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LNG project in legal limbo

Published:Thursday | July 14, 2011 | 11:05 AM

Jerome Reynolds, Gleaner Writer



The committee, set up by the Cabinet to review the Government’s Liquified Natural Gas (LNG) project, has started deliberations on the legal implications of the Administration’s decision to retender the project.



The retendering follows a recommendation by the Office of the Contractor General (OCG).



The recommendation arose from an OCG probe, which found irregularities in the tender process where a consortium led by the Belgian firm, Exmar, emerged the preferred bidder.



Exmar, which has insisted it did nothing wrong, said it is not ruling out legal action if the LNG tender process is aborted.



Daryl Vaz, minister with responsibility for information said the review committee has indicated it needs more time to arrive at the best course of action.



The Government’s LNG project will see the construction of a floating storage and regasification unit, as part of the diversification of the country’s energy mix.



jerome.reynolds@gleanerjm.com