Promigas says it's committed to LNG project

Points to financial strength of shareholders

Promigas, the Colombian gas pipeline company, says that it will remain part of a consortium with which the government is negotiating to build a liquefied natural gas (LNG) facility in Jamaica - a decision that has been warmly welcomed by the Jamaican authorities.

"Promigas is a very strong company, both technically and financially, and it is great to know that they remain committed to the LNG project," said Chris Zacca, the head of a government team overseeing the project.

Promigas' continued membership of a consortium headed by the Belgian outfit, Exmar Corporation, appeared to have been thrown into doubt when its former parent, the Houston-based energy firm, announced it was selling its 52.13 per cent stake to a clutch of Colombian firms, including the big financial group, Corficolombia.

But yesterday Promigas' CEO Antonio Celia Martinez-Aparicio said the company was, "willing and eager to participate in the Jamaica LNG project ... in conjunction with our consortium partners".

Exmar apart, the other consortium partner is the Jamaican outfit, Caribbean LNG, headed by Ian Moore, the former chairman of the Petroleum Corporation of Jamaica, which initially develop the project.

Geared to convert Jamaica's energy reliance from oil to the natural gas, the project calls for the establishment liquefied natural gas terminal, a regasifcation facility and pipelines to transport the gas from the plant to end users.

But the project has been mired in controversy over whether Moore, when he was chairman of the PCJ, had inside knowledge that informed the Exmar bid and whether other potential bidders were fairly treated. These issues are being investigated by the Office of the Contractor General.

The project has been further clouded by the absence of an open, data-driven economic debate on efficacy of natural gas versus other fuels as well as a consultants' review that apparently showed that large segments of the scheme were poorly conceptualised.

But in an emailed statement to the Wednesday Business, Celia Martinez-Aparicio insisted that the project was not only economically and environmentally good for Jamaica, but appeared to flag up the financial clout that Promigas' new owners would bring to the table

"Corficolombia, the largest financial group in Colombia and Promigas' shareholder for more than 30 years, has accompanied our organisation in its development and has a significant participation in the energy sector," he said. "Likewise, Emprass de Energia de Bogota (one of the shareholders to which AEI has sold its stake) has an investment portfolio in important energy companies."

Celia Martinez-Aparicio added: "Both corporations share and support Promigas' business development vision in relation to natural gas transmission and distribution in Colombia and international markets."