Jamaica announced yesterday the cementing of a deal with Trinidad and Tobago that will see the twin-island republic supplying Jamaica with liquefied natural gas (LNG) over the next 20 years at “agreed prices”.

Jamaica has also implied a reciprocal arrangement to supply Trinidad with bauxite, noting only that the trade deal “should fulfill Trinidad’s longstanding desire to participate” in the bauxite and aluminum sector.

The heads of agreement signed by prime ministers PJ Patterson and Patrick Manning in Port of Spain Tuesday during the 10th Special Meeting of Caricom, will give Jamaica 1.1-million-tonnes of LNG per year.

Jamaica House did not announce the agreed prices.

Patterson will hold a press conference on the Caricom meeting, prior to which there will be a viewing of the signing ceremony.

The two countries have put together a joint development team to, among other things, refine the technical and economic parameters of the project which will include the construction of a re-gasification terminal in Jamaica.

“The joint technical team conducting the feasibility studies has revealed that the terminal could be economically viable under certain defined conditions,” said the release.

Jamaica and T&T have been in discussions on this agreement for more than a year as part of new energy initiatives to deal with the increasing price of oil and its crippling impact on the island’s economy.

In 1998, it cost Jamaica US$316 million to import its oil needs. Last year, the bill reached US$809 million for 27 million barrels of oil. This year, it will be more than US$1 billion.

Additionally the agreement also involves trade in the aluminum sector with Jamaica apparently supplying T&T with bauxite for a US$1 billion smelting plant to be constructed there by Alcoa.

“Central to this investment is the combining of some of Jamalco’s alumina production with Trinidad’s abundant energy resources,” the release added. Jamaica and Alcoa co-own Jamalco.

“It will also provide economic strength to a country which is the third largest market within Caricom for goods manufactured in T&T,” said Patterson.