive price.
Jamalco has just managed to progress as far as the first stage of its expansion plan. This is expected to be completed by the end of this year.
Phase one is expected to add 150,000 metric tonnes of production per annum. This phase saw the upgrading of the equipment on the refinery at a cost of US$77 million.
Speaking with public affairs and communications officer for Jamalco, Brian Doy, the Financial Gleaner understands that the company does not now have a completion date for the overall project originally scheduled to end in 2007.
The second phase of the project was awaiting the agreement recently announced and according to Mr. Doy, discussions will continue with the Government about the natural gas programme as well as selling excess power to the public.
"It's good news, we are pleased that the agreement has been made," said Mr. Doy. "We are continuing our designing and engineering work for phase two of the project," he added.
"The original time frame was by the end of year 2007, that has slipped now," he said. "I don't know that ," he continued referring to the new completion date.
The total cost of the expansion plan is US$1.2 billion, Mr. Doy said. Phase two will involve adding a third train or unit to Jamalco's two unit plant. This new unit should add an additional 1.35 million metric tonnes, and almost satisfy the company's original plan to provide a 1.4 million metric tonne increase in production.
Part of the US$1.2 billion will also be used to construct a gas powered power station for the plant since Jamalco will have to increase its energy supply as well. The LNG it expects to receive will aid in generating electricity. The station will be used to create steam in the refinery process and the company is hoping to sell the excess power to the public.
The natural gas agreement announced, has excluded the price that Jamaica will pay for the product. The price Jamaica pays Trinidad for LNG could also affect the price it is being sold to Jamalco. When asked by the Financial Gleaner for an estimated price that would make the project viable, Mr. Doy said that for commercial reasons he could not comment on the matter.
Minister of Industry Commerce and Technology with Energy, Philip Paulwell, told the Financial Gleaner no price has yet been finalised between the two countries.
