K&M advises lenders on LNG-to-Power project in Caribbean

K&M Advisors has informed in a press release it was retained by the prospective lenders to a 190 MW combined cycle gas plant in the Caribbean to perform financial model review services.

IPP Journal can now reveal that the mentioned project is to be developed by Jamaica’s utility firm, Jamaica Public Service Company (JPS). The 190 MW gas power project will be located in Old Harbour Bay, St Catherine, Jamaica. The project is expected to cost close to US$300 million.

According, JPS chief executive Kelly Tomblin said the project is about to reach financial close and an EPC contract with Power China will be finalised within the next two weeks. JPS had selected Abengoa for the EPC contract but it changed the decision when the Spanish firm filed for bankruptcy protection in its home country.

General Electric will provide with technology for the plant, according to sources. 

The plant will use gas supplied through a long-term Gas Supply Agreement (GSA) and produced by regasifying Liquefied Natural Gas (LNG) using a Floating Storage and Regasification Unit (FSRU).

JPS will develop the plant while American company New Fortress Energy is financing and developing the gas infrastructure to supply the plant with LNG. The gas infrastructure project is expected to cost around US$200 million.

K&M said in the press release:

K&M will ensure reasonableness of the assumptions on technical input variables contained in the financial model, consistency of the financial model with the contractual obligations detailed in the project agreements, propose alternative assumptions to make the financial model consistent with project agreements, and recommend sensitivities for key variables.