LNG talks between TT and Jamaica continuing apace

Jamaica’s government minister Phillip Paulwell who has responsibilities for Energy said the last limb of the discussion now centres around the date whereby the gas will be available to Jamaica.

" What we now need is to be assured of the time line for delivery and receipt. Once we get that, then all other things will fall into place. I think we are working on a fast time table," Paulwell said last week at his office. Jamaica has targeted mid-2006 for the start of construction on a US$250 million terminal and storage facility at the proposed Port Esquivel with a 2008 commissioning date.This would allow for the receipt and storage of the gas in its cold liquid form at Port Esquivel, where it would be regasified and distributed through pipelines to end users.

Trinidad and Tobago and Jamaica over a year ago signed a Memorandum of Understanding (MOU) for the supply of LNG at undisclosed agreed prices for 20 years. A joint development team was established to refine the technical and economic parameters of the project.

Jamaica which has a US$1 billion oil import bill in 2005 is seeking to reduce dependency on fuel oil for the production of electricity by the use of alternatives such as LNG, wind, water and solar energy among others.

Meanwhile Jamaica is moving into possible oil and gas exploration after the Petroleum Corporation of Jamaica opened a Licensing Round for exploration last year. Although no commercial reserves of oil and gas have been found in Jamaican territory, oil and gas shows occurred in ten wells. Last year exploration companies were invited to bid on one or more of 24 blocks being offered: four onshore and 20 offshore. Paulwell said private negotiations were also taking place with companies which did not take part in the bid round.

" The bid round is not attractive unless you have evidence of gushing oil. Our data reveals that there is a high level of prospectivity in and around Jamaica, that there is a large system somewhere just to find," said Paulwell. According to state-owned Petroleum Corporation of Jamaica, current geological data from the Jamaican territory have suggested the potential for commercial quantities of oil and gas to be found in the Walton Basin, an area of relatively deeper water located between Jamaica and the Pedro Bank.

" The Pedro Bank is also prospective. It is thought that onshore finds of oil or gas may also be commercially significant," the state company said. Exploration activities in Jamaica have occurred in two phases.The earlier phase spanned 1955 - 1973, done by private companies, and more recently 1978 - 1982 by the state-owned Petroleum Corporation of Jamaica.

Between 1955 and 1973, seven exploratory wells were drilled, one offshore and six onshore.

Immediately following on the establishment of the state-owned Petroleum Corporation in 1979, the momentum of activity increased with the drilling of three wells onshore and one offshore during the period 1980-1981.