The Government‘s handling of the multi-billion dollar Liquefied Natural Gas, LNG, project is to be probed by Parliament’s Public Administration and Appropriations Committee, PAAC.
This follows a recent newspaper report that the Government has
FOLLOWING THE revocation of an exploration licence, which was granted to Rainville Energy Corp, a subsidiary of Sagres Energy, to drill for oil, Energy Minister Phillip Paulwell has signalled that another company that was granted a licence could have it cancelled if they don’t begin drilling soon.
The Petroleum Corporation of Jamaica yesterday said the failure of Rainville to meet its financial obligations has resulted in the revocation.
Under the agreement, which dates back to 2006, Rainville should have secured the necessary funding for the second phase of the programme which began in May 2012.
Among other things, this phase involved the drilling of an exploratory well by November 2013.
Paulwell told
Opposition Spokesman for Industry, Commerce and Energy, Gregory Mair says he’s seriously concerned with reports that the government has abandoned plans to introduce Liquefied Natural Gas.
In a statement today, Mr. Mair said Energy Minister, Phillip Paulwell needs to address the country forthwith on what he calls a disturbing development and state clearly the government
Opposition Spokesman for Industry, Commerce and Energy, Gregory Mair says he’s seriously concerned with reports that the government has abandoned plans to introduce Liquefied Natural Gas.
In a statement today, Mr. Mair said Energy Minister, Phillip Paulwell needs to address the country forthwith on what he calls a disturbing development and state clearly the government
There’s a warning that Jamaica could suffer some fallout in the international investment community arising from the Government’s decision to change plans for the implementation of the multi-billion dollar liquefied natural gas, LNG project.
According to Opposition Spokesman on Energy, Gregory Mair, the country’s image will be tarnished in light of the fact that an international company had been selected for the project.
In July, Korean conglomerate Samsung Corporation was declared the preferred bidder for the development and operation of
Nedburn Thaffe, Gleaner Writer
Plans by the Government to scrap the liquefied natural gas (LNG) project, which was part of measures to diversify the country’s energy mix and cut electricity cost, are threatening to throw the business sector into disarray.
Yesterday, president of the Private Sector Organisation of Jamaica (PSOJ), Christopher Zacca, noting that the introduction of LNG was backed by his organisation, said there was now “concern” over the report carried in The Sunday Gleaner yesterday.
As such, Zacca said, he would be calling a meeting of the PSOJ energy committee in short order to have discussions on the matter.
The Sunday Gleaner indicated that Energy Minister Phillip Paulwell is scheduled to announce next month the intention of the Government to do away with the project.
Gleaner sources say the Government is likely to revert to plans B and C, which will see the Jamaica Public Service Company (JPS) being allowed to establish the LNG infrastructure and source the gas for the multibillion-dollar plant it plans to construct in Old Harbour, St Catherine.
Trouble for sector
Opposition Spokesperson on Energy Gregory Mair, when contacted yesterday, said the report spells trouble for the country’s energy sector.
“This matter that we have been stuck with heavy fuel oil is not good news at all,” he said before chiding the Government for its handling of the project.
“I don’t know what went wrong but the bottom line is that it was going to be the private sector that was going to be funding the entire LNG project and I think they just messed up the whole thing,” Mair said.
In the meantime, yesterday, president and CEO of JPS, Kelly Tomblin, said her company intends to go ahead with plans to build its multibillion-dollar plant in Old Harbour, St Catherine, but added that the shape of the development would be dependent on how the Government now intends to participate in the project.
She added that she was looking forward to meeting with Paulwell in the coming week to discuss the way forward.
The Gleaner understands that Paulwell is currently off the island and is expected to return tomorrow.
nedburn.thaffe@gleanerjm.com
Read more: http://jamaica-gleaner.com/gleaner/20120924/lead/lead6.html
KINGSTON, Jamaica – Opposition Spokesman for Industry, Commerce and Energy, Gregory Mair, is blasting Government’s handling of the energy sector.
In a release to the media Mair said inaction on 10 consecutive weeks of increasing gas prices, high electricity rates and Petrojam
Petrojam is facing increased pressure to make public its formula for calculating the price of petroleum products.
The Micro, Small and Medium Sized Enterprise, MSME Alliance, says for many of its members, especially taxi drivers, the impact has been devastating and concerns are mounting in the face of persistent questions about the pricing mechanism used by Petrojam.
Their call follows several from Opposition Spokesman on Energy, Gregory Mair who has been strident in his criticisms of the pricing mechanism, labelling it as deeply flawed.
However, despite calls for Petrojam to open up to public scrutiny it has steadfastly remained silent.
President of the Jamaica Solar Energy Association and member of the MSME Alliance, Roger Chang says the information should be made available to dispell doubts that the public is being cheated.
Mr. Chang says he’s now awaiting the outcome of a request for the pricing formula through the Access to Information Act.
He told our newscentre that he decided to go that route after failing to get a satisfactory response from Petrojam’s General Manager, Winston Watson:
Mr. Chang says the MSME Alliance is also questioning whether the concerns raised in two audit reports of Petrojam in 2008 and 2009 have been addressed.
He says among other things the audits said Petrojam’s pricing mechanism is being administered with limited oversight.
The audit pointed out that with Petrojam being one of the market participants it was improper for it to administer the pricing system.
Mr. Chang says the reports also outline a lack of transparency and inefficiencies at the refinery which results in the cost being trickled down to the consumer at the pumps and in their electricity bills.
Yesterday it was announced that motorists would have to pay more for petrol for a ninth straight week as Petrojam hiked prices to just below record levels.
http://rjrnewsonline.com/news/local/petrojam-pressured-over-petroleum-pricing-formula
The Petrojam oil refinery at Marcus Garvey Drive in Kingston – File
In the wake of concerns about the rising cost of petrol, Petrojam, the oil refinery jointly owned by the Jamaican government and
Opposition Spokesman on Energy, Gregory Mair, wants an independent audit of