The company’s application to renew its environmental permit for the site was recently denied by the National Environment and Planning Agency (NEPA) due to a missing lease agreement, raising a minor roadblock for the facility’s ongoing operations.
This application, submitted in late 2023, was FESCO’s first request for a permit renewal since acquiring the LPG facility from Wilson Beck LPG Limited in April of the same year. The Bernard Lodge plant, originally launched by Wilson Beck in 2020, plays a crucial role in FESCO’s entry into the competitive Jamaican LPG market, where Massy Gas, which operates the well-known Gas Pro and IGL brands, holds the majority share.
The Bernard Lodge site is situated on land owned by the Sugar Company of Jamaica, with a lease agreement in place. However, NEPA cited the absence of official proof of the lease arrangement in its decision. FESCO is currently working to provide the necessary documentation to satisfy NEPA’s requirements and resume normal operations. Managing Director Jeremy Barnes confirmed that the issue is in the process of being resolved.
“It’s just a matter of providing the correct paperwork. NEPA had all documents on file, but there appears to have been an oversight with the lease agreement,” Barnes shared. Despite this temporary setback, FESCO remains focused on its larger goals within the LPG sector and anticipates no long-term impact on its business plans.
FESCO’s acquisition of Wilson Beck’s assets earlier this year signaled the company’s official entry into Jamaica’s LPG industry. The Bernard Lodge facility has since been repurposed as the main hub for FesGas, FESCO’s proprietary cooking gas brand. Since the acquisition, the company has rapidly grown its presence in the market, delivering over $590 million in sales from LPG products in its first year, representing a significant milestone for the expanding energy provider.
Barnes also pointed out that while FESCO’s core business remains petroleum, the venture into the LPG market has exceeded expectations, with impressive growth recorded shortly after the company launched its operations. “The transition into LPG was strategic, and we’ve seen encouraging results sooner than expected,” Barnes said in a previous statement.
In addition to Bernard Lodge, FESCO has been investing heavily in its LPG infrastructure across the island. During the previous financial year, the company allocated $1.4 billion toward the development of new filling stations in key locations, including Discovery Bay and Stony Hill. For the current year, capital expenditure has been scaled back to $270 million as the company focuses on refining operations and expanding its market reach.
Though the regulatory situation at Bernard Lodge presents a short-term challenge, FESCO’s long-term strategy remains focused on securing a significant position in Jamaica’s LPG market. The company plans further expansion and investment in the sector to meet growing demand and build on its success in the energy industry.
