Chavez saves Jamaica's LNG plan

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dyoll_73</div><div class="ubbcode-body">I'm more in favor of a publicly-owned transportation system, certainly for the Kingston/Portmore/Spanish Town area. I was in high school in the mid to late 80's - mostly during Pearnel Charles's stewardship - and the bus system was chaotic to nightmarish. This was after the demise of J.O.S. "Big man, step roun in a di middle." "Nice lady, ease back an mek da man yah pass yuh." Passengers were jammed tighter than sardines in a can. Do you remember Professor Nuts hit tune: "Inna di bus." You had three people hanging off the door, somtimes dodging light posts or other vehicles.</div></div>

Yes the Comrades have a name for this period. They called it the time of the Middle Paassage.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Okay, so there weren't enough buses to deal with passenger demand. And there was more money to gain from packing the buses to twice their capacities. If transportation was good business, why weren't there more bus operators? Was it government regulations which prevented potential operators? Was it the cost of doing so? Or was there 'scheming' among operators to secure certain areas/communities and prevent the entry of new players? If there were sufficient buses to handle the passenger volume, would those operations remain viable? Would there have to be mergers?</div></div>

Remember the JLP (a credit to them) kept the motor vehicle restriction policy from the 70s in place.
Of course in any restrictive environment there is also greater opportunities for collusion and corruption. Added to that they JLP Government was pushed into this un-solution and never really had a transportation policy that spoke to all the possibilities.

They inherited a broken system and mated it with a flawed solution. All they needed was to take the best parts of the old Jolly Josephs Bus Service, add a decent importation and licensing system, allowing for private ownership only from a short-list of buses to a Franchise. Not one man one buss, which was Pernel’s motto.
The Government could then see to the administration of a unified PP Transportation Policy, which was the case in Jamaica prior to the 72 victory of Menlie.

If you remember you had the bus service owned privately, the trains owned and managed by the State, The Hackney Carriages owned and managed by Taxi Associations and Private vehicles all under the Transportation Ministry.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Ideally, privately owned transportation (profit-making entities) should create a situation where competition leads to better services and prices. Ironically, here, the profit motive led to poor service.

If it were publicly owned, efficiently managed, ran on schedule with nice coaches, air-conditioned, maybe tv screens, security, at an affordable price to passengers, it would be great. Will there be a substantial cost? Of course. But more people who would otherwise be turned off from public transportation, trying to get a deportee as quickly as possible, and those pursuaded to use public transportation for economic and environmental reasons would help to offset the cost. They could even sell advertisements on the sides. A first rate system would attract more middle class people to ride the bus or a rail sytem in the case of communities like Portmore and Spanish Town. People of all walks of life would use such a transportation system. It will require some matching funds from the government, but it is a responsiblity, I think, the government should undertake given the economic benefit of the ability of people to move easily within the corporate area.

I'm not pretending to give an exhaustive analysis of the transportation system. These are just my humble musings. </div></div>

Transportation is still under the Administration of the GOJ, we now have State Owned and operated buses along with Private Transportation solution.
The problems of the 70s and 80s still persist however.
There is a huge body of evidence to show that all the PNP led Administrations of the 70s, 80s, 90 till now, have failed to deal in a positive way, with the country’s problems. From picking up garbage to picking up and transporting people around the Metropolis

This so-called bus service is costing Jamaicans millions per year, yet the buses are rotting shells, operated by careless staff.
As Danny Roberts said when it was time to hire Staff for the JUTC he was going to make sure that he would not be doing anything to cause the PNP to lose the elections. I can’t find the exact quote, but trust me it is another situation where all or most of the persons employed at a State owned Company are Party favourites.
There is no emphasis on ability to serve the paying public.

[Wahalla]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Tuff Gong</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Wahalla</div><div class="ubbcode-body">Interestingly there are a coulple LNG plants that the enviromenatalist are trying to shut down in Californai and New York... On teh Californai plant Hollywood yankees prefers to risk the lives of people with melanin south the border.

Also a few weeks back there was the hulabolo about the cockpit country well not a single sound is made about this enviromenatal potential disasters that a lng plant at port esquivelen... Note a moecule of hydrocarbon is a 4 - 8 times the impact as a green house gas as carbon dioxide.. Guess the enviromentalist prefer to have air condtioners but see us people from the cockpit country as undeserving of the use of our resources...


But what do I know mi come fram deh cockpit country mi nuh ha no sense... </div></div>

Taking the last first I think the environmentalists, as are most folks in Jamaica have been caught flat-footed.
No one quite knows what exactly is LNG, beyond cooking gas.
If cooking is okay, then this LNG must be okay too.

