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Authorities look to Algeria, Venezuela as possible LNG suppliers - Jamaica

Published: Friday, July 3, 2009 15:05 (GMT-0400)

By Business News Americas staff reporters

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The Jamaican ambassador to Washington, Anthony Johnson, is in talks with Algerian officials regarding possible supply of LNG to Jamaica, according to a statement from the Caribbean island's government.

"We are waiting on a date to actually be visited, or to visit Algeria to decide on that," Jamaica's energy and mining minister James Robertson said.

The country could also obtain LNG from Venezuela under the PetroCaribe energy cooperation program.

"[Venezuela's] commitment is to sign supply contracts with any of the 18 PetroCaribe members, [from] September 2009 to March 2010," Robertson said.

Jamaica is already evaluating land for LNG storage outside Port Esquivel, Old Harbour.

Trinidad & Tobago, an LNG exporter, signed an agreement with Jamaica several years ago to supply some 160M3f/d (4.53M3m/d), though the subsequent abandonment of a major exploration well and the high cost of regasification left the deal unfulfilled.

Trinidad & Tobago's Prime Minister Patrick Manning recently told his country's parliament that the global economic downturn has resulted in decreased gas demand, and that new technological developments such as floating regasification terminals have reduced costs. As a result, supply to Jamaica is again a possibility.

Jamaican imports of LNG would be used to supply the alumina sector, as well as fire power plants.

In 2007, state-run Petroleum Corporation of Jamaica launched a process to develop a LNG reception, storage and regasification terminal that did not advance.

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