The ongoing Middle East conflict has sent shockwaves through global energy markets, pushing oil prices to levels not seen since the 2022 Russian invasion of Ukraine and triggering widespread forecasts of broad commodity price increases in the coming years. But for Jamaica, one critical energy import will remain insulated from this market turbulence, according to the island nation’s top liquefied natural gas (LNG) supplier.
The World Bank projects that 2024 global oil prices will reach their highest mark in nearly three years, with broader commodity markets set to see a 16% overall price surge by 2026 driven by climbing energy, fertilizer and key metal costs. Jamaica has already felt the strain of recent market shifts: retail gasoline prices on the island have jumped 20% since the Middle East conflict began, leaving consumers and industry stakeholders anxious about potential spillover into natural gas pricing.
In an exclusive interview with the Jamaica Observer, Steven Kobos, president and chief executive officer of Excelerate Energy, moved to ease those concerns, confirming that existing long-term contracts lock in stable LNG pricing for Jamaican customers that will not shift amid global volatility. Unlike LNG buyers that purchase supply on the volatile spot market, which has seen sharp price increases amid reduced export volumes from Persian Gulf producers, Jamaica’s contracted supply is legally protected from these market swings.
Kobos emphasized that his firm has no plans to divert contracted LNG shipments to higher-paying markets, a fear some industry observers have raised as European benchmark natural gas prices (the Title Transfer Facility index) skyrocket in response to the conflict. “Our business model is built on flawless operations, maximum reliability and keeping the commitments we make,” Kobos explained. “We have fixed contracted prices for our Jamaican customers, and that is exactly what we are delivering. Jamaican consumers are not paying a higher premium for LNG because of the war, and that will not change.”
Beyond confirming stable pricing, Kobos framed the current global energy crisis as a proof point for the value of contracted LNG as an affordable, secure energy source. He also pushed back against speculation that Excelerate would prioritize more profitable markets over its existing commitments to Jamaica, noting that the company’s decades-long track record across multiple countries demonstrates its commitment to honoring contractual obligations. “Some people joke that boring reliability is the new sexy, and that’s who we are,” Kobos said. “I’ve told the Jamaican government that we are a reliable partner, and any of the governments we’ve worked with for years will confirm that track record.”
This commitment to local partnership was already put to the test in October 2023, when Hurricane Melissa hit Jamaica. Within days, Excelerate mobilized its regional assets to deliver more than $1.3 million in emergency relief funding and supplies to the island, loading materials onto the company’s vessel *Excelerate Shenandoah* in Panama and sailing directly to Kingston. Though the firm is U.S.-headquartered and operates globally, Kobos said Excelerate views itself as a rooted member of the Jamaican business community, bound by a responsibility to support local stakeholders during crises.
“We believe companies are judged by their actions, not their words,” Kobos said. “When the markets you operate in face extraordinary challenges, that’s when you prove your commitment. We were fortunate to have regional assets in place to respond quickly, and we were proud to stand with Jamaica when it needed support.”