Dear Editor,
I recently came across an article in the other Jamaican publication entitled "Leave 'em out" where members of the Jamaica Energy Council (JEC) were advocating excluding the post-closure arriving proposal from Hong Kong-based Energy World Corporation (EWC) from consideration. Admittedly, the dissenting voices included Opposition spokesman on energy Gregory Mair and Jamaica Manufacturers' President Brian Pengelley, but the gravity of the matter dictates that we weigh this matter carefully.
I find it disturbing that folks are of such a strong view that we should just go with the cheapest solution, which the EWC appears to be. Does it not matter that EWC has not yet declared the size of the plant that they plan to build, nor its location?
I find it disturbing that folks are of such a strong view that we should just go with the cheapest solution, which the EWC appears to be. Does it not matter that EWC has not yet declared the size of the plant that they plan to build, nor its location?
Aside from the lack of principle involved, there is a deep underlying problem manifested here where folks believe a company that shows up at the ninth hour and says 'we can provide financing, plus we have gas fields', but the details, including project size and location will come later, should be parachuted to the front of the line based solely on pricing.
Truth is, EWC having even one oil field is irrelevant. We live in a capitalist, non-altruistic world and EWC will not forego $15/MMBtu for natural gas in Asia — their backyard — for $6/MMBtu in the Caribbean ($4/MMBtu in the US). Even after transportation and logistics costs, the arbitrage premium is immense, which is why the big guys are liquefying and transporting the vast majority of their production (LNG) to Asia. Heck, you get $10/MMBtu in Europe.
Bottom line is this -- there is no free lunch. That's the mindset that got us the pyramid-schemes in the first place. Let's sit up and objectively assess opportunities, then make fundamentally sound decisions. That's the only thing that's going to get this thing turned around and headed in the right direction.
By the way, Jamaica Public Service was the sole tender to the prior request for proposals. They are tripping financial metrics related to their current debts left, right and centre. They cannot afford to self-build or cost-effectively obtain financing for plant construction. If the CEO is telling us to go with someone else, it's for obvious reasons — the world is not altruistic!
Carl A Williams
Cheapest energy solution isn't necessarily best
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I recently came across an article in the other Jamaican publication entitled "Leave 'em out" where members of the Jamaica Energy Council (JEC) were advocating excluding the post-closure arriving proposal from Hong Kong-based Energy World Corporation (EWC) from consideration. Admittedly, the dissenting voices included Opposition spokesman on energy Gregory Mair and Jamaica Manufacturers' President Brian Pengelley, but the gravity of the matter dictates that we weigh this matter carefully.
I find it disturbing that folks are of such a strong view that we should just go with the cheapest solution, which the EWC appears to be. Does it not matter that EWC has not yet declared the size of the plant that they plan to build, nor its location?
I find it disturbing that folks are of such a strong view that we should just go with the cheapest solution, which the EWC appears to be. Does it not matter that EWC has not yet declared the size of the plant that they plan to build, nor its location?
Aside from the lack of principle involved, there is a deep underlying problem manifested here where folks believe a company that shows up at the ninth hour and says 'we can provide financing, plus we have gas fields', but the details, including project size and location will come later, should be parachuted to the front of the line based solely on pricing.
Truth is, EWC having even one oil field is irrelevant. We live in a capitalist, non-altruistic world and EWC will not forego $15/MMBtu for natural gas in Asia — their backyard — for $6/MMBtu in the Caribbean ($4/MMBtu in the US). Even after transportation and logistics costs, the arbitrage premium is immense, which is why the big guys are liquefying and transporting the vast majority of their production (LNG) to Asia. Heck, you get $10/MMBtu in Europe.
Bottom line is this -- there is no free lunch. That's the mindset that got us the pyramid-schemes in the first place. Let's sit up and objectively assess opportunities, then make fundamentally sound decisions. That's the only thing that's going to get this thing turned around and headed in the right direction.
By the way, Jamaica Public Service was the sole tender to the prior request for proposals. They are tripping financial metrics related to their current debts left, right and centre. They cannot afford to self-build or cost-effectively obtain financing for plant construction. If the CEO is telling us to go with someone else, it's for obvious reasons — the world is not altruistic!
Carl A Williams
Cheapest energy solution isn't necessarily best
-->