Noel Thompson, Freelance Writer

WESTERN BUREAU:

Venezuelan President Hugo Chavez and Prime Minister Portia Simpson Miller yesterday signed a memorandum of understanding (MoU) for the South American country to supply natural gas to Jamaica by 2009.

Mr. Chavez said his country would also supply over two million tonnes (150 cubic feet) of oil per day, which the Jamaican Government believes will be adequate to supply the country's bauxite and energy sectors.

Phillip Paulwell, Minister of Industry, Technology, Energy and Commerce, described the deal as a "great day for Jamaica".

"We are approaching it in the same way as we have done under the PetroCaribe framework. The details are to be established later," Mr. Paulwell said.

"The MOU speaks to a team that has now been established comprising Venezuelan and Jamaican officials who will be fleshing out the details of other joint ventures that we are pursuing with them," he continued.

The signing took place at Half Moon Hotel in Montego Bay, St. James, following a closed-door meeting during which President Chavez and Mrs. Simpson Miller held discussions on a raft of bilateral, trade, cultural and economic issues.

The South American head of government was en route to Haiti when he stopped in the island for a working visit with Mrs. Simpson Miller.

The two-year waiting period is to allow for infrastructure work, which the Petroleum Corporation of Jamaica has to undertake at its refinery in order to manage the supply of natural gas.

Trinidad's Prime Minister, Patrick Manning, had signed a similar MoU sometime ago to supply Jamaica with LNG, but recently reneged on the agreement. Trinidad has said it has none to spare.

Proposal to caribbean

Mr. Chavez is also proposing to Caribbean nations that they come on-board with Venezuela's ALBA programme, which is aimed at economic development for the region and Latin America.

Paulwell said Jamaica was now moving ahead with Venezuela on the oil deal, and that government had embarked upon a project to establish a facility in Jamaica from which gas would be distributed to the bauxite alumina and to the electricity generation sectors that would facilitate expansion of the industries.

"We were able to approach Venezuela within the context of PetroCaribe and they have responded favourably and have indicated that they will have the amount of gas to supply us to meet the required need of the bauxite alumina and our electricity generating sectors. We are very grateful," Mr. Paulwell said.