President Jagdeo receives 2010 Champion of the Earth Award from UNEP

Lord Nicholas Stern describes President as “one of the world’s foremost heads of government in advocating for a global low carbon future” His Excellency, President Bharrat Jagdeo, has been awarded the 2010 Champions of the Earth Award by the United Nations Environmental Programme (UNEP). President Jagdeo received the prestigious award for his outstanding international leadership on combating climate change and his pioneering model on low carbon economic development. The Award was presented to the President at the 4th Annual Business for Environment (B4E) Global Summit and UNEP Champions of the Earth gala awards event in Seoul, South Korea yesterday.

In presenting the prestigious award, UN Under-Secretary-General and UN Environmental Programme Executive Director Achim Steiner, stated that, “President Jagdeo is a powerful advocate of the need to conserve and more intelligently manage the planet’s natural and nature-based assets. He has recognized more than most the multiple Green Economy benefits of forests in terms of combating climate change, (and) also in terms of development; employment; improved water supplies and the conservation of biodiversity.”

Immediate congratulations were sent by Lord Nicholas Stern, widely credited with changing global understanding of the economic impact of climate change.
Lord Stern said: “I warmly congratulate President Jagdeo, with whom I serve on the UN Secretary General's Advisory Group for Climate Finance. He has been one of the world's foremost heads of government in advocating for a global low carbon future, and his tireless advocacy, particularly on the urgent need to protect the world's forests, has made a tremendous contribution to the international climate change agenda. I know that he shares my view that a future high carbon world is one of disaster, and we must re-double our international efforts to build a prosperous, low carbon future."

President Bharrat Jagdeo receives UN environment award yesterday.

According to the UNEP, the award is given to ‘people and organizations truly distinguished’ when it comes to making a real difference in protecting the planet earth’. UNEP’s Champions of the Earth Awards honours the ‘best and brightest as they strive to take action for our planet through their visionary thinking, unwavering dedication and committed action towards the sustainable use of the planet’s resources for global green growth’.

2004 Nobel Peace Prize Winner Wangari Maathai said: "I would like to congratulate President Jagdeo on becoming a 'Champion of the Earth'. His tireless work to keep the world's attention on the importance of saving our forests has been an inspiration to many across the world. His leadership continues to remind us that progress is possible and that we can save the world's forests while at the same time fostering prosperity and improving the lives of our people". Professor Maathai won the Nobel Peace Prize for her contribution to sustainable development, democracy and peace. She was the first African woman to win the prize.
The Champions of the Earth Award for President Jagdeo comes on the heels of other significant recognition of President Jagdeo’s pioneering and aggressive policies on sustainable economic growth through Guyana’s Low Carbon Development Strategy (LCDS).

The strategy is premised on the concept of Avoided Deforestation which allows Guyana’s 15 million hectares of rainforest to serve as a carbon sink, a process that is critical to combating global climate change. Deforestation accounts for about 20% of human-generated greenhouse emissions. This year, Guyana will receive payments for avoided greenhouse gas emissions, and will soon start investing those payments in a new low carbon economy.

This will remove virtually the entire energy sector from fossil fuel dependence, and will catalyse new economic sectors to provide Guyanese with valuable economic alternatives that do not put pressure on Guyana’s forests. To support the LCDS, the Governments of Guyana and Norway have agreed a ground-breaking model where Norway will pay US$250 million towards Guyana’s forest climate services between now and 2015. This is the second largest deal of its kind in the world.
In 2008 President Jagdeo was named by TIME Magazine as a Hero of the Environment.

The President is also currently serving on a UN High Level Advisory Panel on Climate Change Financing. UN Secretary General Ban Ki-moon appointed President Jagdeo to the High Level Panel along with British Prime Minister Gordon Brown, Ethiopian Prime Minister Meles Zenawi, and the Prime Minister of Norway, Jens Stoltenberg.

Past winners of the Champions of the Earth Award include Al Gore, Thabo Mbeki, Mikhail Gorbachev; Prince Albert II of Monaco; Prince Hassan Bin Talal of Jordon, the King of Bhutan; and Eric Solheim, Minister of the Environment and International Development (Norway).

The UNEP Champions of the Earth Award is the highest environmental award given by the United Nations.

President Jagdeo has stated that his US$40,000 prize money will be donated to Amerindian communities in Guyana.

Sources:
http://www.lcds.gov.gy/faqs/182-president-jagdeo-receives-2010-champion-of-the-earth-award-from-unep.html

http://www.guyanachronicleonline.com/site/index.php?option=com_content&view=article&id=12422:president-jagdeo-receives-2010-champion-of-the-earth-award-from-unep&catid=4:top-story&Itemid=8

SOCIAL NETWORK FOR ENERGY EFFICIENCY GOES LIVE ON EARTH DAY 2010 AT WELECTRICITY.COM
April 22, 2010

New low-carbon, web-based service uses behavioral factors to nudge householders to use less electricity
KINGSTOWN, ST VINCENT & THE GRENADINES, April 22, 2010
Welectricity, a free web application for tracking and reducing household electricity consumption, has been launched by startup Welectricity Inc on April 22nd 2010, the 40th anniversary of Earth Day.
Founder Herbert A (Haz) Samuel, a Caribbean energy consultant, notes that households typically consume a large proportion of total electricity in any country: “So, if we can find a way to have households consistently reduce their energy consumption, even on a small individual basis, collectively that amounts to a large saving on a country basis.”

The idea for Welectricity arose out of Samuel’s observation of a paradox first noted by a nineteenth-century British economist named Jevons. “The ongoing improvements in technical energy efficiency of the devices we use… have not resulted in a commensurate reduction in our energy consumption. In fact, in some cases the opposite has happened” and we are “using more energy than ever before” Samuel points out.

This situation is explained by the rebound effect; an economic theory which says that if the cost of a resource is reduced by better efficiency, people will consume more of the resource than previously, thereby offsetting the efficiency improvement. As an example, Samuel notes the story of a neighbour who never used his outdoor lights at night – until he installed CFLs indoors. Since then, he has been using his outdoor lights, because he knows he now has ‘energy-saving bulbs’ inside – with the likely effect being an overall increase in his consumption. In recent years, a growing body of research has confirmed the effect and suggests that a significant proportion of household energy consumption is directly due to consumer behavior.

Welectricity is designed to target this, by providing users with information, feedback, the ability for goal-setting and social proof; the specific behavioral factors thought to influence consumers to conserve. The service packages these factors into a social network that incorporates the normal functions of social media: users will sign up, set up profiles, invite and interact with friends on a simple messaging interface. On the Welectricity dashboard, a bar graph of the user’s electricity consumption (based on information entered from actual bills) is displayed and the consumption graphs of similar users can be superimposed and directly compared. Samuel notes that “psychologists and behavioral economists have found that social proof is one of the most fundamental and powerful factors that influence people to take action, and this is one of Welectricity’s key features.”

Welectricity is a low-carbon solution that only requires access to an internet-connected computer and some information from existing utility bills. No smart meters or other in-house monitoring devices need to be manufactured, packaged, shipped, purchased and installed for Welectricity to work. This Samuel sees as an important fact. “After all,” Welectricity’s website notes, “what’s the point of using a whole lot of energy to bring you a bunch of new stuff that’s meant to help you use less energy?”

