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Stabroek News

EDITORIAL - More action less talk, Mr Manning
published: Tuesday | February 13, 2007

Mr. Patrick Manning, the Prime Minister of Trinidad and Tobago, has to do more than make statements if he expects to win back Jamaica's trust and assure us of his government's commitment to the ideals of the CARICOM Single Market and Economy (CSME).

His declarations, therefore, have to be backed by concrete action. So, we look forward to the follow-up from Mr. Manning to his promise that Jamaica will be supplied with LNG from Trinidad and Tobago, to fuel a major energy conversion programme here. We, however, would not advise Prime Minister Simpson Miller nor the Jamaican authorities to hold their breaths.

Indeed, the Trinidadians knew that a US$1.6 billion investment by Alcoa to double the capacity of the 1.5 million tonne alumina refinery it jointly owns with the Jamaican Government was predicated on the LNG project that would lower the cost of energy and help make the plant globally competitive.

At first, Port-of-Spain quarrelled over what would be their pricing obligation for LNG, within the concept of the CSME, this seamless economic space that the countries of the Caribbean Community are seeking to create. Kingston insisted that Jamaica, being part of the same market, should enjoy the same price that Trinidadian domestic producers pay for natural gas. The only addition would be for cost liquefaction and transportation.

The Trinidadians held that LNG was a different product that should be subject to Henry Hub pricing, thus seeking to place Jamaica on the same plane as "foreign" buyers. This is a dispute that will eventually be resolved by the Caribbean Court of Justice, but in 2004, Mr. Manning signed a memorandum with then Prime Minister P.J. Patterson to supply 1.1 million tonnes of LNG a year on a preferential basis, although the specific price was not agreed. He signed the same agreement with Mrs. Simpson Miller when she succeeded Mr. Patterson.

But in reality, Port-of-Spain dithered, and while Jamaica waited, Alcoa began to have second thoughts about the expansion project. Alcoa's and Jamaica's fears would have been deepened with the statement late last year by Frank Look Kim that Trinidad did not have the natural gas with which to supply Jamaica. It could hardly be Mr. Look Kim to whom Mr. Manning referred as the "dubious sources" that had stated Port-of-Spain's inability to fulfil the LNG compact. What Mr. Manning should be aware of is that Jamaica's project cannot await an agreement with Venezuela on the development of gas fields that straddle the borders of the two countries. By the time that happens, new alumina refineries will be well under way in China and the Alcoa plant will hardly be as attractive as it used to be. In other words, this is an issue that demands urgency.

It also demands common sense politics, which, for Trinidad and Tobago, also translates into good economics. Jamaica is Port-of-Spain's largest market in CARICOM; it enjoys a balance of trade of about US$500 million. It is in Trinidad and Tobago's interest to support Jamaica's economic growth to help maintain that market. And Jamaica, after all, only requires a fifth of its current gas supply. Some market shifting may be in order.

And Mrs. Simpson Miller must not let Mr. Manning forget that balance of trade figure.


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.

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