Piping this thing would be the best, but I can't see pipes from Trinidad (is back in, I think they and Venezuela are trying to team up to work this thing so it will help Siesta P. and co.), or Venezuela. So you need these huge ships and I guess they will have to be way offshore, then the stuff gets piped in, because any accident that results in an explosion could mean a whole town.

The next problem is Jamaica is not South Korea, China Japan or any such large producer of goods and services. Jamaica is basically shipping the stuff in to give to two foreign big business companies.
Two companies that have subsidized their operations in Jamaica, by treating the Jamaican citizens with scant regard.

If we use the previous energy deals as a yardstick, then we might conclude that the impact on our private use of energy will be nada.
A few years ago when there were more than two or three persons willing to engage in serious discussion about Jamaica's problems, I raise the issue of our consumption of fossil fuels and how it should be parceled out.

For my suggestions one member did say I would be called a Communist.
I basically said private transport should be last on the list when energy cake is sliced.
The GOJ should restrict the use and importation of private motorcars in favour of Public Transport.

Well that was a while ago when, the energy bill was not so high as a percentage of the overall budget.

</div></div>


The gas is extracted from the well, the associated liquid is dried..(This is a form of light hdrocarbons).. The gas is compressed and cooled and loade onto refirgerated giant ships...The ships then go to the Base unload, this usually as you put it is at a offshore loading point.. it is pipe to storage and temp / pressure raised to reconvert...That is simply technical details...It is only a bigger bang that a gas cylinder.. And you all know that Garnet Silk would have a negative opnion on this subject!

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Wahalla</div><div class="ubbcode-body">The gas is extracted from the well, the associated liquid is dried..(This is a form of light hdrocarbons).. The gas is compressed and cooled and loade onto refirgerated giant ships...The ships then go to the Base unload, this usually as you put it is at a offshore loading point.. it is pipe to storage and temp / pressure raised to reconvert...That is simply technical details</div></div>

Thanks for the Tech Help.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">...It is only a bigger bang that a gas cylinder.. And you all know that Garnet Silk would have a negative opnion on this subject! </div></div>

LOL....not to tek bad ting mek laff but a soh!

[Dr.Dudd]

Re: Chavez saves Jamaica's LNG plan

Wahalla states [i][The gas is compressed and cooled and loade onto refirgerated giant ships/i]
natural gas is not compressed. It is actualld supercooled to th epoint where it becomes liquigied. So in the state it is not under pressure. It is rather super cooled. CNG on the other hand is compressed and cooled .
It i scheaper to compress the gas,but it is highly pressurized in the ships. As a result it is very highly suseptyable to expolsion. LNG o th eother hand will actuall burn, but can be put out. this is why they wan't to use the LNG processing which is more exppensive infrastructure instead of the CNG. Although a Canadian/Jamaican i soffering to build the imnfrastructure to compress,transport and decompress itand

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dr.Dudd</div><div class="ubbcode-body">Wahalla states [i][The gas is compressed and cooled and loade onto refirgerated giant ships/i]
natural gas is not compressed. It is actualld supercooled to th epoint where it becomes liquigied. So in the state it is not under pressure. It is rather super cooled. CNG on the other hand is compressed and cooled .
It i scheaper to compress the gas,but it is highly pressurized in the ships. As a result it is very highly suseptyable to expolsion. LNG o th eother hand will actuall burn, but can be put out. this is why they wan't to use the LNG processing which is more exppensive infrastructure instead of the CNG. Although a Canadian/Jamaican i soffering to build the imnfrastructure to compress,transport and decompress itand </div></div>

Thanks for the clarification.
I didn't understand it to be compressed either.
You are a Canadian/Jamaican?

[johnnycakes]

Re: Chavez saves Jamaica's LNG plan

More on the ethanol deal between the U.S and Brazil:

Militant Brazilian Opposition to Bush-Lula Ethanol Accords
by Isabella Kenfield
and Roger Burbach
March 27, 2007

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São Paulo - During Bush's visit to Brazil thousands of poor, rural members of the international Via Campesina social movement and the Brazilian Movement of the Landless Rural Workers (MST) orchestrated massive, non-violent occupations of multinational agribusiness corporations throughout the country. Nine hundred women occupied the Cevasa ethanol distillery in São Paulo. According to the press statement released by Via Campesina, the protest was against "the proposal by the United States government to benefit large ethanol companies in Brazil, which is not in the interest of the majority of the Brazilian population." Cevasa is the largest producer of sugarcane in Brazil, and last year 63% of its shares were bought by the US-based Cargill corporation. Other occupations included paper mills in Rio Grande do Sul owned by Stora Enso Oyj of Finland, and Votarantin and Aracruz of Brazil. All of these actions were to protest the model of economic growth via industrialized agriculture for export. The social movements and their supporters in civil society assert that while Brazil's agroexport boom may boost Brazil's GDP, it is increasing poverty and marginalization for the rural poor due to land concentration, environmental destruction, unemployment and labor exploitation. According to the Via Campesina press statement, for every 100 hectares planted to sugarcane (from which Brazilian ethanol is produced) only one job is generated, while on a family farm 35 jobs are generated. In Brazil, agribusiness is controlled by a handful of multinational corporations that are usurping more and more Brazilian territory, and expelling more rural poor to the already-swollen urban centers.