About Welectricity Inc
Welectricity Inc is the creator of Welectricity (www.welectricity.com), an innovative, low-carbon web application for tracking and reducing electricity consumption at home. Welectricity is a winner of the 2009 IDEAS Energy Innovation Contest for Latin America and the Caribbean and the development of the service is sponsored by GTZ (German Government Technical Cooperation) and GVEP International (Global Village Energy Partnership). The Inter American Development Bank (IDB) and the Korean Government were also sponsors of the contest.
Contact: Herbert A Samuel
Phone: 1-784-528-6974
Email: haz@welectricity.com

 

WEST INDIES POWER HOLDINGS PRESS RELEASE

Charlestown, Nevis, March 22, 2010.- Today, West Indies Power (WIP) signed a mandate agreement with the Bank of Nova Scotia (Scotiabank), pursuant to a guarantee from the Export Import Bank of the United States (EXIM), for the financing of a 10 MW geothermal power plant and later to arrange financing for a 30 MW geothermal power plant both of which will be installed on Nevis. ..READ MORE

Antigua-Barbuda to hold national consultation on renewable energy

Antiguans and Barbudans will have an opportunity to share their ideas and vision for the use of renewable energy in Antigua and Barbuda, when the government convenes a National Consultation on Renewable Energy on Thursday 18th March 2010. The feedback from the Consultation will feed into a National Sustainable Energy Policy. This policy is to be drafted by the National Energy Task Force, which was established by Prime Minister, Baldwin Spencer. The government’s efforts to reduce its dependence on fossil fuels has been recognized by several key partners including CARICOM and OAS, who have pledged to assist the government in developing and implementing its Energy Policy. Last week, a three-member mission from the CARICOM Secretariat and the Caribbean Renewable Energy Development Programme (CREDP) visited the island to hold discussions with national stakeholders and to examine the ways in which they could assist Antigua and Barbuda’s quest to tap into renewable energy sources.

Barbados to negotiate importation of natural gas

Negotiations on the proposed importation of natural gas by pipeline from Trinidad are slated to begin at month-end.
Following a Cabinet decision on Thursday, February 18, the initiative is in keeping with the government's thrust to transform the Barbados economy to one that was driven by natural gas. Minister of Economic Affairs, Empowerment, Innovation, Trade, Industry and Commerce, Dr. David Estwick, will lead the Barbados negotiation team's effort to hammer-out a number of accords, including a Harmonised Inter-Govermental Agreement (IGA), a Host Government Agreement and a clearly defined formula for a tariff reduction to Barbados, when countries such as Guadeloupe, St. Lucia and Dominica utilise the pipeline. The Minister of Economic Affairs also maintained that in an environment of volatile crude oil prices and the negative impact on the balance of payments, money could be saved through the importation of natural gas.

Jamaica launches second bid round for oil exploration licences

Jamaica opened the second formal licensing bid round for oil and gas exploration, with a seminar in London that publicised new seismic data which indicate very positive geological prospects for oil and gas found both on and offshore.
The seminar was held at the Geological Society of London, under the theme, 'New Prospects, New Opportunities'. Minister of State in the Ministry of Energy and Mining, Laurence Broderick, told the seminar that Jamaica, as a frontier country, now represented a positive opportunity, as the demand for oil increases and exploration moves away from mature basins into frontier provinces. Group Managing Director of the Petroleum Corporation of Jamaica (PCJ), Dr Ruth Potopsingh, said this second licensing bid round would run until March, 2011. It was prompted by the acquisition of new seismic data. The seminar was aimed at key figures in the oil and gas sector. It provided detailed technical presentations from a panel of experts. Many participants were impressed with the detailed information and data provided.

Energy Efficiency in Jamaica's tourism sector

Richard Bourke, chairman of the Jamaica Hotel and Tourist Association's (JHTA) Montego Bay chapter, has declared that every Jamaican business must prioritise energy efficiency. The workshop, which was staged by the Inter-American Investment Corporation (IIC), in cooperation with the JHTA and Scotiabank Jamaica, was held to assist and support Jamaican SMEs from the tourism sector in reducing energy costs. The hotelier added that it was critical for business owners to re-evaluate their plans in terms of energy efficiency. Greater energy efficiency Carlos Serrano, senior financial specialist from the IIC, expressed confidence that the information shared at the workshop would encourage SMEs to practise greater energy efficiency, but admitted that there is still much work to be done.

Guyana on list of 'next decade' oil and gas producers

The United States is in the process of working on a proposed Energy Governance and Capacity Initiative (EGCI) for countries on the verge of becoming oil and gas producers for the next decade. Guyana is on the list of such countries and Coordinator for International Energy Affairs of the US Department of State David Goldwyn met President Bharrat Jagdeo at State House to discuss the proposal which will include the provision of technical assistance to empower countries to wisely manage resources and revenue generated from oil and gas. Goldwyn is leading the effort which involves bringing together the US Government’s top experts along with their unmatched global expertise on oil and gas sector management within a formalized and integrated technical assistance programme focused on the energy sector.

Assessments by the US geological survey on the Guyana basin reveal that the potential for oil discovery is very high given that the location is the second most prospective under explored area worldwide. Were an oil discovery to be made in the Basin, production targets would be estimated at 50 million barrels per year which would be equivalent to 140,000 barrels per day. Additionally Government would be receiving a cash flow of 53 percent, and the oil company 43 percent.

CGX Energy Incorporated, the Canadian-based oil and gas exploration company that is at present in pursuit of petroleum discovery in the Guyana Basin had announced its readiness this year to commence drilling. The company was given the green light to commence operations uninterrupted, after Guyana in 2007 won the Maritime Arbitration Award, following a long maritime border issue with neighbouring Suriname. Since then the CGX Energy Incorporated has done a significant degree of work.

Chief Executive Officer (CEO) of the Guyana Power and Light (GPL) Bharrat Dindyal, CEO of the Guyana Energy Agency (GEA) Mahendra Sharma and Manager of the Petroleum Division of the Guyana Geology and Mines Commission (GGMC) Noel Dennison were also present at that meeting. Goldwyn was appointed by US Secretary of State Hillary Clinton in August 2009. He formerly served as President of the Goldwyn International Strategies (GIS) an international energy consulting firm that was a leading adviser on extractive industry transparency. Through GIS Goldwyn advised Nigeria’s Extractive Industries Transparency Initiative (EITI) on its groundbreaking implementation programme, “Drilling Down: The Civil Society Guide to Extractive Industry Revenues and the EITI.”

He also served as Chairman of the Global Energy and Environment Initiative at Johns Hopkins University School of Advanced International Studies and Senior Associate in the Energy Programme at the Centre for Strategic and International Studies.

National Energy Task for Antigua-Barbuda

The recently established National Energy Task Force Antigua and Barbuda has begun the process of data gathering and is also gearing up for a series of stakeholder consultations as it fulfils its mandate of producing a comprehensive and strategic National Sustainable Energy Policy. The 18-member Task Force which was established by Prime Minister Baldwin Spencer, is to be chaired by electrical engineer Edward Baynes while project manager Brian Lyn is to be the deputy chair of the body.

New energy legislation in Barbados

The Barbados government is expanding its energy platform to introduce new legislation that would allow the Barbados Light and Power Company Limited to purchase its electricity from independent renewable energy sources.
Cabinet had already approved a plan to approach the Inter-American Development Bank (IDB) for assistance in preparing the relevant legislation to effect this. Even though the current Income Tax Provision Act covered the cost of energy audits up to $2 000 as part of the general Income Tax Allowance for Home Improvement of $10,000 in an income year, Dr Estwick alluded to the creation of a separate allowance in energy conservation. The Economic Affairs Minister revealed there was an increased demand for environmentally friendly and renewable energy solutions, particularly in the areas of construction, transport and manufacturing.

