EDITORIAL - The energy task force has to get cracking

We do not know as yet what is to be made of Prime Minister Bruce Golding's shunting of James Robertson, the energy minister, from the leadership of the Government's liquefied natural gas (LNG) conversion project, or why Mr Robertson's right-hand man on the subject, Stephen Wedderburn, found no place on the task force appointed by Mr Golding to spearhead the programme.

We, however, take the prime minister at his word, transmitted through others, that at this stage, nearing its implementation, he assumed leadership of the project to ensure inter-ministerial and multi-agency buy-in and to prevent logjams.

The fact, though, is that although there has been a broad commitment by the Government to an energy policy that has the use of natural gas at its core, there is still much work to be done for this to happen.

In so far as we are aware, there is, apart from that broad commitment, only one other substantial undertaking: the naming of a consortium, led by EXMAR Corporation and including a Jamaican-controlled outfit called Caribbean LNG, as the Government's preferred bidders for the establishment and management of a floating LNG storage and regasification facility and of pipelines to deliver natural gas to users.

Things, it appears, have not got much further. EXMAR and the Government cannot proceed to a definitive agreement unless it is clear who will use the gas. So far, nobody has committed - none of the country's bauxite/alumina refineries, or the major light and power company, Jamaica Public Service (JPS).

Moreover, the Government's invitation to tender for new power facilities, and the analysis thereof, is still a work in progress. So, too, is a probe by the contractor general into whether the naming of EXMAR as the preferred bidder was above board and legitimate.

The bottom line, therefore, is that Mr Golding's task force, which appears to be short on specific skills on energy matters, has substantial work to do, with little time in which to do it if the administration is keen on transforming the Jamaican economy.

Review

First, the task force has to determine if and whether Jamaica should remain committed to LNG, or some other energy source, such as coal. In that regard, it has to quickly review the work done by the Robertson-Wedderburn group to satisfy itself that the process delivered the best and most practicable result.

Next, they must show a clear and quick path that affords an energy future substantially cheaper than what exists for Jamaica today.

It is agreed that Jamaica cannot compete effectively in the global economy with an energy cost of US$0.29 per kilowatt hour, which is substantially higher than what exists for most of its regional competitors.

Part of the reason for our high energy cost is the mostly old, inefficient generating equipment operated by JPS. This company has refrained from committing itself to retooling because of disagreement over the Government's approach to arriving at an energy policy and its own place in the arrangement. This, therefore, has to be among the issues addressed by the PM's task force.

But to repeat: their time is short. Whatever else may be the complaints, that is one thing Mr Robertson understood when he brought the LNG project to where it is now stalled.

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