The occupations' organizers were careful to highlight that their critique is not of ethanol itself, but with the paradigm being imposed on the industry - large scale, industrialized production for export to the Global North (especially the US), entirely controlled by multinational agribusiness corporations. At a press conference held by the Via Campesina, the MST, the Central Union of Workers (CUT), and the Catholic Church's Pastoral Land Commission (CPT), Bishop Tomás Balduino said, "The pact between Brazil and the United States for the promotion of ethanol is sinister. It's just going to promote death, marginalization, poverty and the destruction of the environment because it defends the interests of large multinationals."

Ethanol is emerging as a way for powerful international capital interests to ally, merge and strengthen. João Pedro Stedile, of the national coordination of the MST and Via Campesina, declared, "Bush came to Brazil as a messenger boy for the multinational companies, the agribusiness companies, the oil companies and the automobile companies that want to control the biofuels." George W.'s brother, Florida state Governor Jeb Bush, was recently appointed to co-chair the Interamerican Ethanol Commission (IEC), which has as its mission to "promote the usage of ethanol in the gasoline pools of the Western Hemisphere." The other co-chairs are Roberto Rodrigues, President of the Superior Council of Agribusiness of Brazil and Luis Alberto Moreno, President of the Inter American Development Bank. Formation of the IEC highlights the alliance being built between US and Brazilian petro and agro capital, and reveals why the current discourse of ethanol as a renewable and sustainable form of energy is cast in neoliberal language that ignores the disastrous impact this corporate model has on society and the environment.

The social movements and their supporters propose that Brazilian ethanol production should be in the hands of small farmers, as part of a diversified agricultural system in which local food production for Brazilians is prioritized, thereby assuring land, livelihoods and jobs for the rural poor. Brazil should focus on producing ethanol for its large internal market - not to sustain US consumption.

Yet despite the widespread protests and opposition by the very segments of civil society that helped bring Lula to power in 2002, and re-elected him for a second term last October, an accord between Brazil and the US has been signed for joint research and cooperation to increase ethanol production, export, and trade as a global commodity. The accord indicates that Lula is cooperating with Bush and agribusiness in order to ensure the industry remains controlled by large capital interests while the Brazilian rural poor sink deeper into poverty. "Today there is no more agrarian reform, there is agribusiness," said Bishop Balduino. "Make no mistake, this accord will only benefit the multinationals and the elite."

Regardless, the voice of dissent articulated through the occupations by the Via Campesina and MST during Bush's visit garnered national and international attention and strengthened the resolve of the social movements. The MST is determined to challenge the Lula government and is stepping up its land occupations, including the seizure of lands that could be used for ethanol production. According to João Pedro Stedile of the MST, "the Lula government is supporting the mode of agricultural production known as agribusiness that allies the landowners with the transnational corporations. This is going to provoke a popular reaction sooner rather than later."

Isabella Kenfield is an Associate of the Center for the Study of the Americas (CENSA) based in Berkeley, California. Currently she is a journalist living in Curitiba, Brazil and has written on social movements, multinational corporations and biofuels.

Roger Burbach is the director of the CENSA. He has written extensively on Latin America, including, "The Pinochet Affair: State Terrorism and Global Justice." He is also the co-author with Jim Tarbell of: "Imperial Overstretch: George W. Bush and the Hubris of Empire."

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan


LNG wrangle provides first test for CSME

Al Edwards
Friday, March 30, 2007

The war of words between Jamaica and Trinidad & Tobago over the twin-island republic's decision not to comply with a 2004 agreement to supply Jamaica with 1.1 million tonnes of liquefied natural gas (LNG) has provided the first real test of just how strong is the CARICOM Single Market and Economy (CSME).

The CSME only came into effect last year and was intended to benefit the people of the region. It was designed to create one large market among the participating member states.
The main objectives of the CSME are: full use of labour and full exploitation of the other factors of production (natural resources and capital); competitive production leading to greater variety and quality of products and services to trade with other countries. It is expected that these objectives will in turn provide improved standards of living and work and sustained economic development.

