Balford Henry, News EditorENERGY POLICY adviser to the Government, Anthony Hylton, yesterday attributed Trinidad and Tobago's Prime Minister Patrick Manning's denial that he had offered to sell natural gas to Jamaica at concessionary rates, as the result of political cleavage in the twin-island state.
"I attribute it to cleavages and sensitivities and it has political overtones," Hylton told The Gleaner last night. He said that while the issue had obviously become politicised in Port-of-Spain, he did not wish that the same would happen in Kingston.
Mr. Hylton, former Minister of Mining and Energy, was responding to Mr. Manning's statement to the T&T media on Thursday that while his Government was prepared to sell natural gas to Jamaica, it would have to be sold at world market prices.
The T&T Prime Minister's statement totally contradicted statements made by Mr. Hylton to the local media last week Thursday, suggesting that T&T was willing to provide Jamaica with liquified natural gas (LNG)on concessionary terms.
Mr. Hylton told the press briefing at Jamaica House that Trinidad and Tobago had offered to finance 50 per cent of the cost of a feasibility project aimed at developing Jamaica's conversion to the large-scale use of natural gas and that, if the project is successful, T&T would supply Jamaica with LNG at significantly reduced prices.
Mr. Hylton said that the decision by the Trinidad and Tobago Government to foot 50 per cent of the bill was a prelude to possible equity participation in the project. "We have already accepted this very meaningful offer," he added.
But a Caribbean Media Corporation (CMC) report yesterday out of Trinidad and Tobago said that Prime Minister Manning told reporters at his weekly Cabinet meeting that, "many CARICOM states did not understand the intricacies of his country's energy sector" and, as a result, "were making assumptions that were not based on fact."
Manning had indicated at a recent CARICOM Heads of Government Inter-sessional meeting that his administration's plans for constructing a pipeline to provide natural gas across the region was still on the table for discussion.
The CMC report added: "Jamaica says it would be constructing a LNG-receiving terminal by 2006 and senior Jamaican officials said they hoped Port-of-Spain would provide concessions to its regional neighbour.
"But Manning told reporters that while Port of Spain was willing to sell gas to Jamaica, 'there were 'certain realities which this country had to face.' He said many of Trinidad and Tobago's energy contracts were production sharing ones.
Manning said that this meant the Government collects 40 per cent of the profits after costs were removed and that the profits were based on the international gas prices minus costs.
"He said Trinidad and Tobago used the money received "for the construction of roads, schools and for general development of Trinidad and Tobago."
Manning had earlier this month decided against providing CARICOM countries with a cheaper oil price in the event of a war in the Middle East involving Iraq and United States forces.
"Even with the best will in the world, the proposition is difficult to entertain, given that Trinidad and Tobago imports 50 per cent of the crude that it refines and is also subjected like everyone else to the vagaries created by the escalating conflict," he told fellow Caribbean leaders at the recent Inter-Sessional Summit.
Mr. Hylton said last night that this was an "unfortunate statement," as Jamaica understood very well the situation.
He said that he was standing by his statement regarding the offer of concessionary rates for natural gas from T&T as this was based on discussions with senior ministry officials there as well as the report of a task force studying "the whole natural gas pricing issue."
"I am in no way backing off what I said. I stand by my statement which is based on the discussions I had and the broad agreements reached on the pricing of natural gas," he said.
