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Jamaica could abandon Trinidad LNG deal

Published:Wednesday | November 28, 2012

Jamaica may give up on its pursuit of securing Liquid Natural Gas (LNG) from Trinidad and Tobago.



Natural gas is one of the main alternative sources of energy being pursued by the government, as it seeks to cut the oil bill and the cost of energy.

Jerome Reynolds, Gleaner Writer



The issue was raised in Parliament yesterday during questions by Opposition Spokesman on Energy, Gregory Mair to the Energy Minister Phillip Paulwell.



Mair said Trinidad recently discovered reserve of natural gas in territorial waters.



He therefore wanted to know if Jamaica will again be pushing for the twin-island republic to honour a decades-old Memorandum of Understanding to supply natural gas to Kingston.



Paulwell said the Administration has been in discussions with Trinidad on the matter, but he said those talks have not been fruitful.



It is for that reason he hinted that Jamaica could be abandoning the Trinidad deal.



In November 2004, Jamaica and Trinidad signed a memorandum of understanding for the supply of 1.1 million tonnes of LNG per annum over a 20-year period.



The gas would be used by bauxite-alumina companies and the Jamaica Public Service Company.



Patrick Manning, the prime minister of Trinidad and Tobago at the time, said his government would not renege on the agreement to supply Jamaica with LNG, but the arrangements never materialised as Trinidad said it did not have enough to supply.



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