Red Stripe wants in­cen­tives for con­vert­ing to LNG

Jamaica Gleaner - - NEWS -

LO­CAL BEER man­u­fac­tur­ing com­pany, Red Stripe, is ap­peal­ing to the Govern­ment to pro­vide in­cen­tives to com­pa­nies mod­ernising their plants, in the process en­sur­ing a cleaner en­vi­ron­ment.

Head of Com­mu­ni­ca­tion at Red Stripe, Dianne Ash­ton-Smith, made the call against the back­ground of the US$400-mil­lion (J$5.2 bil­lion) in­vest­ment made by the com­pany to up­grade its plant to use liq­ue­fied nat­u­ral gas (LNG). That move is ex­pected to re­sult in sig­nif­i­cant sav­ings for the man­u­fac­turer. It also makes Red Stripe the first fully pri­vate com­pany in Ja­maica to go the LNG route.

The Ja­maica Public Ser­vice (JPS), which re­ceived its first ship­ment of LNG from United States-based New Fortress En­ergy in Au­gust 2016, is 20 per cent owned by the Ja­maican Govern­ment.

Ash­ton-Smith was speak­ing last Thurs­day at the first ever nat­u­ral gas con­fer­ence at The Ja­maica Pe­ga­sus ho­tel in New Kingston.

She ar­gued that it was time for the Govern­ment to con­sider some form of pro­tec­tion of the in­dus­try against in­creases in the spe­cial con­sump­tion tax to make it more ap­peal­ing for other com­pa­nies to con­vert to LNG.

Ash­ton-Smith said such a move would en­cour­age more com­pa­nies to go that route. An added boost would be for the Govern­ment to con­sider plac­ing in­cen­tives on du­ties to im­port all equip­ment and ac­ces­sories that use LNG, said Ash­ton-Smith.

And she is im­plor­ing the Govern­ment to con­sider a tax credit on the en­vi­ron­men­tal pro­tec­tion levy and in­come tax, since con­vert­ing to LNG is a “green ini­tia­tive”.


The Red Stripe Ja­maica brew­ery at Span­ish Town Road, Kingston. ASH­TON-SMITH

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