THE Government says that it is withdrawing from the fuel source selection process to focus on creating a legislative and regulatory energy framework this fiscal year.

However, Minister of Science, Technology, Energy and Mining Phillip Paulwell told the House of Representative yesterday that the Government has not abandoned plans to introduce Liquefied Natural Gas (LNG) into Jamaica by 2015.

He said that plans are well advanced for the introduction of LNG, but given the result of the bidding process, the Government has determined that it has taken the matter as far as it can go. He added that it was also the Government's view that private electricity and alumina producers would have much more flexibility in procuring fuel supplies and use their international leverage to get the best possible prices.

However, "as a Government, we (will) continue to support and facilitate private investors as we work together to achieve the best possible solutions," Paulwell said.

He stated that the LNG committee will be immediately disbanded and replaced with a body that includes members of the Jamaica Energy Council, the Office of Utilities and his ministry.

"With the termination of the work of the LNG steering committee, there will be no need to access the remaining US$2.6 million that was originally budgeted," he explained in reference to the fact that the Government has already spent US$2.8 million of the US$5.4-million proposed budget for the LNG project.