Dear Editor,

The decision to use Liquefied Natural Gas will not only affect the current generation, but also every future one. We are living at a cut-throat pace globally with times of reprieve occurring mainly when global catastrophes happen, like the current recession. In addition, there are several competing forces, including economic (for example, WTO legislation), environmental (for example, carbon credits regulations), nationalistic and regional affecting us — like the EU, Caricom, etc.

As a nation, therefore, it is necessary that we carefully tread when certain decisions that have severe and long-term repercussions, whether good or bad, are being taken. LNG is one such decision.

LNG exists globally in large amounts. Much of the reserves are untapped and unaccounted for, but for that which is known there are supplies to last well into the future. However, though being plentiful, LNGs supplies are largely isolated, especially when compared with other energy resources. Russia, North America and the Middle East — mainly Iran and Qatar — are estimated to contain 70 per cent of global supplies. Concurrently, there are three associated regional gas markets: Europe, North America and Asia. In addition, LNG is unique in that the largest cost component to the end user is in the transportation of the gas to its final destination, not in its extraction.

This point should elicit concern, for what this does is automatically tie our product cost to the price of oil — in the shipping cost component. To reach any destination, the gas must be transported either in its gaseous state, as done in America and much of Europe, or must first be liquefied, then shipped, undergo regasification at its destination then piped to the end user — this latter supply arrangement is applicable to Jamaica. Ships are powered by oil.

Additionally, because there are relatively few suppliers and a limited global trading market, we will be inextricably linked to the country from whom we obtain the LNG. This also should elicit discussions. What about changes of government, strikes, social upheavals, coups, etc, in the country of origin? With other commodities there is a much shorter time frame for crisis solutions.

With LNG the new supplier will need time to develop infrastructure to facilitate a new market to serve Jamaica, in this case. That time frame could possibly leave us in shambles.

J Smith

Kingston 8

Concerned energy@gmail.com