Jamaica: Simpson-Miller administration to abandon LNG project
“We have long told the government that the introduction of LNG should be private sector-driven, but the People’s National Party administration before it lost the 2007 general election was adamant that it should be state-controlled and the Bruce Golding administration (Jamaica Labor Party government) followed that path,” said a source in the energy sector last week.
“If this was a private sector-led drive, EXMAR would have started construction in 2009 and, by this year or early next year, the country would have liquefied natural gas and lower electricity bills,” added the source who asked not to be named.
Last year, it was first reported that a November 2010 report by a World Bank-recommended team of consultants suggested that the government put on hold its plan to introduce LNG.
Uncertainty With Project
At the time, the consultants stated that there was ambiguity and uncertainties surrounding several aspects of the project which could make it a financial disaster for the Jamaica government.
According to the consultants, a focused economic and financial feasibility study should be completed quickly before a final design specification for the Floating Storage and Regasification Unit and pipeline system.
The consultants also warned that the government could be exposed to great financial risk for future gas purchase.