Trinidad's decision not to go through with the agreement has incurred the wrath of a number of private sector bodies, most notably the Jamaica Manufacturers Association, the Jamaica Chamber of Commerce (JCC) and the Private Sector Organisation of Jamaica (PSOJ).

Indeed the president of the JMA, Doreen Frankson has been most strident in her condemnation of Trinidad. Last week the JMA put out a terse statement, part of which read: "The JMA has taken note of the action of Trinidad and Tobago with regard to the reneging of their government on the LNG deal with Jamaica. The association reiterates that this whole sordid affair has left a bad taste in our mouths and we are very wary of future negotiations and trade relations with the twin- island republic of Trinidad.

"The JMA will not be shackled by any regional agreements to the detriment of our manufacturing sector. We will be strident in our efforts to find the most competitive sources of fuel for the sector and be vociferous in our lobby for our government to grant the necessary waivers should these be third-country sources."

Somewhat less bellicose was the PSOJ's response on this matter: "A canvas of our members has revealed that whatever the facts concerning the actual content and provision of the MOU, there are real concerns regarding the state of trading relations between both countries.

"The fact remains that a large trade gap exists (US$500 million in Trinidad's favour) between Jamaica and Trinidad and there is a perception that by design or default, there are barriers to Jamaican goods and investment. However, the PSOJ feels that the problem between both countries ought to be solved through constructive dialogue and action to remove any barriers to harmonious trade," read a part of the PSOJ's statement on the issue.

One of the major factors serving to undermine the CSME is that its three largest countries, namely Jamaica, Haiti and Guyana have the worst-performing economies. Member countries such as Trinidad & Tobago, Barbados and Eastern Caribbean countries like St Lucia may well be reticent in efforts to subsidise or assist these larger countries at their own expense. This LNG wrangle should put this theory to the test.

In order to allay fears and quell rising tensions, the government of Trinidad & Tobago was compelled to issue a statement in both Jamaica and the twin-island republic, a part of which read: "On the matter of trade between Jamaica and Trinidad & Tobago, although there is a deficit in trade between these two countries, Jamaican products and investments have always been welcomed into Trinidad & Tobago and currently there are no impediments imposed by Trinidad & Tobago which affect trading relations between both countries. The private sectors of both countries have always worked closely to seek their mutual interests and continue to enjoy a productive relationship.

"This is supported by the latest available statistics published by the Central Statistical Office of Trinidad & Tobago, which indicate that imports from Jamaica into Trinidad & Tobago during the first quarter of 2006 increased by 78.4 per cent as compared to the same period in 2005. The latest unofficial figures to August suggest that there continues to be an increasing trend in imports from Jamaica into Trinidad & Tobago."

This statement is more apologetic in tone and does not instill confidence in regional relations. It does not inspire confidence in a single market and economy entity.

A leading Jamaican businessman speaking under condition of anonymity said: "This row comes on the heels of the Mike Lee Chin debacle in Trinidad. In that case, many Jamaicans felt that the Trinidadian media dissed our leading corporate player and no Trinis came to his aid. The whole thing stirred up animosity, fear and loathing between the two countries.
Now, anyway you look at it there has always been rivalry between Jamaica and Trinidad to decide who is the leading force in the English-speaking Caribbean. The CSME was supposed to put paid to all that. Instead, a year on, all the bile and pus is coming to the surface and it is threatening what is already a fragile union. This LNG dispute has taken things to another level. The question is, can a reconciliation be arrived at quickly before the situation becomes untenable?"

Jamaica's Foreign Affairs and Trade Minister Anthony Hylton, one of the best operators in the Cabinet, sought to pour water over this incendiary situation.

"I don't believe that it is necessary for us to be engaged in self-flagellation or, for that matter, to threaten any aspect of the regional integration movement because Trinidad has said it explicitly, that it is prepared to cooperate in this arrangement (with Venezuela) to bring maximum benefit to Jamaica. Trinidad has indicated in a tripartite arrangement to take natural gas and process it for us for a small fee," he is reported to have said in the Jamaican press.

The realities of LNG supply

This dispute centres on an MOU signed in 2004 between Trinidad & Tobago and Jamaica for the oil and gas province to supply Jamaica with 1.150 tonnes of LNG per year for a 20-year period beginning 2008.

In February of this year, the prime minister of Trinidad & Tobago, Patrick Manning, announced that his country could no longer go ahead with this agreement because it has insufficient gas reserves, making another liquefaction unit unviable. Now this liquefaction unit would see the Government of Trinidad & Tobago stumping up a 40 per cent equity stake, with Jamaica coming up with the remainder.
Having pulled out of the deal, Trinidad referred Jamaica to the PetroCaribe deal with Venezuela and offered to help with the processing of gas.

