PSOJ wants LNG players to participate in operation

The Private Sector Organisation of Jamaica (PSOJ) is recommending the establishment of a mechanism to provide key private sector players a role in the establishment of the Liquefied Natural Gas (LNG) infrastructure.

This is essential in an effort to keep the costs low and not subject solely to monopoly interests, the PSOJ said in a release.

The PSOJ’s recommendation followed Tuesday’s announcement by Energy Minister Phillip Paulwell that the government would remove itself from the process of fuel source selection and allow the electricity and alumina producers to procure supplies.

“The PSOJ wholeheartedly agrees with the Minister that the high cost of electricity is one of the most important impediments to economic growth and job creation facing Jamaica today,” the release said.

However, it said that while the PSOJ recognised the efforts made by the administration to date, “the private sector still has concerns about Jamaica’s energy future as there remains some uncertainty.”

The organisation also agreed with the government that this effort should be driven by the private sector and the needs of industry.

“However, the private sector is concerned about the lack of clarity in the process by which the JPS (Jamaica Public Service Company) will supply LNG and the PSOJ believes there is the need for greater transparency,” it said.

The release added that there are also concerns that not all stakeholders involved in the process were kept abreast of developments.
“In particular, the PSOJ is concerned that major players in the bauxite alumina industry have not been fully briefed on the details of both the results of the previous bid process and the new way forward outlined by the Minister,” the release said.

“Therefore, the PSOJ is recommending the establishment of a mechanism whereby key private sector players will have a role to play in the establishment of the LNG infrastructure, so that the resulting costs will be kept low and not subject solely to monopoly interests,” the organisation said.

The private sector body also call on the Minister to make it explicitly clear that any pricing arrangements under the new plan will be fully regulated by the Office of Utilities Regulation (OUR) and arrived at in a transparent and competitive manner.

business@gleanerjm.com