Jamaica/Trinidad to Sign Heads of Agreement

Prime Minister P.J. Patterson will initial a Heads of Agreement for the provision of liquefied natural gas (LNG) with Prime Minister Patrick Manning of Trinidad and Tobago in Port of Spain on Saturday (Nov. 6). The agreement is expected to lead to a competitive and predictable long-term supply of LNG on an agreed base pricing and escalation basis.
Mr. Patterson who leaves the island for Trinidad on Friday (Nov. 5), made the disclosure during a nationwide broadcast on Thursday (Nov. 4). He said the Heads of Agreement was just one of the benefits that will flow from the integration of regional economies when the Caribbean Single Market and Economy (CSME) comes into being.
Pointing to the need for alternative sources of energy and energy conservation, Prime Minister Patterson said a number of factors would have to be taken into consideration as the country develops its energy policy. He said this would include the search for sources of fuel that can be obtained at reasonable and predictable prices over the medium to long-term, as well as improved efficiency in key areas such as the generation, transmission and distribution of electricity. Jamaica/Trinidad to sign Heads of Agreement.2Mr. Patterson said new strategies must also be developed to bring about substantial savings in the area of energy consumption for transportation purposes. Among the strategies being considered are the inclusion of incentives in the proposed tax reform programme to encourage a shift to diesel and hy-brid electric vehicles, as well as the diversification of the country’s fuel mix to include 5 to 10 per cent ethanol.
“The improved road system which is now well advanced will also make a major contribution,” the Prime Minister added.
The Agreement between Jamaica and Trinidad follows months of negotiation and comes against the background of the need for Jamaica to reduce its energy bill and increase energy conservation.
One considerable advantage of LNG is that it allows for the introduction of electricity generation plants at vastly increased levels of efficiency, which are more environmentally friendly than oil-fired plants now in use. The Prime Minister noted that LNG also provides energy for other uses such as food processing and light manufacturing. He said the supply of LNG would make it possible for the investment in the expansion of the bauxite plant at JAMALCO Clarendon to be combined with increased power generation for the public supply of electricity for homes and businesses, with efficiency gains in both.
This Mr. Patterson said, represents a further stage in the major investment and economic expansion that have been achieved as a direct result of the modern infrastructure in which the government has invested.