Jamaica's need for affordable energy cannot be overstated. Last year, its oil bill stood at US$133 billion, a 41 per cent increase on the prior year. It is committed to US$1.16 billion expansion of Jamalco's bauxite operations, and its partner, Alcoa, is insisting on a regular supply of affordable energy until the project is completed around 2010. Many business people bemoan high power costs and have said on numerous occasions that it makes doing business in Jamaica, more particularly manufacturing, prohibitive.

Earlier this month, Venezuela's President Hugo Chavez came to Jamaica's aid by promising to supply 150 mcf/d of gas by 2009. It is important to note that this agreement is for gas, not LNG and therein lies the problem, but more of that later.

The Portia Simpson Miller-led government was astute enough not to put all its eggs in one basket. If it had totally relied on Trinidad, Jamaica would be a lame duck. As it stands now this deal with Venezuela gives Jamaica more than adequate gas supplies to meet its needs over the next few years. Indeed it turned out to be a better deal than the Trinidad one in that Jamaica will be getting twice the volume of gas.

Poor Trinidad

Trinidad & Tobago is getting a rough time over its decision not to go through on its deal with Jamaica, and a lot of the heat may be unjust. Why so? Trinidad may well have harboured good intentions to help out its CARICOM partner, but the realities prevent this deal from being a practical one.
Trinidad & Tobago is perhaps the only country in the English-speaking Caribbean with a long-term plan for economic development, rather like Lee Kuan Yew's for Singapore (do read his classic from Third World to First World). The twin-island republic has vowed to become a first-world economy by 2020 and has outlined a vision for that date with destiny. If this is to be made a reality the major drivers of its economy will be energy/petrochemicals, manufacturing and financial services. The lynchpin will, of course, be energy.

Current proven and probable reserves of natural gas in Trinidad & Tobago are estimated at 30 trillion cubic feet (TCF). Energy experts estimate that another 40 TCF of gas reserves may exist and this will keep trains 3 and 4 at Point Fortin busy for some time.

LNG, as a form of energy, has taken off. Trinidad started exporting gas in 1999 and is the US's largest supplier of LNG. It has good liquefaction units. However, Trinidad has just 0.5 per cent of the world's proven reserves and unless big new discoveries are made the Inter-American Development Bank fears that the gas reserves will be fully depleted in 20 years. This notion was also expressed in a study conducted by the IMF in 2006.

Trinidad's former energy minister, Eric A Williams, is less optimistic. He is of the view that Trinidad & Tobago's proven gas reserves can last for 16.33 years at current production rates, and probable reserves for 7.86 years provided no further exploratory drilling is undertaken and no discoveries are made. Oil reserves can continue for another 11.6 years (proven) and 7.57 years (probable).

Venezuela, on the other hand, is sitting on approximately 150 TCF of proven gas reserves (expected to increase to more than 440 tcf following new discoveries), making it the world's eighth largest gas province and the largest in the western hemisphere. Despite this, it has not fully developed its liquefaction plants. Petroleos de Venezuela SA (PDVSA), its state-owned oil and gas company is looking to secure medium and long-term commitments for its vast quantities of gas.

In short, Trinidad has the liquefaction plants, but not vast sums of gas, hence its decision to renege on its agreement with Jamaica. Venezuela has large quantities of gas, but lacks the processing facilities to adequately supply LNG to coveted markets, and therein lies the conundrum.

Can Venezuela deliver on its promise?

Venezuela has promised Jamaica that it will be in a position to supply it with gas by 2009. That may well prove difficult. Venezuela's state-owned oil company PDVSA's president, Rafael Ramirez, said last year, "We have planned our first gas liquefaction plant for 2010. The train will be the first of its kind in Venezuela and will be able to process 1 billion cubic feet of natural gas a day by 2010. Trinidad & Tobago by comparison has four LNG trains." Ramirez also said Venezuela's proven gas reserves of 150 trillion cubic feet could soon expand to 196 TCF.

