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LNG regulations coming soon, says energy ministry
PAULWELL... I will say for the eighth, consecutive year that it was never intended by the PNP Administration to introduce LNG with a sole provider
News
Alecia Smith  
October 3, 2024

LNG regulations coming soon, says energy ministry

REGULATIONS for the use of liquefied natural gas (LNG) in Jamaica are expected to come to fruition under new legislation, the Ministry of Science, Energy, Telecommunications and Transport has confirmed.

The regulations, which were drafted in 2015, will now be part of the Petroleum Downstream Bill, the ministry said.

At Tuesday’s sitting of the joint select committee reviewing the Electricity Act 2015, senior legal officer in the ministry Kadene Campbell said Cabinet has given approval for provisions related to the regulation of LNG to form part of the Petroleum Downstream Bill, which is to repeal all current laws relating to petroleum, quality control, storage,and landing.

“The provisions related to LNG are in the Downstream Bill that we are now negotiating. The Bill is in the drafting stage,” Campbell said in response to Opposition spokesperson on energy and mining Phillip Paulwell’s query for an update on the LNG regulations.

Paulwell explained that about two years ago when the joint committee started, he had reminded Energy Minister Daryl Vaz that there was no regime for the proper regulation of LNG and the use of natural gas as a fuel source.

“I had mentioned that those drafts were in place and after quite some time, he was able to confirm that, I think two meetings ago. What I would like to know is have those drafts been dusted off and ready now for implementation. And I would think that it will be timely for that to coincide with the finality of the work of this committee,” he said.

Another Opposition member of the committee, Anthony Hylton, said that when he was minister of energy, he championed the introduction of LNG, but he lamented that it was introduced with no regulation “and it is as clear as mud what is actually happening in that sector and how that is contributing to what we intended to be an efficient generation it is not so”.

Paulwell had previously raised the matter in the House of Representatives during his contribution to the 2024/25 Sectoral Debate in April.

Paulwell said then that the introduction of LNG was a major achievement in Jamaica’s energy diversification objective.

He noted that just about 60 per cent of electricity is now generated using natural gas, but this has not resulted in lower prices.

“I will say for the eighth consecutive year that it was never intended by the PNP Administration to introduce LNG with a sole provider. Our intention was to promulgate regulations to enable transparent and clear rules that would encourage competition in the provision of this fuel to Jamaica,” he said.

“Where are they nine years later? Again, I call for these regulations to be tabled forthwith and for them to apply not only to the generation of electricity but also to their use in transportation and other areas. This is a clear path towards the lowering of energy costs in Jamaica,” he said.

 

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