Energy Minister to Break Ground for US$49 Million Wigton Wind Farm Expansion Project

Minister of Energy and Mining, Hon. James Robertson, broke ground for the US$49 million Wigton Wind Farm expansion project in Manchester. The project will include the installation of nine new two-megawatt wind turbines that will generate 18 megawatts of power, increasing the total amount of energy produced by Wigton to 38.7 megawatts. The power will be sold to the Jamaica Public Service (JPS) for domestic use. In addition, plant operating facilities will be improved and a resource room for educational and technical information exchange established. The expansion will mean approximately 55 gigawatt hours of energy, enough to power about 24,000 homes. It will also result in saving of about 32,400 barrels of oil valued at US$2.3 million, and in so doing, avoid 45,954 tonnes of carbon emissions, as wind energy is cleaner than energy derived from oil. The project advances the new energy thrust by the Government and the Ministry of Energy and Mining, as stated in the National Energy Policy. The expansion of the Wigton Wind Farm will increase Jamaica's energy output from renewable sources and help the country to meet its target of 11 per cent of energy needs from renewable sources by 2010. At present, only 5 per cent of Jamaica's energy comes from renewable sources. Wigton Wind Farm is a subsidiary of the Petroleum Corporation of Jamaica (PCJ), which is an agency of the Ministry of Energy and Mining. Wigton was incorporated in 2000 to develop wind farms and similar renewable energy systems to harness energy for generation of electricity for commercial and domestic use. The project will be built on a turnkey basis by Vestas Eolica of Spain with local input in engineering, studies and construction. Wigton has said that commissioning of the plant is scheduled for July 2010 and the project is 100 per cent financed from the PetroCaribe Development Fund.

Russian electricity company opens office in Cuba

The Russian electricity company Inter RAO announced that it opened an office in Cuba to support its commercial relationship with the Caribbean island and with other Latin American nations. According to Granma newspaper, Inter RAO will participate in the organization of the joint venture Generación Mariel SA, created upon the principle of equality between Cuba and Russia as part of inter-governmental agreements to expand cooperation in the energy sector. This Russian enterprise, along with the Cuban Electricity Union, will work in a project to manage and modernize the Maximo Gomez thermoelectric power plant, including the renovation of four generating units with a capacity of 100 MW each and the construction of two others with the same capacity, RIA Novosti news agency reports. Inter RAO accumulates a capacity of 18,000 MW and it has a prominent position in the Russian market of energy import and export.

Jamaica's sugar industry attracts UK interests

UK-based sugar processing and marketing company Tate and Lyle has expressed "very strong" interest in investing in Jamaica's sugar industry.
The interest from Tate and Lyle comes against the background of a European revival of interest in cane sugar. Two of the five government-owned sugar estates that have already been divested have been showing strong improvements and transformation under new private sector ownership. Long Pond in Trelawny and Duckenfield in St Thomas have already been sold while the Government is eagerly seeking to ink deals for the divestment of Frome, Westmoreland; Monymusk, Clarendon, and Bernard Lodge in St Catherine. The sugar divestment programme is being spearheaded by Aubyn Hill of consultancy firm Corporate Strategies Limited. It is expected to remove billions of dollars in expenditure from the public purse while modernising the industry and securing the jobs of workers.

World Bank to support CARICOM

The World Bank says it can help CARICOM increase its resilience to climate change, with innovative financing and low carbon growth strategies that include a focus on reducing the cost and increasing the efficiency of energy in the region. The Bank's private sector arm, the International Finance Corporation (IFC), is exploring opportunities to support renewable options, such as geothermal, hydro, wind and solar, along with an energy efficiency programme, World Bank Group President, Robert B Zoellick, told Heads of Government attending CARICOM's 21st Inter-Sessional Meeting in Dominica, Thursday (March 11). The meeting addressed the range of issues the region faces in complying with international standards under the OECD and G-20. Jamaica's Prime Minister, Bruce Golding, heads the island's delegation to the meeting in Roseau, Dominica which runs March 11-12. The Prime Minister is accompanied by Deputy Prime Minister and Minister of Foreign Affairs and Foreign Trade, Dr Ken Baugh, and other top government officials. Other matters on the agenda relate to external trade negotiations for a CARICOM-Canada Trade and Development Agreement; the status of the implementation of the CARIFORUM-EC Economic Partnership Agreement; and the renewal of the Caribbean Basin Trade Partnership Act.

UK energy company buys LNG asset in Trinidad

Centrica will buy the Trinidadian gas properties of Suncor Energy Inc for $380 million, giving the owner of British Gas its first toehold in a liquefied natural gas project. The deal to acquire Suncor's portfolio of assets in Trinidad and Tobago gives the owner of Britain's biggest household energy supplier a secure source of gas from the Caribbean country over the long term.  Suncor, Canada's largest energy company, is selling the properties as its looks to winnow its holdings following its C$22.7 billion ($21.1 billion) purchase of Petro-Canada last year and raise cash to expand its Canadian oil sands production. With the sale of its Trinidad assets, following on the disposal of gas properties in Colorado and Western Canada, Suncor has now raised C$1.3 billion and still plans to sell some assets in the North Sea and the Netherlands.

Centrica said production from its new properties should average between 60 million to 70 million cubic feet per day in 2010.

The properties include a 17.3 percent stake in the North Coast Marine Area (NCMA-1) production area and equity interests in three blocks; Blocks 22, 1(a) and 1(b), for future development. The NCMA-1 block, which supplies gas to Trinidad's Atlantic LNG facility, holds remaining working gas interests of 266 billion cubic feet (bcf) of proven and probable reserves attributable to Centrica's 17.3 percent stake. Gas produced from the block has been contracted to a third party until 2023. Block 22 and Blocks 1(a) and 1(b) comprise 90 and 80 percent operated interests, respectively, with recoverable resources attributable to Centrica estimated at 1.34 trillion cubic feet. Trinidad and Tobago is one of the biggest exporters of the super-cooled gas in the Atlantic, supplying over half of the LNG going into the United States and also supplying Europe and Asia. Centrica has an existing gas asset in Trinidad and Tobago through an equity interest in Block 2.

Nevisians benefit from job openings at wind farm

An official of Wind Watt (Nevis Ltd), a family owned and operated energy developer based in Canada, said Nevisian workers would not be left out in the construction and subsequent maintenance of the Maddens Wind Farm.
Staff Electrical Specialist of WindWatt Power Canada Inc., Peter Hexamer, told the Department of Information in a recent interview that the company had already began to employ persons some of whom he hoped would remain when the construction work was completed. According to the electrical expert, the project called for specialised personnel that the moment was not available on Nevis. A specialised drilling team of six persons from the United States were already on site but assured that “the actual assistance and the labour force that we are going to use here as much as possible will be Nevisians.” Meantime, while he gave an overview of what the wind farm would look like. Hexamer said the facility would utilise active pasturelands in the area which would be conserved once the wind turbines were assembled With regard to generation Hexamer explained that the power generated by the turbine would be fed directly into a nearby Nevis Electricity Company Ltd. grid at the same frequency of 11,000 volts which is 110/220 volts transformed for domestic use of 110/220 volts therefore it will mesh without any interruptions. In response to a question pertinent to durability of the equipment, The Staff Electrical Specialist said the turbines had the durability to withstand the elements.

