Venezuela
pushing to supply CNG not LNG
Trinidad Express
Port
Spain
Petroleumworldtt.com
04 15 07
Venezuela
has shown a preference for Compressed Natural
Gas (CNG) in its deal to supply Jamaica
with the much-needed fuel, which forms a critical
component
of the island's plan to move towards cheaper energy.
It will, at the same time, create a possible deal
saver for the multibillion-dollar investment by
alumina giant Alcoa, according to ministry officials.
The deal between Venezuela and Jamaica, according
to Energy Minister Phillip Paulwell, also ties
into the South American country's plan to build
infrastructure that would support its diversification
of energy exports.
"The Venezuelans had put compressed natural
gas on the table," Paulwell told the Sunday
Finance. "They see this as a new dimension
for energy export and an opportunity to build infrastructure
to support the transport of the gas."
Jamaica would be the first market to which the
South American country would export.
Compression is a cheaper alternative to liquification
for transporting natural gas, and does not require
a regassification plant at the point of delivery.
With the news that the country was moving ahead
with a liquefied natural gas (LNG) agreement with
Venezuela, Clive Mullings, Opposition spokesman
on energy, up to last Thursday made public calls
for exploration of cheaper fuel options such as
CNG and methanol.
Paulwell's
ministry saw it fit to respond in a press statement
recently, by stating that "the
agreement makes provision for the supply of natural
gas", but that the ministry was "now
in the process of determining how best to transport
the gas, bearing in mind required infrastructure
to support such supplies".
Up to the middle of last year, government officials
were still mulling over whether to proceed with
a US$350-million regassification facility to be
located in Old Harbour, St Catherine. But the high
cost led them to seek alternative means, such as
a floating barge or CNG.
Either way, it was important to establish the
source of gas that would ensure that American alumina
producers, Alcoa, would proceed with its US$1.6-billion
investment in the island, which was largely predicated
on the availability of cheaper energy, particularly
in light of Trinidad and Tobago's announcement
that it had insufficient natural gas to supply
Jamaica as agreed two years before with the P J
Patterson asdministration.
A
negotiating team is now in Venezuela meeting
with officials there to decide how to proceed.
Paulwell said however, that "the process has
to be led by the Venezuelans" in light of
their plans to diversify energy exports.
/Jamaica Observer
Trinidad
Express
Wednesday, April 11th 2007
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©2007 Trinidad Express. All Rights Reserved.
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