Jamaica's expectations of a contracted supply of liquefied natural gas (LNG) from Trinidad have been stymied by an apparent cancellation of this arrangement by that country's National Gas Company (NGC).

According to reports coming out of Trinidad, the state-owned NGC has described the proposed sale agreement with Jamaica as impractical on the basis of other export commitments for natural gas and has dismissed the plans with a terse comment that Trinidad simply "has none to spare".

This has left Jamaica literally holding the bag in spite of grand announcements earlier this year by Prime Ministers Portia Simpson Miller and Patrick Manning confirming an MoU signed in 2004 by Manning and former Jamaican Prime Minister Percival Patterson.

The availability of cheaper and cleaner liquefied natural gas was factored into the expansion plans for Jamalco, and its cancellation will obviously be a severe setback to the Government in its partnership negotiations with Alcoa, aimed at doubling the capacity of the alumina refinery in Clarendon.

Government sources have already indicated that the Trinidad about-face could derail the US$1.6 billion investment project.

To put this into sharper perspective, any delay incurred in resuming this arrangement with Trinidad, or in seeking alternative sources, could affect Jamaica's ability to compete as an alumina supplier in a global market that is currently seeing a surge in alumina production capacity by other countries, notably China.

The Jamalco project may also be facing another dilemma with the long-term Cockpit Country mining plan seemingly forced into abeyance by a strong environmental lobby.

It is likely that the Trelawny reserves would have been a critical factor in expansion plans for the industry, and that Alcoa would have needed assurances that such reserves would be available for satisfying future capacity needs.

Notwithstanding the pros and cons of the environmental arguments, or the unsettling behaviour of our CARICOM neighbour in this instance, an investment of US$1.6 billion, as well as the total bauxite industry presence constituting a major contributor to Jamaica's national budget, cannot be viewed lightly.

The Government must take the lead to secure and maintain a balanced approach to resolving the environmental, investment and future developmental issues now tailgating the industry.

That balanced approach is sorely needed. We must return to the table with Trinidad. The environmentalists have performed a service in bringing the concerns of the natural habitat to the fore. Allegations of any industry social shortcomings must be taken seriously.

But on the other side of the coin, we have seen where the departure or temporary closure of plants in the 1980s created a hole in the budget and led to widespread ghost town effects and economic and social structure fallout in those areas.

We endorse and will press for a meeting of the different parties to rationalise the issues. And when they meet, it is clear and imperative that post-bauxite sustainability planning must be added to the agenda.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.