UWI engineering programme gets Energy Institute's accreditation
TWO Petroleum Studies programmes at the University of the West Indies (UWI), St Augustine, recently earned accreditation from the Energy Institute.
This is in addition to previously earned accreditation by the Institute of Materials, Minerals and Mining (IOM3) and the Geological Society of London (GSL) respectively.

The university's Master of Science (MSc) in Petroleum Engineering and Bachelor of Science (BSc) in Petroleum Geoscience were awarded accreditation by the UK-based Energy Institute, which has accreditation facilities for degrees for Chartered Engineering, Chartered Petroleum Engineer, Chartered Environmentalist and Chartered Science status.

The BSc Petroleum Geoscience at UWI became the first geological programme of any nature to be accredited outside the UK when it was awarded accreditation by the Geological Society of London for a period of six years from March 2004, following a February 2004 visit by the president of the Society.

The programme has now been re-accredited to 2016.

The MSc Petroleum Engineering at UWI has been accredited by the IOM3 for graduates entering the programme from 2004 to 2011. As a result, these graduates will be able to go forward to become internationally recognised and chartered professionals by IOM3 after four to six years suitable experience and responsibility. Accreditation also provides peer-reviewed certification of the standard and scope of professional and scientific training offered by MSc programmes, giving universities, grant-awarding bodies and employers confidence in the value of the programme in producing well-trained graduates for employment in the geosciences. In addition, the recognition of an MSc programme by accreditation is a valuable aid for students choosing their locus of study, particularly for overseas students.

The Energy Institute accreditation for graduates entering the programme from 2009 to 2013, was awarded after an official visit to the UWI to examine facilities, meet staff and students and assess against the Energy Institute criteria for accreditation. The visiting Energy Institute team met with Professor Richard Dawe, head of Petroleum Studies at UWI, St Augustine, who explained the history and organisation of the unit and the nature of its courses. The team also met with other members of academic staff and with a selection of students. A report from the visiting team described the teaching staff as "supportive and accessible" and "committed and enthusiastic, with a well developed involvement with the local and international oil and gas industry". The report further described students as "very enthusiastic about the courses".

Departments applying for accreditation must demonstrate that their programmes introduce students to the major aspects of their degree subject and specifically, that appropriate skill levels are attained in certain highlighted topics. They must also demonstrate that teaching in these subjects is carried out by appropriately qualified staff with relevant postgraduate research and/or professional experience as appropriate, and a record of continuing professional development. This applies particularly to fieldwork where the teaching of mapping skills is considered to be of very high importance.

CARICOM Rejects Nuclear Waste Transportation
The Caribbean Community (CARICOM) rejected once again the use of their territorial waters to transport nuclear waste in view of the departure of a new ship with these products from the United Kingdom to Japan. In an official statement, the bloc declared being concerned for the danger this represents for the area when passing radioactive materials through the Caribbean Sea, the main source for the social-economical activity for its 15 member countries. CARICOM also demanded to put an end to these practices due to the negative effects to people, sea flora and fauna and the environment of this zone. Industrialized countries are using the region for more than 20 years to transport high toxic wastes despite continuous condemnation of the Community, which is afraid of accidents or terrorist attacks to the ships during the crossing. During the 3 Summit Cuba- CARICOM held in 2008, leaders of the group agreed to declare the Caribbean Sea as an especial area in the context of the sustainable development of the UN General Assembly.

Oil production in Guyana likely by 2014
The Canadian-based CGX Energy Inc, which is exploring for oil in Guyana has said that production is likely to begin in four years time as the company continues its setting up of wells in its Corentyne Petroleum Prospecting Licence (PPL).  This was revealed in an analysis “Forging Ahead – Increase Target and Maintain Rating” by a financial services firm, on January 21.  According to Canaccord Adams report, this time span is the “most likely” scenario adding that the Corentyne Licence has the potential for 400 million barrels of crude oil. 

It said CGX Energy will be partnering with a major international oil and gas exploration company for the first exploration well in Corentyne, given the major players involved in offshore Guyana and Suriname. CGX Energy Inc had announced in December that it had recommenced the search for a joint venture partner to participate in Guyana's drilling.  Speaking of investors’ risks, the analyst said an investment in the company’s securities would be speculative.  It also said any swing in crude oil and natural gas prices could impact CGX Energy prosperity. Recently the company had announced its plans to complete the first well by mid-2010.

Petro Andina to begin drilling in Trinidad

Petro Andina Ltd, a newcomer in Trinidad and Tobago's energy industry, plans to begin a drilling program. Petro Andina has three onshore blocks in Trinidad and four onshore blocks in Colombia. The company is interested in seeking out oil over natural gas in Trinidad. He described the country as being an extension of major petroleum opportunities extending from neighboring.

BP Trinidad to continue drilling on two wells
BP Trinidad and Tobago will continue drilling two appraisal natural gas wells this year to increase its reserves, a senior company official said on Wednesday. Curtis Mohammed, vice president for development at BP Trinidad and Tobago, told an energy conference that wells in the Serrette and Savonette offshore fields were drilled last year. Studies in producing offshore fields Kapok, Cannonball and Mango also increased resources, which he said reflected good results from surveillance and depletion planning efforts. BPTT, which operates 12 offshore platforms and two onshore processing facilities, sells 40 percent of its gas to the state-owned National Gas Company and 60 percent to the Atlantic LNG company. BPTT's capital expenditure is set at US$482 million and planned operational expenditure at US$507 million. 

Investing in alternative energy sources

The Chairman of the Scientific Research Council (SRC) James Moss-Solomon called on the Jamaican private sector to use its financial and creative might to invest in alternative energy sources. This approach, according to Moss-Solomon, would help the island wean itself of its oil dependency while creating scores of jobs. Moss-Solomon , who was speaking at a Rotary Club Kingston luncheon at the Jamaica Pegasus hotel on Thursday, believes that the private sector of Jamaica could look into areas such as solar energy, liquid natural gas, bio-fuels, hydro and wind energy. According to figures presented by Moss-Solomon, in 2008, Jamaica's oil-import bill was $2.7 billion, fell to $1.2 billion in 2009, and is projected to reach $2.49 billion in 2010.

Fallout In Bauxite

The significant reduction in the oil import bill in 2009 occurred as a result of the major fallout in the bauxite sector due to the global recession. Looking at the major users of oil in the island, such as the transport sector, the Utilities and bauxite, Moss-Solomon said that Jamaicans could invest in alternative energy to supply those sectors.

Gasolene prices down in Jamaica

PETROJAM Limited has announced reductions in the ex-refinery prices of gasolene but increases for diesel oil and other petroleum products.

