Jamaica moves to facilitate Trinidad’s LNG supply

Jamaica will require approximately $ 1.5 bn ($ 240 mm) in infrastructural development over the next three years in order to utilise the 1.15 mm tpy of LNG that Trinidad and Tobago has agreed to supply the nation. However, Prime Minister P.J. Patterson has expressed confidence that the costs will be met, given a joint venture of 40 % share in the facilities to be undertaken by the twin island republic, as well as financing interest already shown by other entities.
But citing "market sensitivity" in Trinidad and other locations, the Prime Minister refused to disclose the cost at which the LNG will be provided to Jamaica.

Mr Patterson told that it will be necessary to construct marine and harbour facilities (to receive LNG vessels) as well as gas distribution pipelines, LNG storage facilities, and regasification facilities. The structures must be in place by 2008, when Trinidad is scheduled to commence the 20-year supply period agreed to in a Jamaica/Trinidad memorandum of understanding signed in Trinidad and Tobago.
"The LNG marine terminal, storage and regasification facilities will be established at Port Esquivel near Old Harbour, along with pipelines to take the natural gas from the Port Esquivel terminal to the gas users," Mr Patterson said.

With the Trinidad-supplied LNG earmarked for electricity generation and aluminium refining, the gas users will primarily include the Jamaica Public Service Company's Old Harbour and Hunts Bay power stations as well as the expanded Jamalco oil refinery.
Mr Patterson, however, noted that Jamaica has a potential demand for an additional 1 mm tons of LNG which would supply other power stations and aluminium refineries as well as large scale industrial facilities.

The Caribbean Cement Company and Red Stripe have already signalled their interest, he added while noting that the additional LNG could also be used as an alternative to petroleum fuels in the transport sector.
"To ensure that we maximise the potential for the LNG to provide a stable energy base in our economy, I have charged a team led by Ambassador Anthony Hylton, who has a special assignment in this area, to investigate the procurement of additional LNG supplies from other countries," Mr Patterson said.