Cabinet Approves use of FSR Units for LNG Importation

Cabinet has approved the use of Floating Storage and Regasification (FSR) units to facilitate the importation of Liquified Natural Gas (LNG) for local use, as an alternative source of fuel.

Minister with responsibility for Information, Telecommunications and Special Projects, Hon Daryl Vaz, said "as a result of this, the requests for proposals have gone out and we have a timeline, starting in November and ending in April 2010, which will be for the execution of the LNG supply term sheet. The Government considers this a priority and, as such, is trying as best as possible, to fast track it, while adhering to the procurement requirements."

He also noted that once this initiative is fully realized, it will save on fuel costs for consumers and the Government.

Mr. Vaz said Cabinet had considered the technical options regarding a permanent LNG importation and regasification terminal within the island, but, the Petroleum Corporation of Jamaica (PCJ) determined that, in light of all the financial considerations, the most suitable form of technology would be the use of the FSR units.

This determination was made following consultations with an LNG project teams, including independent experts from the energy sector and representatives of the Ministry of Energy and Mining, Petrojam, the Jamaica Bauxite Institute and the Office of the Prime Minister (OPM).

FSR units are facilities that receive LNG from offloading carriers for the fuel plants.
The Government began exploring the possibility of natural gas as an alternative fuel in 2001, under an initiative spearheaded by the then Ministry of Industry, Commerce, Science and Technology.

Mr. Vaz said "the objective was to lessen the country's near total dependence on crude oil and petroleum products, decrease exposure to the rigours of the international oil market, lower fuel costs and utilize environmentally friendly fuel options."

He added that LNG is seen as the fuel choice capable of satisfying these objectives, while having the potential to grow the economy through increased competitiveness in global markets.

Potential suppliers of LNG include Trinidad and Tobago, Venezuela, Colombia, Brazil, Algeria and Quatar.

 

Source: Jamaica Information Service (JIS)