NEGOTIATIONS TO ESTABLISH LNG SECTOR ADVANCED
State Minister in the Ministry of Energy and Mining,
Hon. Laurence Broderick says negotiations for the
establishment of a local liquefied natural gas (LNG)
industry are far advanced.
He said "we are confident that we can tap into an increased availability of LNG coming on the market. Major technological changes, which have significantly reduced the costs of transporting LNG from the major producing countries to Jamaica, have been taking place in the last three years. Extensive negotiations are taking place with major users of fuel and interested foreign partners to develop a completely new natural gas industry for Jamaica."
Mr. Broderick said a switch from oil to LNG would revolutionize Jamaica's industrial landscape, particularly within the bauxite and alumina sector, and go a far way in resuscitating the economy.
He said "a lower energy bill is a vital component in any plan for the restructuring of the Jamaican economy, and this must be undertaken if it is to regain lost export earning capacity.”
The successful implementation of the LNG industry would result in a substantial reduction in our balance of payment, stabilization of our currency, reduction in the cost of fuel to the ordinary household consumer, and our major export earning industries (being more) competitive in the world markets.
The negotiations, being led by Energy and Mining Minister, James Robertson, are seeking to secure long term supply of LNG from providers, determine the best import re-gasification solution for Jamaica, and identify partners for the supply of technology, capital and management for the industry.
Minister Broderick added that "while our immediate
attention is on the bauxite industry and the Jamaica
Public Service Company, natural gas will also open up
opportunities for transportation, and other industrial
uses."