Business

Linda Hutchinson-Jafar, Business Writer

Trinidad's new energy minister said Tuesday that all energy-related deals, including the 2004 agreement to supply liquefied natural gas (LNG) to Jamaica, are under review.

But Caroline Seepersad-Bachan would not say whether this meant Trinidad would be carving out supplies for its regional trading partner, which is about to build out its LNG infrastructure.

"We will be reviewing the position at this point in time. We will be reviewing all those projects, even the downstream projects," said Seepersad-Bachan.

"LNG is under review because we have new criteria for the selection of projects. We do have new criteria for the assignment and allocation of gas," she said.

Asked whether a review was possibly sending mixed signals to the Jamaican government, Seepersad-Bachan said the country has to look at its natural gas capacity.

"I am awaiting recommendations from the Ministry of Energy on that matter. I have not given that matter my full attention at this point in time but bear in mind, we are very cognisant of our obligations contractually," said the new energy minister.

Seepersad-Bachan said she was not sure the issue of LNG was discussed last week in Kingston during bilateral meetings between Prime Ministers Bruce Golding and Kamla Persad-Bissessar.

In 2004, Trinidad and Jamaica signed an agreement for the supply of 1.1 million tonnes of LNG per annum over a 20 year period, beginning 2009, that would mainly fuel alumina company Jamalco and utility company Jamaica Public Service Company power plants.

Trinidad later said that it was unable to supply LNG to Jamaica because it was low on gas supplies.

But last year, Patrick Manning, who was ousted in two-month-old elections, said sending LNG to stimulate investments in Jamaica's alumina sector had become a national priority for Trinidad.

At the time, the world market had turned, leading to a supply glut in the United States.

Trinidad is facing declining gas reserves and the new government is putting emphasis on exploration, appraisal and development of drilling to increase reserves.

On Tuesday, US-based independent Petroleum consultants, Ryder Scott revealed that the country's proved reserves for 2009 dropped to 14.4 trillion cubic feet (TCF).

In a 2008 audit by Ryder Scott, proved reserves stood at 15.4 TCF, down from 17 TCF in the previous year's audit.

Seepersad-Bachan said Trinidad and Tobago is utilising its natural gas reserves at an annual rate of 1.4 TCF.

"Our goal is 100 per cent replacement of annual gas production, therefore there is a critical need for Trinidad and Tobago to encourage exploration, appraisal and development drilling to move resources into one or more of the reserve categories," she said at the launch of the latest gas audit.

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