LNG worries... delay again

Arthur Hall, Senior News Editor

The Government's long-touted plan to push down the cost of electricity for Jamaicans with the introduction of liquid natural gas (LNG) has hit yet another snag.  It is anticipated that electricity bills will come down by as much as 30 per cent with the introduction of LNG and the planned construction of a new plant by the Jamaica Public Service Company (JPS) in St Catherine.

But indications are that the 2014 timeline for the introduction of LNG will not be met, and early 2015 is also looking unlikely.

Head of the LNG Steering Committee, Dr Carton Davis, last week confirmed the likely delay but he did not provide a new timeline for the project which is already well past its initial 2012 projection.

Responding to questions from The Sunday Gleaner about new problems in the planned introduction of LNG, Davis said, "I am almost certain that a September 2014 (deadline) is not realistic, given where we are." That was in contrast to the optimism expressed by Energy Minister Phillip Paulwell when he was asked a similar question in February.

Synchronising times

"I have been assured that we are making every effort to ensure that the timeline for completion of the new plants and the infrastructure are synchronised with the timeline for completion of the delivery of LNG," said Paulwell then.

Paulwell's statement came days before the JPS declared that its plan to invest US$616 million (J$53 billion) to construct a LNG plant in Old Harbour, St Catherine, could be abandoned if the Government fails to guarantee a steady supply of the gas.

"Quite frankly, this project will not go forward unless we are certain that natural gas is coming to Jamaica, and I mean certain," Dan Theoc, chief financial officer of the JPS, told journalists.

"We are saying over the next six months (August) the process will be finalised so that we can have certainty on the matter before we move forward in complete earnest with the project," added Theoc.

The Government has completed one aspect of its plan to introduce LNG, with the selection of the Korean firm Samsung to construct the floating storage regasification unit, but other key areas such as the source and supply of the gas are still to be determined.