Trainees like these have been upgrading their skills in anticipation of the Jamalco expansion project, but uncertainties over LNG supplies could kill the project and hope for jobs. Here trainee welders demosntrate their skills at the Jamalco HEART Breadnut Valley Engineering Institute. - CONTRIBUTED

Head of the state-owned National Gas Company in Trinidad and Tobago, Frank Look Kin says the twin-island state still has intentions of supplying LNG to Jamaica but at a date beyond 2009.

"We haven't reneged on any deal; it is still on, but it will come at a later date," said Look Kin.

Radio reports last week said Jamaica's Prime Minister Portia Simpson Miller had fired off a letter to Port of Spain notingher disappointment that the deal had collapsed.

On Monday, government's chief spokesman, Information Minister Donald Buchanan, said the deal remained intact.

But given Look Kin's timeline for supply, Jamaica could still lose out on the US$1.6 billion Jamalco expansion project.

CRUNCH TIME

Don Wehby, head of GK Investments. - File

Senator Anthony Hylton had said on radio that the crunch time for Alcoa, Jamaica's partner in the refinery, would be 2010.

But on Tuesday, spokesman Brian Doy, while skirting direct comment on the minister's claim, suggested that nothing but a final supply contract would ease Alcoa's concerns.

But even then, price would be a factor.

"The major expansion at Jamalco remains contingent on agreements being finalised to bring natural gas to Jamaica and to the refinery," said Doy, manager of public affairs, communication and government relations.

The LNG agreement signed between Port of Spain and Kingston had contemplated a price of more than US$3 for the gas, but with world prices currently running at more than US$7/mBtu, there are expectations in the two capitals that a new price will have to be negotiated.

That issue appears to be worrying Alcoa, and indications are that the company ?recently toppled from its No. 1 slot in the world by a Russian merger of Rusal, SUAL and Glencore ? may be hunting other prospects.

"Once these agreements are signed, the project will be re-evaluated against factors such as market conditions and expansion opportunities at other locations around the world," Doy told Wednesday Business.

Meantime, Jamalco has began commissioning the 150,000 of capacity it just added under the US$120 million phase one 'Early Works Programme'.

The agreement between Jamaica and Trinidad and Tobago signed 2004 with 1.1 million tonnes of LNG per annum over a 20 year period for use by the Jamaican aluminium company (Jamalco) and the Jamaica PublicService Company (JPSCo) power plants.

Look Kin said Trinidad has always told Jamaica that LNG supplies could not come from the existing four trains of Atlantic LNG and that supplies would come from a proposed new pipeline dubbed Train X.

Decision on moving forward with plans on Train X was delayed because of poor results in recent years in the exploration of new gas resources.

Trinidad has also hinged its hope on accessing natural gas for Train X from the border it shares with Venezuela.

After four years of negotiations, the two countries have agreed to share the natural gas reserves in the Platforma Deltana gas field which underlies the maritime border between the countries.

About three-quarters of the natural gas in the Loran field, off Trinidad's southeast coast, will go to Venezuela.

NATURAL GAS

The Loran Field is part of the Platforma Deltana, which is believed to bottle an estimated 10 trillion cubic feet of natural gas, about 7.3 trillion of which will go to Venezuela.

Look Kin said while Trinidad and Tobago has had to delay export of LNG to Jamaica, it has been assisting the country in finding other sources of LNG supplies including looking to Venezuela for natural gas.

"We were the ones who suggested to them to go to Venezuela and explore talks, since they already have the PetroCaribe agreement," he said.

business@gleanerjm.com