With Prime Minister Bruce Golding having confirmed the government's intention to seek new supplies of Liquefied Natural Gas (LNG) for the diversification of the island's energy needs, international companies have been making expressions of interest in the transport, regasification and distribution of the commodity to Jamaica.

Three Brussels-based firms are the latest in line.

EXMAR, a Belgian marine transporter specialising in gas tankers and gas-related energy solutions; Belgian constructor Besix; and the Belgian dredger, Dredging International, have all expressed interest in transporting LNG to Jamaica and construction of an offshore regasification unit at Port Esquivel.

However, a source at the Ministry of Mining and Energy, who did not want to be named, said the companies will have to stand in line.

"We have heard of EXMAR. A lot of entities have heard of government's decision to go LNG and have made expressions of interest for supply, transport and distribution," this source said. "However, since the government's procurement process must withstand all scrutiny, the choice of service providers will have to be in line with government procurement standards."

In August, Prime Minster Golding announced that Jamaica was close to signing agreements in relation to supplies of LNG with three different nations. Dr Ruth Potopsingh, head of the Petroleum Corporation of Jamaica, said she knew that discussions were proceeding, but she would not be at liberty to discuss the specifics.

"Nothing has been signed by us," she said.

Facilities not complete

The source at the Ministry of Mining said the government would be currently unable to undertake fixed commercial agreements, as facilities for regasification were not yet completed and other elements of the LNG programme were not yet in place.

"What is being pursued are arrangements and understandings," he said, adding "we are in constant negotiations."

Jamaica - with an oil bill of some $1.6 billion - has been considering the significant replacement of oil with natural gas supplies in the island's bauxite plants, the light and power company and others. The bauxite/alumina sector uses approximately a third of the power generated in Jamaica.

Projects being considered

Among the projects being considered for LNG was a US$1-billion expansion of the Jamalco alumina refinery - jointly owned by the Government and Alcoa - whose capacity was to be nearly doubled to 2.8 million tonnes a year. The refinery would have a new 80-megawatt natural gas-fired power plant, which would sell excess electricity to the national grid.

In July, the minister of mining and energy, James Robertson, announced that discussions for the supply of LNG were being pursued with Algeria.

The source at the ministry said last week that the prospect of getting adequate supplies has improved significantly, as several countries were in the process of developing new fields and others, including Brazil, which had discovered reserves almost as large as Qatar, had found new fields.

Robertson had also said in July that there was a possibility of obtaining LNG from Venezuela, through the PetroCaribe arrangements, and Trinidad and Tobago has also indicated a willingness to supply Jamaica, having pulled back from a previous deal earlier in the decade.

avia.collinder@gleanerjm.com