Massy eyes investment in Jamaica oxygen plant

Gas manufacturer Massy Gas Products (Jamaica) is eyeing the build-out of its operations for the storage and distribution of medical-grade oxygen in the island.

That revelation came less than 24 hours after the Ministry of Health and Wellness said it had made a policy shift in advocating the diversification of suppliers of oxygen amid a public spat with the sole distributor to its four regional health authorities.

As Jamaica’s coronavirus emergency has worsened, several healthcare facilities have been almost paralysed as supplies of oxygen ran critically low.

It is a critical component in keeping patients with COVID-19, a respiratory disease, alive, but the gas is used widely in the treatment of asthmatics, for the sustenance of newborns, and during surgery.

Massy’s core business is the supply of liquefied petroleum gas products under its brand GasPro to thousands of homes and businesses for more than 90 years. But that focus on LPG production has not distracted it from other investment opportunities

“We have approved plans for plant expansion to allow us to provide a more significant and regular supply of medical-grade oxygen in the shortest possible time ... ,” company Chief Executive Officer Rohan Ambersley told The Gleaner on Thursday.

“Once our facility is commissioned, it will be supporting our efforts to bring additional quantities of medical-grade oxygen into the country to supplement the existing local production.”

Currently, sister company Massy Gas Products (Trinidad) Ltd has been a critical relief supplier of medical-grade oxygen for several markets in the region, including Jamaica. When demand outstrips supply, the Trinidadian manufacturer is one of the companies from which IGL sources medical oxygen.

Massy Gas Products (Trinidad) Ltd can currently supply a total 30 metric tonnes of liquid oxygen per day for all markets, said Ambersley.

The Trinidad-based company also provides small amounts of industrial-grade oxygen to the local market as it is a core component of their business. This has allowed IGL to become the sole provider of medical-grade oxygen to healthcare facilities locally.

Even though Ambersley anticipates that his company would not be able to match the output of IGL, he explained that the current dilemma demanded that national interest outweigh commercial motivation.

“The extreme oxygen shortage being experienced in our healthcare facilities, however, is a crisis we couldn’t ignore. As a business, we took a decision to assist where we could immediately ... . This is one space where the best interest of the country far outweighs commercial competitiveness,” he said.

PART OF SUPPLY SOLUTION

Massy has also donated $3.5 million worth of PPE to the Ministry of Health and Wellness.

Ambersley declined to put a dollar figure on construction of the oxygen plant in Jamaica, but he revealed that interim steps have been taken to ensure that the company is part of the supply solution locally.

“We are advanced in fast-tracking our own ability to be able to supply medical-grade oxygen. It requires significant investment, which we are prepared to make in the interest of the Jamaican people,” he said,

IGL launched an opening salvo on Wednesday when it released a statement claiming that the Government had not provided it with sufficient information for the demand of oxygen if a third COVID-19 wave occurred.

“Even without a response to repeated requests for forecasts of requirements from the authorities for medical oxygen, in recent months, IGL invested millions of Jamaican dollars in the upscaling of facilities/storage and distribution capacity,” the company said.

IGL explained that the shortage has been caused by a surge in demand, which was driven by the increase in infection rates.

However, IGL’s claim about not being informed beforehand about demand was rebutted by the Ministry of Health and Wellness on Thursday.

The ministry countered that it had discussions with the company on May 30 to supply just over 400,000 cubic metres of oxygen if the company went into a third wave.

The ministry also shared that based on its current estimation, current oxygen usage has not currently surpassed the capacity for oxygen that was projected by IGL and which it pledged to meet.