Venezuela is pushing Brazil, Bolivia and Argentina to help build a continental pipeline to connect Venezuelan and Bolivian reserves with markets in gas-importing countries such as Brazil and Argentina, After two years of talks, the US$20-billion pipeline project still remains in its initial phases. The fact remains that Venezuela has no hot-ticket export markets whereas Trinidad has. Far from launching exports, Venezuela will begin importing gas from Colombia later this year to supply its own market because its current output does not satisfy domestic demand for natural gas.
Venezuela needs processed gas to inject into its aging fields, thus utilising a process that increases reservoir pressure and lifts oil production. Venezuela remains dependent on oil revenues, which account for about 90 per cent of export earnings, more than 50 per cent of the federal budget revenues and around 30 per cent of GDP. Jamaica should bear in mind that Venezuela has experienced many project delays. It is years behind in developing the Mariscal Sucre gas fields (reputed to contain 4 TCF with an investment of US$3 billion). Companies such as Chevron and Statoil have found commercial gas reserves in Venezuela's Platforma Deltana (Blocks 2,3,4 have 6 to 12 TCF of gas). The estimated completion date for these big projects is 2009, and this may be a factor in Chavez's deal with Jamaica. The question is, will he meet that deadline and will his new liquefaction plant deliver accordingly? Chavez has to invite the big international oil companies in to develop these fields and process the gas. To exclude them or do a Bolivia on them will be detrimental to Jamaica's interests.

"I don't think there are going to be gas exports without foreign investments. It's like this US$20-billion Pipeline of the South. It's been two years and nothing has happened, said Miguel Octavio, an analyst at the Caracas-based BBO Servicos oil industry brokerage.

Options for Jamaica

While corporate Jamaica is gnashing its teeth over strained relations with the twin-island republic the announcement that both Trinidad and Venezuela have entered into an agreement to split the gas reserves in Trinidad's Loran block which lies between the two countries, could prove a boon.
The Loran field has about 10 TCF of natural gas. The agreement sees Venezuela entitled to 75 per cent of the reserves with the remaining 25 per cent going to Trinidad. This is a win-win for everybody and here is why.

Trinidad's reserves are declining with the last huge discovery made in 2005. Trinidad will not have heavy expenditure in developing the Loran field but can top up its reserves by 2.5 TCF. There is no doubt it will find a market for gas from this field.

Venezuela wants and needs to find markets, but its liquefaction facilities are underdeveloped. Trinidad already has four processing plants for LNG and this may justify the fifth, tentatively called Train X. Train X could service this field making it easily transportable to Jamaica. Venezuela has the reserves, Trinidad the liquefaction units, making it a mutually beneficial relationship.
This agreement should make Jamaica's energy minister Philip Paulwell sleep a little easier at night. He no longer has to unduly worry about Venezuela's liquefaction capabilities because the South American country can utilise Trinidad's world-class units. Trinidad & Tobago must be commended for having the foresight to produce its gas reserves and to make the most of the LNG market before its competitors could truly appreciate this energy source. Other countries may have far bigger reserves of gas but lack the capability to exploit that advantage and bring LNG to market, indeed the biggest market that is now hungry for LNG. For now fate has conspired against the twin republic in the sense that exploration efforts have not been fruitful and capital costs have escalated. Prior contractual supply commitments have also accounted for the LNG being currently produced, leaving the supply to Jamaica difficult to justify.

Jamaica's Opposition spokesman on telecommunications, mining and energy Clive Mullings has called on the country to look at cheaper fuel options such as compressed gas and forget about this LNG deal with Venezuela. He reasons that electricity costs, special transport ships and trains and long-term contracts will cost the country some US$1 billion.

The chairman of Canadian mutual fund company CI Investments, Raymond Chang, has advocated the use of compressed natural gas and outlined its merits. He believes that a country like Jamaica that doesn't have large economies of scale should not be spending vast sums of money to transform gas into liquid and then spend up to US$500 million turning it back to its natural state.

Rather, the gas can be compressed at source probably in Trinidad and Venezuela, then be placed in a special unit on a ship for delivery to Jamaica. Chang is of the view that Old Harbour would make an ideal docking facility. The ship containing the compressed gas berths, and then a compression-receiving unit attaches to the berthed ship extracting its contents. The natural gas could come from this Loran field and then be compressed and shipped to Jamaica, thus making considerable savings.

Executive Director of the Jamaica Bauxite Institute (JBI) Parris Lyew-Ayee speaking with Caribbean Business Report last year said: "This compressed natural gas shipping method would mean considerable savings for the bauxite industry in Jamaica. I sincerely hope that the relevant authorities give it due consideration."

What is clear is that we should not get into a diplomatic row with our CARICOM partner over the vagaries of energy supply. Brewing mistrust, ill will, resentment and suspicion cannot be allowed to unravel the CSME. Alternative energy utilisation methods should be explored, because sometimes your partner is in no position to oblige you.

http://www.jamaicaobserver.com/magazines...ST_FOR_CSME.asp

[johnnycakes]

Re: Chavez saves Jamaica's LNG plan

good article Tuffy,

Summarized it said that T&T hasn't the reserves it needs to fulfill the 2004 agreement with Jamaica.
Venezuela has huge gas reserves.
Venezuela's deal is for gas but not LNG (assume it is compressed gas.)