Marketers will add their respective margins. The new prices, which take affect tomorrow, are as follows:

UNLEADED GASOLENE 87: $66.4969 (DOWN $0.50 PER LITRE)
E-10 GASOLENE: $64.4669 (DOWN $0.50 PER LITRE)
UNLEADED GASOLENE 90: $67.9397 (DOWN $0.50 PER LITRE)
AUTOMOTIVE DIESEL OIL: $64.8797 (UP $0.70 PER LITRE)
KEROSENE: $55.8908 (UP $0.85 PER LITRE)
PROPANE (LPG): $31.4821 (UP $0.13 PER LITRE)
BUTANE (LPG): $35.3120 (UP $0.64 PER LITRE)

Trinidad boosts drilling as gas reserves drop

Trinidad and Tobago will need as many as nine exploration wells to be drilled annually to maintain the country's gas reserve base, which according to an independent audit, dropped to 15.4 trillion cubic feet (tcf) in 2008 from 17 tcf in 2007. US-based petroleum consulting outfit, Ryder Scott, which carried out the December 2008 audit for the government, said proved reserves stood at 15.4 tcf, probable at 8.5 tcf and possible at 6.3 tcf.
In 2000, proved gas reserves were 19.67 tcf and peaked in 2002 to 20.75 tcf.

Tremendous pressure
The volume of gas produced during 2008 was 1.5 tcf at an average rate of 4.1 bcf of gas per day.
In the government's most recent efforts to encourage exploration, the ministry of energy signed several new production sharing contracts for blocks.

New exploration provinces
Government also plans to attract companies to new exploration provinces through the 2009/2010 competitive bid round and a revised petroleum fiscal regime, which seeks to create an environment to encourage and promote exploration and development activities and offer a more equitable sharing of the economic rent. Six blocks in shallow water will be offered in a bid round during the first quarter of 2010. The blocks which comprise 870,000 hectares that are primarily gas prone with 8 tcf of unrisked identified exploration resources. A deep water bid round is also planned for the second quarter of 2010. Helena Inniss-King, director of resource management at the energy ministry said a study which was recently completed on the deep water areas indicates large volumes of oil and gas. Meanwhile the energy minister said the country also continues to have large volumes of uncommitted gas because several projects have not yet come on stream. Responding to a question about whether there is a market for any substantial gas discovery, Enill said the answer lies in the continuous expansion of the downstream industrial base which includes 10 ammonia and seven methanol plants which feeds the demand.

Global downturn
A central bank April 2009 monetary policy showed that the global downturn had impacted on the volume of oil and petrochemical exports over the preceding five months, declining by 11.6 per cent compared with the corresponding period of the previous year. The plunge in external demand for petrochemical exports in particular has negatively impacted the domestic energy industry. Natural gas utilisation also fell by 2.1 per cent and is likely to remain low until there is some recovery in demand in the major markets.

The volume decline has been accompanied by a dramatic fall in prices - 49.2 per cent for methanol and 17.2 per cent for ammonia.

New hydro-power project being considered in Guyana

Guyana's President Bharrat Jagdeo met on Monday evening with Charge D’Affaires of the Brazilian embassy, Minister Rodrigo Fonseca, and two representatives of Andrade Gutierrez Construction, Gianfranco Miceli, Commercial Director, and Pablo Arruda, Business Director, to discuss the possibility of establishing an 800MW hydro-power project in the Middle Mazaruni, Region Seven.

Speaking with the Government Information Agency (GINA) after the meeting, Minister Fonseca explained that the project will be studied during the coming weeks. He further stated that the Andrade Gutierrez representatives came to brief the President on the details.

Miceli explained that some of the energy would be integrated into Guyana’s national power grid with the rest of the energy being purchased by Brazil for consumption by the state of Roraima, the northern Brazilian state adjoining Guyana.

This new initiative will join with the other hydro-power development under consideration, the Amaila Falls project, which has the capacity to provide over 140 megawatts of electricity and is to be located along the Kuribrong River in Potaro, Region Eight, as Government continues to build a new economy focused on innovation and value-added products.

Andrade Gutierrez S.A (AG Group or AGSA) is a Brazilian construction company. The organization was founded in 1948 and is today one of the largest privately held groups in Latin America and amongst the top three largest construction companies in Brazil. It is a market leader in construction, government contracts, telecommunication, real estate investments and other sectors of the Brazilian economy.

Venezuelan professionals exposed to the energy and oil sector petroleum industry to the Caribbean

24 professionals from Venezuela's energy and petroleum sectors became immersed in Jamaica's culture during their three-month stay here as they completed training in English language at the University of the West Indies, Mona, and western Jamaica campuses.

The group swam with dolphins, visited the Blue Lagoon in Portland and the Wigton Wind Farm in Manchester, attended sporting events, feasted on local cuisine and danced to reggae and dancehall music in between their studies, which were taught by UWI graduate students.

She was speaking on behalf of her fellow Venezuelans at the graduation ceremony for the group at the Hilton Kingston Hotel on August 28. The group included engineers and lawyers, as well as officers from Venezuela's energy and petroleum ministry.

The English language training is provided by UWI at its Jamaican campuses and at its Cave Hill campus in Barbados through an agreement signed with the state-owned petroleum company Petroleos de Venezuela. More than 100 professionals are to be trained over two years under the agreement. The Venezuelans were attached to UWI's Latin American Cultural Centre (LACC) during their stay.

Minister of Energy and Mining James Robertson, who was a special guest at the function, highlighted the importance of the relationship between Jamaica and Venezuela, particularly through the Petrocaribe agreement under which Jamaica purchases oil from Venezuela at preferential rates.
Robertson also promised to get more involved in the work of the LACC through the Petrojam Refinery.

Annette Insanally, director of the LACC, said the programme was significant because "it goes beyond the mere learning of English to expose Venezuelan professionals in the energy and oil sector petroleum industry to the Caribbean."

According to UWI's website, the LACC was founded in 1993 with a mission "to build bridges of understanding and co-operation between Latin America and Caribbean countries in order to span the spatial, linguistic, and historical divides which have traditionally separated our peoples."

The centre's operations encompass a range of activities designed to maximise opportunities for cultural and academic exchange, such as language training, exchange programmes, seminars on intra-regional migration and other topics, cultural events and publications.

Energy programmes to come on-stream in 2010 at UWI Mona

The University of the West Indies (UWI), Mona will this September begin offering a programme of study leading to a Bachelor of Science degree in Electronics Engineering. The programme will be offered through the Electronics Unit of the Faculty of Pure and Applied Sciences at the Mona campus.
Additional programmes, including Renewable Energy, Energy Management & Engineering and Biomedical Engineering, are expected to come on stream in 2010. Preparation of Jamaican students for advanced placement in traditional engineering programmes, such as Power Engineering, Civil Engineering and Mechanical Engineering, will also be facilitated at the campus. The university has noted with deep concern the declining numbers of Jamaicans enrolled in the engineering programme at its St Augustine Campus in Trinidad & Tobago. In 2007/2008 the undergraduate enrolment at the Faculty of Engineering was 1,419 with only 53 of these being Jamaican students. UWI, Mona also has a dedicated Electronics Unit that has served the country for years, and an Energy Conservation Unit which has accumulated considerable expertise in energy conservation technologies. The campus also has a Chemical Engineering potential in the Department of Chemistry.

