Venezuela pushing to supply compressed natural gas instead of LNG - JAMAICAOBSERVER.COM

Venezuela pushing to supply compressed natural gas instead of LNG -

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.
Paulwell's ministry saw it fit to respond in a press statement recently, by stating that "the agreement makes provision for the supply of natural gas", but that the ministry was "now in the process of determining how best to transport the gas, bearing in mind required infrastructure to support such supplies".
Up to the middle of last year, government officials were still mulling over whether to proceed with a US$350-million regassification facility to be located in Old Harbour, St Catherine. But the high cost led them to seek alternative means, such as a floating barge or CNG.
Either way, it was important to establish the source of gas that would ensure that American alumina producers, Alcoa, would proceed with its US$1.6-billion investment in the island, which was largely predicated on the availability of cheaper energy, particularly in light of Trinidad and Tobago's announcement that it had insufficient natural gas to supply Jamaica as agreed two years before with the P J Patterson asdministration.
A negotiating team is now in Venezuela meeting with officials there to decide how to proceed. Paulwell said however, that "the process has to be led by the Venezuelans" in light of their plans to diversify energy exports.