( L - R ) Mullings, Paulwell and Frankson Edmond Campbell, News Coordinator
There are serious questions being raised about Venezuela's ability to establish a liquefied natural gas (LNG) plant in time to supply Jamaica with that fuel by 2009, as part of the accord signed between both countries on Tuesday.
Prime Minister Portia Simpson Miller and Venezuelan President Hugo Chavez inked the deal at the Half Moon hotel in Montego Bay, St. James.
Under the agreement, Venezuela is expected to supply more than two million tonnes of LNG (150 million cubic feet) per day to Jamaica, to facilitate the expansion of power generation and the bauxite alumina sector.
However, at least one expert in the field has said it would be difficult for Venezuela to construct a LNG facility within the required time frame.
Frank Lwkkin, president of the Natural Gas Company of Trinidad and Tobago, told The Gleaner that it was "highly unlikely" that the plant could be constructed in less than three years.
Construction of the first LNG plant began in mid-1996 with actual production of LNG getting under way in April 1999.
Further, he pointed out that equipment and machines used in LNG plants were in high demand because of the establishment of at least three of these facilities in Qatar and other middle eastern countries.
However, Minister of Industry, Technology, Energy and Commerce, Phillip Paulwell is insisting that the agreement would be honoured by the Venezuelans by 2009.
He told The Gleaner yesterday that the Venezuelans had given a commitment that they would expedite the programme to facilitate the delivery of the LNG to Jamaica in about two years.
Mr. Paulwell contended that President Chavez had indicated that the LNG could be supplied before 2009, but Jamaica would not be in a position to receive it at an earlier date.
The minister with responsibility for the energy sector, said the engineering work was close to completion and that "they would be fast-tracking the purchases of the equipment required to establish the facility".
"They have said to us that they can do it by 2009, and I have to accept them at their word," declared Paulwell.
New arrangement
He argued that the Venezuelan Government had delivered on its PetroCaribe accord with Jamaica and was now prepared to put in the investment for this new arrangement.
It will cost approximately US$2 billion to establish the LNG plant in Venezuela.
Meanwhile, the Ja-maica Manufacturers' Association yesterday commended the Govern ment for its swift action in negotiating a LNG deal with Venezuela in light of the recent actions of its CARICOM partner Trinidad, in reneging on a similar agreement."We would also recommend that the Government go one step further to not only negotiate for related finished products from Venezuela or other extra-regional sources but to also grant a waiver of the Common External Tariff on such products," the JMA said in its statement. "This would ensure that the Jamaican consumer benefits from a cost-effective product at the most competitive price," the statement added.