IDB Supports Energy Efficiency in Public Sector

The Ministry of Finance and the Public Service and the Inter-American Development Bank (IDB) have signed an agreement for a grant to fund an Energy Efficiency and Conservation Technical Assistance programme, valued at US$437,500. The agreement was signed at the Ministry's Heroes Circle office Friday (August 21). The objective of the programme is to support the Government's efforts to improve energy efficiency in the public sector, and provide the technical assistance to prepare a potential energy efficiency loan programme. The country's energy costs for last year totalled approximately US$2.7 billion, with public sector consumption accounting for 20 per cent of that amount, or over US$540 million. Earlier this year Prime Minister, the Hon. Bruce Golding, gave the directive that the public sector cut its energy consumption by 15 percent. The programme aims to achieve this goal and, if the target is achieved, the country could save US$81 million. IDB Country Representative, Gerard Johnson, said the bank is pleased to have found the technical and project management capacity in the Ministry, which has made it possible for it to become the implementing agency. Mr. Johnson said that, if the project succeeds, it will generate savings that will not just service the loan, but it will provide income for the Government. The Energy Efficiency and Conservation Technical Assistance programme has five components: evaluation of energy consumption patterns for public sector buildings; cost assessment of public sector energy consumption; cost/benefit analysis of retrofitting buildings and public sector energy demand, with energy efficient equipment; investment plan for energy efficient equipment installation; and definition of a terms of reference for an energy services company.

Biofuel industry plan for Bahamas

The Bahamas government says its working fast to introduce bio-fuels as a cost-effective means of supplying energy for the country.
Minister of State for the Environment Phenton Neymour said government had initiated a National Energy Policy "to reduce the reliance on fossil fuel, address energy security and energy efficiency." He revealed that Bahamas Waste, the largest private waste management company in the country, has already been approved for biodiesel production from vegetable oil. The site for the proposed facility has been inspected for the production of biodiesel and discussions held about the environmental impact assessments. Bahamas Waste will use the majority of the biodiesel produced at the plant as fuel for their waste collection vehicles. Approval has also been granted to other companies to manufacture biodiesel and ethanol. He pointed out that the government and private sector must work together to address the use of renewable and clean energy. Neymour said the Bahamas can be an example to larger countries that rely heavily on fossil fuels.

Proposed energy plant to solve landfill shortage

JOAN Gordon-Webley, the executive director of the National Solid Waste Management Authority (NSWMA), says the proposed 'waste-to-energy' plant expected to convert 90 per cent of the island's garbage into electricity for more than 200,000 residential customers, will not only solve Jamaica's problem of landfill shortage, but will provide much-needed revenue for the garbage collection agency.

Gordon Webley, who made the remark at the Observer's Monday Exchange meeting of reporters and editors at the newspaper's head offices in Kingston Monday, said there was more than enough waste at the landfills to generate energy at this plant. She explained that the landfills have another 10 years to reach their capacity.

Denise Tulloch, senior research officer in the Centre of Excellence for Renewable Energy at the Petroleum Corporation of Jamaica (PCJ), told the Observer Monday that the PCJ will - by next month - begin negotiations with the successful bidders to operate the plant.

She added, however, that the plant would not be in operation before 2013, given that the investor is granted a renewable energy licence from the Office of Utilities Regulation to operate such a large grid-type system. Lands, she added, have also been identified in close proximity to the Riverton City and the Retirement disposal site in St James.

Gordon-Webley, in the meanwhile, explained that the NSWMA will only be responsible for providing the raw material and the PCJ will have responsibility for alternate energy. As for the recommendation that residential customers sort their garbage, Gordon-Webley said it might be foolhardy to ask Jamaicans to begin doing such as the NSWMA does not have "first world" trucks to accommodate such a process.

Proposed Changes to PetroCaribe Agreement Concerns CARICOM 

CARICOM countries, including Jamaica, which feel endangered by proposed changes to the PetroCaribe agreement, are to approach exporter Venezuela for a compromise soon. This was indicated by Guyana's President, His Excellency Bharrat Jagdeo, when he addressed a special press briefing at Jamaica House, Monday (August 3). The briefing followed a meeting of the Special Prime Ministerial Task Force set up by CARICOM to craft appropriate strategies in response to the global economic crisis and its impact on the region.

President Jagdeo, who chairs the committee, said that some of the proposed conditions would present serious challenges to these countries.
Mr. Jagdeo pointed to particular countries in the eastern Caribbean which have faced enormous problems, with downturn in several sectors, and subsequent significant losses in revenue. He noted that Antigua has lost 35 per cent of its revenue in the past year. Jamaica's Prime Minister, the Hon. Bruce Golding, who also spoke at the briefing, said his Government has to stress the fact that the national budget was predicated on the PetroCaribe arrangement.

Mr. Golding said that, while he understood some of the difficulties that may warrant changes to the agreement, Jamaica's current budget and its medium term economic programme, were predicated on the PetroCaribe agreement.

PetroCaribe arrangement as it now exists and, therefore, any sudden change would have a significant effect on our external and fiscal accounts," he said.
Mr. Golding acknowledged that the genuineness of Venezuela's friendship towards the Caribbean was unquestionable, as the deferred payment arrangement was unmatched. The region's concerns were triggered, mainly, by a proposal from Venezuelan President, Hugo Chavez, to amend the PetroCaribe arrangement so that beneficiaries pay all, or at least 80%, of the cash upfront and then receive direct loans from Venezuela, which would be limited to specific projects approved by Chavez's administration. It was expected that Mr. Golding would have been able to discuss the issue with President Chavez on Thursday, when the Venezuelan President was expected to pay an official one-day visit to Kingston. However, the visit was postponed, after Mr. Chavez sustained an injury on Sunday and was ordered to rest for eight days. Minister of Energy, Hon. James Robertson, left the island Monday for Venezuela, at the invitation of their Minister of Energy and Petroleum, Rafael Ramirez, to hold further discussions.

Cuba cuts energy consumption to save economy

Air conditioners are shut off in the dead heat. Factories close at peak hours, and workers go without their government-subsidized lunches. Cuba has ordered austere energy savings this summer to cope with rising budget deficits and plummeting export profits. The latest cuts are small compared with strict measures imposed during the so-called special period, when Cubans nearly starved after subsidies dried up with the collapse of the Soviet Union. Nor are they as severe as the blackouts of 2004, when technical problems at power plants left much of the island in the dark for hours at a time. Fans and water pumps were idled. Milk and food spoiled, while electrical surges damaged refrigerators, televisions and other costly appliances. The company's oil production on the island was down 19 per cent last quarter compared to the second quarter of 2008, mainly because Sherritt suspended drilling earlier this year when Cuba fell behind on its payments. The government and Sherritt have worked out a plan to pay down the debt, and the company says Cuba has been sticking to it. But the situation could have spurred the mandatory energy savings. Neither Sherritt nor the Cuban government would provide more details. Or Cuba may be trying to save unused oil to bolster strategic reserves while prices are still relatively low, said Dan Erikson of the Inter-American Dialogue in Washington. Beginning June 1, the government ordered energy conservation measures as part of a broader plan to cut the national budget by 6 per cent. Central planners also announced Friday they were revising their economic growth projections downward, from 2.5 per cent to 1.7 per cent. As recently as December, they had projected 6 per cent economic growth in Cuba.

Schools In Jamaica welcome solar energy feasibility study

Public schools in Jamaica have welcomed news of Government's move to explore the use of solar energy at 34 of their institutions. Thirty-four schools have been selected from the six educational regions for the feasibility study being conducted by CALA Telecom Limited and for which the Spanish government is providing a grant of euro 97,350. Of the 34 schools selected, 17 were from regions four through six - St James, Hanover, Westmoreland, St Elizabeth, Manchester, Clarendon and St Catherine. The others were divided among regions one to three - Kingston and St Andrew, St Thomas, Portland, St Mary, St Ann and Trelawny. School principals are excited at the prospect as they have been shelling out $400,000 to $500,000 per month in electricity bills. Irwin High School has been using solar power since 2006 with funding from the Environmental Foundation of Jamaica. This study will assess the technical and infrastructure conditions of public schools in Jamaica as well as the financial cost or benefit of the introduction of solar energy systems.

