Jamaica committed to developing LNG as energy source

The Jamaican government is committed to developing LNG as an energy source on the island, a special adviser to Jamaican Prime Minister Bruce Golding said Thursday.

"We are confident that LNG, done right, is a viable choice and that is what we are confident of delivering in a timely manner," said Chris Zacca, chairman of the government's new LNG steering committee.

Zacca was responding to reports that a proposed LNG project could face delays in the wake of an investigation -- launched in 2010 -- into alleged bid rigging in the tender to install a floating regasification unit off the country's southern coast.

Zacca dismissed concerns the project could be delayed by as much as two years following upheaval amongst the project team.

In December, the government appointed a steering committee to advise Golding on project implementation.

Golding took control from the Jamaican energy ministry and state-owned Petroleum Corp. of Jamaica, which conducted the tender that resulted in the selection of a consortium led by Belgium's Exmar.

In June 2010, Jamaica's anti-corruption Office of the Contractor-General raided offices of the ministry and Petrojam as part of its investigation of the tender. The results of the probe have not been announced.

The Office of the Prime Minister recently commissioned a consultant to conduct a report on the LNG project, but the report has not been released.

Zacca declined to respond to questions about government plans for the project or discuss whether it should be put on hold and the tender redone.

"Our job … is to advise the Prime Minister and Cabinet on the delivery of a successful LNG project in a manner that maximizes the benefits to all energy consumers in the country," he said.

Zacca also rebuffed suggestions that the government may be liable for future gas purchase obligations because it has yet to secure offtake deals for the gas from electricity monopoly Jamaica Public Service Co. and bauxite company Jamalco.

"As we continue to engage potential gas offtakers, the government of Jamaica is not exposed in any way contractually or financially to future gas purchases," he said.

--Laura Brooks, newsdesk@platts.com