T&T has four plants for LNG and one on the way and could process Venezuelan gas into LNG until and if the Venezuelan LNG plant comes on line in 2010. At present Venezuela has no LNG plants

Given the market for LNG It would make sense for the Venezuelans to get a couple of plants up and running and to take over the market for LNG in the region when the T&T fields run out in 16-20 years. That or to buy up the T&T plants when T&T reserves run down and the plants are not needed

The thought expressed in the article by Chang and Lwew-Ayee on the use of compressed gas sounds good for all parties involved.

With the price of energy rising rapidly the poorer countries of the world will be hit hard and I would hope that a good deal will be worked out for Jamaica sooner rather than later especially with the Alcoa power supply deal having two more years to go.


It

[Wahalla]

Re: Chavez saves Jamaica's LNG plan

Nice to see what I said is agreed by someone else..... In more detail and more clarity....

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Venezuela has promised Jamaica that it will be in a position to supply it with gas by 2009. That may well prove difficult. Venezuela's state-owned oil company PDVSA's president, Rafael Ramirez, said last year, "We have planned our first gas liquefaction plant for 2010. The train will be the first of its kind in Venezuela and will be able to process 1 billion cubic feet of natural gas a day by 2010. Trinidad & Tobago by comparison has four LNG trains." Ramirez also said Venezuela's proven gas reserves of 150 trillion cubic feet could soon expand to 196 TCF.

</div></div>

Ah so much for revolutionary zeal... Now who exactly will build these trains ????? And it is now 2007... No way could these be built in anything under than 5 years from start.... The better deal would to stick with TT as they have some spare capacity.. A better idea is if this goes ahead they should look furhter afeild.. Australia has spare capacity.... So does Qatar.. it is simply a case of some complex swap deals that could divert some LNG cargos from Spain to Jamaica in exchange for Qatar or Australia gas...


If this goes ahead Jamaica needs cargos in 2 years.. Venezuela does not havethe capacity...You cannot buy what you cannot deliver..If they go ahead with Venezuela there will be weeping and nashing of teeth and accusations of interferance by the us.Nothing to do with the fact that it takes time to build these trains... Nothing to do with the matter of construction delays..... Nothing do with the fact.. Another question.. Who has a better enviromental profile Venezuela or trinidad buy from the supplier with the better one... You buy cheap you pay later... Compressed Natural Gas... (I call them all LNG..)... But what do I know...

[Dr.Dudd]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Wahalla</div><div class="ubbcode-body">Nice to see what I said is agreed by someone else..... In more detail and more clarity....

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Venezuela has promised Jamaica that it will be in a position to supply it with gas by 2009. That may well prove difficult. Venezuela's state-owned oil company PDVSA's president, Rafael Ramirez, said last year, "We have planned our first gas liquefaction plant for 2010. The train will be the first of its kind in Venezuela and will be able to process 1 billion cubic feet of natural gas a day by 2010. Trinidad & Tobago by comparison has four LNG trains." Ramirez also said Venezuela's proven gas reserves of 150 trillion cubic feet could soon expand to 196 TCF.

</div></div>

Ah so much for revolutionary zeal... Now who exactly will build these trains ????? And it is now 2007... No way could these be built in anything under than 5 years from start.... The better deal would to stick with TT as they have some spare capacity.. A better idea is if this goes ahead they should look furhter afeild.. Australia has spare capacity.... So does Qatar.. it is simply a case of some complex swap deals that could divert some LNG cargos from Spain to Jamaica in exchange for Qatar or Australia gas...


If this goes ahead Jamaica needs cargos in 2 years.. Venezuela does not havethe capacity...You cannot buy what you cannot deliver..If they go ahead with Venezuela there will be weeping and nashing of teeth and accusations of interferance by the us.Nothing to do with the fact that it takes time to build these trains... Nothing to do with the matter of construction delays..... Nothing do with the fact.. Another question.. Who has a better enviromental profile Venezuela or trinidad buy from the supplier with the better one... You buy cheap you pay later... Compressed Natural Gas... (I call them all LNG..)... But what do I know... </div></div>
Venezuala did not agree to supply LNG. it agreed to supply NG. It has th eabillity to supply NG in 2 years,but that will be CNG,not LNG.
therr is a big duifference betewwn the infrastructural need fir CNG than for LNG.
If Trinidad is able to process the Ng into LNG,in time Jamaica will stiil not be ready wuth th eregassifucation facillities. I think Jamaic ais leaning tiwards CNG. the hulabaloo is to create a reason to move the process to Venezuala,and leave Trinidad out of it,bu=y compressing the gas insted of supercooling it. The compression facillities rea easier and cheaper to build. It also has a shorted lead time. So i think that this ois where they are going,but only playing politics,because of trinidad will want to be in the processing aspect of it. the fact is that the new lNG facillities would be owned by Jamaica 60% and Trinidad40%,so if it goes to venezuala we will hear about giving ASM member priority,although they done remember that when they are selling the same NG .