Wigton moves forward with expansion 

Wigton Windfarm is moving forward with its Wigton II expansion despite the pending renegotiation of its power purchase agreement (PPA) with Jamaica Public Service (JPS), according to Managing Director Earl Barrett. The contract with JPS stipulated that the rate would drop after five years, said Barrett, noting that many of the individuals involved in the 2002-2003 negotiations no longer work with the two companies.

The less-than-favourable terms of the agreement, combined with foreign exchange losses and a rising variable interest rate of the company's US$16-million NCB loan from seven to 11.75 per cent have made the wind project unprofitable, noted Barrett, who voiced optimism that Wigton and JPS would come to a revised agreement. "Wigton I was a learning experience, more for the operators than for JPS," he said. Barrett declined to project 2009 earnings for the company citing ongoing negotiations. According to Jamaica Public Bodies Estimates of Revenue and Expenditure for the year ending March 2010, however, the company's long-term liabilities will increase to $4.89 billion for 2009/2010, following on $1.68 billion estimated for 2008/2009. The companies losses will increase, meanwhile, from its unaudited reported figure of $88 million in 2007/2008, to an estimated loss of $108 million in 2008/2009, and $409 million for 2009/2010.

Wigton I has a generating capacity of 20.7 MW, while Wigton II, set for groundbreaking in August and to be located on the same site, will add an additional 18 MW of capacity. Despite the problems surrounding the economic viability of Wigton I, Wigton II has strong prospects and will have a more favourable PPA in place. One potential investor in Jamaica's wind power industry is New York-based Conduit Capital Partners, which last month announced the acquisition of Jamaica Energy Partners. According to Conduit Chairman Scott Swensen, the main deterrent to the group's interest has been the shaky PPA Wigton has with Jamaica's distribution monopoly. Should this be resolved, the company could potentially take interest in Wigton I, and should more favourable terms be established for the expansion projects, Jamaica's renewable energy landscape would be seen as more viable than it has been to date.

A contract has been signed with Denmark-based Vestas for the supply of turbines, construction, commissioning, and maintenance of the new windfarm over a three-year warranty period, he said. Barrett noted that while slated Wigton projects, which include Wigton III and IV slated for an undetermined point in the future, will be constructed on or near the company's current site in Manchester, other potentially viable parishes for wind generation include St Thomas and St Mary. Barrett went on to point out that while renewable energy will play a role in reducing long-term costs, the real obstacle to more competitively priced electricity relates to the obsolete generating technology used by JPS itself. The target for renewables in Jamaica's energy mix has been set at 15% by 2020, he noted, while 80% of JPS' generation systems are obsolete and need to be replaced with newer, more efficient equipment.

E10 90 gasoline in October

The Government will roll out ethanol-blended unleaded gasoline 90 octane by October, following the missed original May 1 deadline. The postponement was largely due to delays in the construction of the storage facilities in Montego Bay. The reason for the timeline shifting was due to the repairs and tank expansion in Montego Bay as there were some concerns in terms of going through environmental checklist. He reiterated that the E10 programme is a good one which Jamaica can be proud of having been among the first set of countries to remove harmful additive which was part of petroleum mix of 87 and 90 octane. As for the subsidy currently attached to the E10 fuel, Robertson explained that this, which he refers to as the marketing tool, will be eliminated once there has been a full roll-out, affording consumers the true cost of the product. Jamaica imports feed stock used in ethanol production on a competitive tender process through commercially tendered contracts regulated by Cabinet.

Over 100 service stations Island wide were certified to sell E10 for the initial roll-out. The targeted parishes, he said, included St Ann, St Mary, St Thomas, Portland, Manchester, Clarendon, St Catherine, Kingston and St Andrew.

Four ethanol skids will be installed to facilitate the blending of E10 87 and E10 90 which would be done in two phases.

Phase one - which was completed last month will constitute the blending of E10 87 on the four existing Regular 87 loading arms while supplying Regular 87 on the two loading arms that are now being used for E10 87.This will result in more loading capacity for E10 87 which is in greater demand than regular 87.

Phase two will constitute the loading of E10 87 and E10 on all four loading bays.

Renewable energy development on Nevis

The development of renewable energy on Nevis must continue. Minister responsible for Natural Resources and the Environment of Nevis Carlisle Powell made that position clear when he addressed participants at the start of the landmark First Eastern Caribbean Geothermal Conference at the Mount Nevis Hotel on Tuesday. The tourism sector was another area the Minister noted would benefit from the island’s use of geothermal energy. He cited that the island could be marketed as a green destination and rekindle interest among the islands [Nevis and St Kitts] as a tourism destination.

Powell said the use of geothermal energy, on Nevis would help the island to lower its carbon footprint [greenhouse gas emissions which are caused directly or indirectly by an individual, organization event or product].

Nevis began its thrust into geothermal energy recently and Minister Powell explained though the Island was blessed with abundant sunshine and friendly people, oil was not one of its natural resources and the island has had to depend on imported oil to produce electricity.

He explained that in 2007 the island’s electricity company spent over EC$22million to purchase diesel to run the power plant and in 2008 that figure rose to EC$33.3 million.

In January 2007the NIA Granted West Indies Power a licence to commence geothermal explorations and in 2008 the Geothermal Resources and Development Ordinance was passed in the Nevis Island Assembly. In April 2009, the Nevis Island Administration (NIA) signed an agreement with developers West Indies Power Nevis Ltd. to provide the island with geothermal energy while the Nevis Electricity Services Company Ltd.(NEVLEC) signed a Power Purchase Agreement. According to Powell, WIP had indicated that Nevis would begin to utilise geothermal power by mid 2010 and later that year St Kitts would be able to follow in Nevis’s footsteps. A 1998 study by the United States Department of Energy revealed that Nevis had the potential to produce 900 megawatts of power. Current statistics indicate that the island utilised only 6.5megawatts of energy and peaked at about 9 megawatts. The conference which concludes on July 02 was hosted by the NIA in conjunction with the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC), the Organization of American States (OAS) and the Caribbean Renewable Energy Programme (CREP) – German Technical Corporation (GTZ).

Forest carbon plan for Guyana

The World Bank has approved readiness plans for Guyana and Panama at the third meeting of the Participants Committee (PC) of the Forest Carbon Partnership Facility (FCPF) held in Montreaux, Switzerland from June 15 to 18, despite protests from civil society. According to the Bank on Monday, with the approval of the readiness plans ( R- Plans), the Forest Carbon Partnership Facility process was moved forward. The PC, the governing body of the FCPF, is made up of both donor and developing country representatives. The FCPF was created in 2007 as a mechanism to support country readiness for “ reducing greenhouse gas emissions from deforestation and forest degradation” ( REDD), a mechanism now under negotiation at the United Nations Framework Climate Change Convention. The FCPF is made up of two funds, a readiness fund and a carbon fund, the former to support country readiness efforts, the latter to buy certified emissions reductions for trading on the carbon markets. The carbon fund is not yet operational.

ONGC Mittal Energy exits Trinidad deal

ONGC Mittal Energy Ltd (OMEL) has pulled out of an oil and gas production sharing contract it had signed with the Trinidad and Tobago government six months ago. A consortium bringing together OMEL and Trinidad and Tobago's state-owned oil company Petrotrin signed the contract with the government in December to carry out exploration on the North Coast Marine Area (NCMA) Block 2, which comprises 98,669 hectares (243,816 acres).

