Chavez saves Jamaica's LNG plan

[Karl]

<TABLE cellSpacing=0 cellPadding=1 width="100%" border=0><TBODY><TR><TD><SPAN class=TopStory>Chavez saves Jamaica's LNG plan</SPAN>
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>MARK CUMMINGS, Senior staff reporter
Tuesday, March 13, 2007
</TD></TR></TBODY></TABLE>
<P class=StoryText align=justify>MONTEGO BAY, St James - Venezuela and Jamaica yesterday signed a Memorandum of Understanding (MOU) which will allow Kingston to buy 2.5 million tonnes of Liquid Natural Gas (LNG) annually from Caracas - a development that will give impetus to Jamaica's plan for major developments in the bauxite/alumina and electricity generation sectors.<P class=StoryText align=justify>The agreement, signed at the Half Moon Hotel in Montego Bay, by Jamaica's Prime Minister Portia Simpson Miller and Venezuelan President Hugo Chavez, came two weeks after Trinidad and Tobago, which was to sell Jamaica 1.15 million tonnes of LNG, backed out of the deal.<P class=StoryText align=justify>The agreement with Venezuela yesterday was immediately welcomed by the Jamaica Manufacturers' Association, which praised the Government for its swift response after the action Caricom partner Trinidad and Tobago.<P class=StoryText align=justify>At the same time, the association urged the Government not only to negotiate for related finished products from Venezuela or other extra-regional sources, but also to grant a waiver of the Common External Tariff on such products to ensure consumers benefit from the most competitive prices.
Last month, Trinidad and Tobago announced that it was unable to honour an agreement, signed two years ago, to supply Jamaica with low-cost liquefied natural gas.<P class=StoryText align=justify>Energy Minister Phillip Paulwell, who was present at yesterday's signing, said a top level team of technocrats from Jamaica and Venezuela has been established to hammer out the details of the agreement.<P class=StoryText align=justify>The deal, Paulwell added, was expected to be in line with agreements between Caracas and Kingston under the PetroCaribe accord.<P class=StoryText align=justify>Jamaica is among 13 Caribbean Community (Caricom) states that signed the PetroCaribe agreement in 2005, under which countries are being offered a facility to cushion the impact of high international energy costs through a deferred payment scheme.<P class=StoryText align=justify>Paulwell told reporters yesterday that Venezuela would start supplying LNG to Jamaica in 2009, at which time the necessary infrastructure will be in place to accommodate the supplies.<P class=StoryText align=justify>Jamaica - with an oil bill of $1.6 billion last year - has been pursuing the idea of energy conservation programmes under which the island's bauxite plants, the light and power company and other big companies would begin using natural gas in place of oil.<P class=StoryText align=justify>Paulwell, in expressing pleasure at the signing of the MOU with Venezuela, expressed confidence that the LNG supplies from that country would meet the needs of the bauxite/alumina and electricity sectors.<P class=StoryText align=justify>"The supplies that we would be getting from Venezuela would adequately meet the needs of both the bauxite/alumina and electricity generation sectors; and in that regard, we are very grateful," said Paulwell. "This is a very great day for us, in that we are now satisfied that all the gas that we are going to need will be available to Jamaica."<P class=StoryText align=justify>Chavez, who arrived in the island early yesterday en route to the improverised country of Haiti, also held talks with Simpson Miller and several other Government officials.<P class=StoryText align=justify>Simpson Miller told reporters that aside from the fruitful energy talks, the Venezuelan president has also promised to assist the country in the provision of health care.

[Karl]

RE: Chavez saves Jamaica's LNG plan

Chavez, PM Simpson-Miller sign LNG deal
published: Tuesday | March 13, 2007 <DIV class=KonaBody ssBEK="true">

Noel Thompson, Freelance Writer

WESTERN BUREAU:

Venezuelan President Hugo Chavez and Prime Minister Portia Simpson Miller yesterday signed a memorandum of understanding (MoU) for the South American country to supply natural gas to Jamaica by 2009.

Mr. Chavez said his country would also supply over two million tonnes (150 cubic feet) of oil per day, which the Jamaican Government believes will be adequate to supply the country's bauxite and energy sectors.

Phillip Paulwell, Minister of Industry, Technology, Energy and Commerce, described the deal as a "great day for Jamaica".

"We are approaching it in the same way as we have done under the PetroCaribe framework. The details are to be established later," Mr. Paulwell said.

"The MOU speaks to a team that has now been established comprising Venezuelan and Jamaican officials who will be fleshing out the details of other jointventures that we are pursuing with them," he continued.

The signing took place at Half Moon Hotel in Montego Bay, St. James, following a closed-door meeting during which President Chavez and Mrs. Simpson Miller held discussions on a raft of bilateral, trade, cultural and economic issues.

The South American head of government was en route to Haiti when he stopped in the island for a working visit with Mrs. Simpson Miller.

The two-year waiting period is to allow for infrastructure work, which the Petroleum Corporation of Jamaica has to undertake at its refinery in order to manage the supply of natural gas.

Trinidad's Prime Minister, Patrick Manning, had signed a similar MoU sometime ago to supply Jamaica with LNG, but recently reneged on the agreement. Trinidad has said it has none to spare.

Proposal to Caribbean

Mr. Chavez is also proposing to Caribbean nations that they come on-board with Venezuela's ALBA programme, which is aimed at economic development for the region and Latin America.

Paulwell said Jamaica was now moving ahead with Venezuela on the oil deal, and that government had embarked upon a project to establish a facility in Jamaica from which gas would be distributed to the bauxite alumina and to the electricity generation sectors that would facilitate expansion of the industries.

"We were able to approach Venezuela within the context of PetroCaribe and they have responded favourably and have indicated that they will have the amount of gas to supply us to meet the required need of the bauxite alumina and our electricity generating sectors. We are very grateful," Mr. Paulwell said.



</DIV>

[Mosiah]

RE: Chavez saves Jamaica's LNG plan

<DIV>I guess the Trinis hasve finally got their revenge. We pulled out of the Federation, they pulled out of this oil deal.</DIV><DIV></DIV><DIV>To hell with them! Wait till Venezuela takes back their territory! </DIV>