[Wahalla]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> In February of this year, the prime minister of Trinidad & Tobago, Patrick Manning, announced that his country could no longer go ahead with this agreement because it has insufficient gas reserves, making another liquefaction unit unviable. Now this liquefaction unit would see the Government of Trinidad & Tobago stumping up a 40 per cent equity stake, with Jamaica coming up with the remainder.
Having pulled out of the deal, Trinidad referred Jamaica to the PetroCaribe deal with Venezuela and offered to help with the processing of gas</div></div>

That TT does not have the reserves is as close to a lie as any polticians has ever said. They have the spare capacity. The fact of the matter is Mannings reference to Petro Caribe is a blatant hint that he did not want the PC deal to go through.... And he is in a strong postion to strong arm Jamaica to get his deal the way he wants it.... or as is more likely the case TT has got a better deal than Jamaica could offer...

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Wahalla</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> In February of this year, the prime minister of Trinidad & Tobago, Patrick Manning, announced that his country could no longer go ahead with this agreement because it has insufficient gas reserves, making another liquefaction unit unviable. Now this liquefaction unit would see the Government of Trinidad & Tobago stumping up a 40 per cent equity stake, with Jamaica coming up with the remainder.
Having pulled out of the deal, Trinidad referred Jamaica to the PetroCaribe deal with Venezuela and offered to help with the processing of gas</div></div>

That TT does not have the reserves is as close to a lie as any polticians has ever said. They have the spare capacity. The fact of the matter is Mannings reference to Petro Caribe is a blatant hint that he did not want the PC deal to go through.... And he is in a strong postion to strong arm Jamaica to get his deal the way he wants it.... or as is more likely the case TT has got a better deal than Jamaica could offer...

</div></div>

Interesting point, they did mention some other Gas Fields from which they might supply Jamaica in the future.

Do you think they did not want to be seen to support the old in the face of the inevitable new?

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan


<span style="color: #990000">Venezuela pushing to supply compressed natural gas instead of LNG</span>

BY CAMILO THAME
Sunday, April 01, 2007

Venezuela has shown a preference for Compressed Natural Gas (CNG) in its deal to supply Jamaica with the much-needed fuel, which forms a critical component of the island's plan to move towards cheaper energy.

It will, at the same time, create a possible deal saver for the multibillion-dollar investment by alumina giant Alcoa, according to ministry officials.
The deal between Venezuela and Jamaica, according to Energy Minister Phillip Paulwell, also ties into the South American country's plan to build infrastructure that would support its diversification of energy exports.

"The Venezuelans had put compressed natural gas on the table," Paulwell told the Sunday Finance. "They see this as a new dimension for energy export and an opportunity to build infrastructure to support the transport of the gas."
Jamaica would be the first market to which the South American country would export.

Compression is a cheaper alternative to liquification for transporting natural gas, and does not require a regassification plant at the point of delivery.
With the news that the country was moving ahead with a liquefied natural gas (LNG) agreement with Venezuela, Clive Mullings, Opposition spokesman on energy, up to last Thursday made public calls for exploration of cheaper fuel options such as CNG and methanol.

http://www.jamaicaobserver.com/magazines...TEAD_OF_LNG.asp

[johnnycakes]

Re: Chavez saves Jamaica's LNG plan

Tuff Gong,
Jamaica should watch out. You know that you can't trust those socialists in Venezuela.
Stick with T&T.
Now bend over and grab your ankles.

What exactly is it that has T&T so hostile towards Jamaica anyway?

[Tuff Gong]

Re: Chavez saves Jamaica's LNG plan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: johnnycakes</div><div class="ubbcode-body">Tuff Gong,
Jamaica should watch out. You know that you can't trust those socialists in Venezuela.
Stick with T&T.
Now bend over and grab your ankles.

What exactly is it that has T&T so hostile towards Jamaica anyway? </div></div>Uh?

What the hell are you on about?
Do you even read or think before you comment?

It seems as if neither Trinidad nor Venezuela can offer Jamaica anything in the short term. It also looks from all appearances that Trinidad is not hostile to any deals with Venezuela and may in the end be the processor of choice that Venezuela uses, if they decided to supply Jamaica with LNG.