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Opposition concerned about LNG contract

Saturday, July 28, 2012    

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OPPOSITION spokesperson on industry, commerce and energy, Gregory Mair has called on the Government to clarify the issue surrounding the selection of South Korean firm Samsung to develop Jamaica's liquefied natural gas (LNG) infrastructure.

Mair told the House of Representatives Wednesday that he was baffled by the issues surrounding the selection of Samsung, after learning that recently appointed chairman of the Government's LNG Committee, Dr Carlton Davis, was not involved in negotiating of the multibillion-dollar deal, and that Samsung's bid was not the lowest.

He said that while the previous Jamaica Labour Party administration made significant strides in promulgating LNG as a means of reducing the cost of electricity, it was deeply disturbed that the current Government may well be "putting the cart before the horse".

Mair noted, however, that the previous administration took decisive action in "signing off" on LNG as an alternative source of energy, and that he was encouraged that the current Government endorsed the decision and had gone ahead with selecting a contractor to build the liquefied natural gas (LNG) floating storage and regasification terminal.

He suggested that the Government continue with the power generation diversification programme, and start the procurement process of the other planned 100 Mw power plant.

"We cannot minimise the cost of electricity without further diversifying our energy sources. I strongly recommend that coal be the next batch of electricity generation replacement," the Opposition spokesman said.

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