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Letters
October 26, 2010

Can we afford LNG?

Dear Editor,

It is widely accepted that a major contributor to the global climate change is the presence of greenhouse gases, one of which (carbon dioxide) has received particular attention. To this end there are global efforts (for example, the Copenhagen summit), to reduce its concentration. Steps include reducing its

production, increasing the net output of products, new processes, procedures, etc, and in adopting clean energy technology.

Of all the fossil fuels, natural gas (LNG) is stated to be the cleanest from both the

quantity of carbon dioxide produced upon combustion as well as having lesser quantities of gaseous and other impurities (for example, sulphur oxides, etc). In several countries, it is therefore seen as a vital link (or stepping stone) to achieving a clean environment (oil/coal to LNG to complete renewable energy). This

is most definitely a worthy ideal and one that will benefit current and future generations, but it must be weighed in light of other factors, one of which is discussed below.

For Jamaica to develop we must cultivate a productive base and for that to occur we must create the necessary economic environment to attract needed investors. The cost of energy is a critical component. The question that must be discussed ad nauseam is whether LNG will result in an energy cost that makes us competitive. This question, though simple, in itself implies several factors. It suggests that there is an

economic model that is being piloted for which the expected manufacturing and product base(s) that are expected to be generated will be economically feasible with LNG as the energy input.

In addition, as the world will not see Jamaica progress without trying to copy our effective model, we will need an energy resource that when coupled with all other cost factors will provide an effective shield against competitors. The critical question is whether LNG will achieve that for us. Saying that we will save money

is not sufficient. It must be tied to this model to demonstrate competitiveness. This should be presented to the country to ensure viability and buy-in. Finally, we must compare ourselves with our competitors to ensure lasting competitiveness. This is also a necessity. What energy sources are they using? What is their timeline for embracing clean technologies and why? What impact will this have on our model and timeline? Competitive savings is what we must be aiming for. Can we afford LNG?

J Smith

Kingston

Concernedenergy@gmail.com

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