Enill said the NCMA Block 2 would now be included in the country's next oil bidding round, which does not yet have a scheduled date.

OMEL, a joint venture company between ONGC Videsh Limited of India and Mittal Investments Sarl, had planned to invest $500 million in exploring five wells and constructing production facilities over the next four years.

Study to Introduce Solar Energy Systems in Jamaican Schools

The Government of Jamaica has received a 100,000 Euro grant from the Government of Spain, to carry out a feasibility study for the introduction of solar energy systems in 34 public schools across the island. The project, which will allow for the introduction of best practices in the energy sector of Jamaica while helping to substantially reduce the energy bill of the schools, was funded through the Spanish Ministry of Industry and Trade. The project would provide a viable alternative to carbon-based energy, and reduce the cost of electricity to schools, which amounts to some $500 million each year.

There is a wind turbine project at Munroe College in St. Elizabeth and a solar system at Irwin High School in St. James.

According to a brief presented at the signing, the initial feasibility study to be undertaken will include information on electricity and water consumption assessment to determine, inter alia, the actual electricity consumption of selected schools; a structural building analysis to identify and assess the most suitable areas for the installation of solar energy systems in schools; and analysis of solar energy systems to determine the best structure for each school. It will also include economic and financial analyses and calculation of the initial cost of the investment of each solar system; the return on investment for a maximum of 15 years; and the annual saving on the electricity bill by the introduction of solar energy systems. The schools selected are located in the six educational regions across the island. Seven schools have been selected for Region one in Kingston and St. Andrew and the Western part of St. Thomas; Region two will comprise four schools in Eastern St. Thomas, Portland and Eastern St. Mary; Region three will entail six schools in Western St. Mary, St. Ann and Trelawny; for Region four, six schools in St. James, Hanover, Westmoreland, will benefit: five schools in St. Elizabeth and Manchester will benefit in Region five; and Region six, will involve six schools in Clarendon and St. Catherine. The initial study will be undertaken by Kingston-based company CALA Telcom Services.

Trinidad says will send LNG to Jamaica

Trinidad and Tobago Prime will be sending liquefied natural gas to stimulate investments in Jamaica's alumina sector was now a matter of national priority. Trinidad and Tobago signed an agreement in 2004 to supply Jamaica with 1.1 million tonnes of LNG per year for 20 years, beginning in 2009, for use by the Jamalco refinery and the Jamaica Public Service Company's electric power plants. The Jamaican government owns 45 percent of Jamalco and Alcoa Inc (AA.N) owns the rest. The global financial crisis and sharp falls in metals prices have hurt Jamaica's alumina sector, with some refineries cutting production. Trinidad and Tobago hopes to enter into an arrangement for Jamaica to supply alumina for Trinidad and Tobago's first aluminum smelter plant. Trinidad and Tobago, through the Atlantic LNG plant, also exports LNG to the United States, Europe and the Dominican Republic. New technological developments in regasification have also allowed it to export gas to Brazil and Chile. Atlantic's four processing trains cool natural gas to convert it to liquid for transport, and have a total production capacity of 15 million metric tonnes a year. It is regasified at terminals for transport ashore through pipelines.

Landmark geothermal conference

The first ever geothermal conference in the Eastern Caribbean at the end of June is expected not only to attract at least 75 participants from international agencies but by extension would aid the tourism industry on Nevis. Permanent Secretary in the Ministry of Natural Resources and the Environment in the Nevis Island Administration (NIA) Ernie Stapleton told the Department of Information on Tuesday that the three day event (June 30-July 2), will draw key players in geothermal development that would stay at the island’s hotels in proximity to the venue at Mount Nevis Hotel. The event replaces a postponed international conference that had been planned for the more spacious Four Seasons Resort prior to the damage the facility sustained from the passage of Hurricane Omar in 2008. Notwithstanding, Stapleton explained that the total cost of the conference would not be shouldered by the NIA. The Permanent Secretary explained that UN ECLAC would fund country representatives along with the CREDP-GTZ and therefore would send invitations directly to the related countries. The NIA and WIP have invited others. He said sponsorship had also been secured from companies that were directly related to various aspects of the geothermal development on Nevis. NEXAN the company that will lay cables and Turbo Care a subsidiary of Siemens, who are constructing the geothermal plant, will finance lunch and coffee breaks on day one and two of the event.

Stapleton further explained that the University of Auckland based in New Zealand would provide its experts minus the usual registration fee .

The conference in Stapleton’s view, would not only provide an opportunity to inform the rest of the Caribbean on Nevis’ geothermal development and provide a springboard for linkages with those involved in various areas of geothermal development but would also expose local personnel to related issues involved in the process.

picture inset: A view of the geothermal steam venting from the Nevis 3 borehole at Hamilton during a testing session.

Geothermal evaluation in Montserrat

A contract was signed on Wednesday between the government of Montserrat and EGS, Inc, an American firm for Phase 2 of geothermal exploration on the island. In January 2008, the Department for International Development (DFID) approved a budget of up to approximately £800,000 to fund a phased evaluation process consisting of:

Phase 1: Scoping survey – to define the scope of the further investigations required;

Phase 2: Geophysical, geological and geochemical investigations culminating in
               recommendations for locations, size and depth for investigatory drilling;

Phase 3: Small diameter test drilling to attempt to prove the resource.

Chief Minister, Dr Lowell Lewis and the Minister of Communication and Works, Charles Kirnon, who witnessed the contract signing event, were both full of praise for the Communications and Works department staff, relevant institutions and other individuals who were very instrumental in bringing the process this far.

The funding for Phase 2 is approximately US$250,000. Exploration activities will take place in areas around Cork Hill, Richmond Hill, Foxes Bay and Sturge Park.

Cuban oil exports

Oil exports are now Cuba's second leading export, overtaking pharmaceuticals, and produced $880 million in revenues in 2008, according to a Foreign Trade Ministry report. A table in the report, parts of which were seen by Reuters this week, said nickel accounted for 39 percent of exports, oil for 22 percent and pharmaceuticals 9 percent, followed by sugar and tobacco products each at 6 percent and other products 18 percent.

The government reported exports, excluding tourism and other services, were $4 billion in 2008, but has yet to publish any details.

Cuba consumes a minimum of 150,000 barrels per day in petroleum products, of which up to 92,000 bpd comes from regional energy giant Venezuela. The rest is pumped from the northwest coast along with natural gas for power generation. Cuba has exported small amounts of the heavy crude it produces, but this would not account for the big jump in 2008 exports, local and foreign analysts said.

Venezuela's state-run Petroleos de Venezuela SA (PDVSA) reported on Tuesday it delivered 115,000 bpd of crude and refined products to Cuba in 2008, of which 93,300 bpd were sold to Cuban state-run oil monopoly Cubapetroleo, or Cupet, and 27,500 bpd was PDVSA's equity share delivered to the refinery in Cienfuegos.

As part of bilateral integration efforts, Venezuela is revitalizing Cuba's downstream operations and plans to use the island as a bridge to supply the Caribbean with crude and derivatives with preferential financing.

Meeting of PETROCARIBE Energy Ministers

June 11 is scheduled for a Meeting of Energy Ministers from the PetroCaribe member states in St. Kitts. The Ministers are expected to discuss matters of common interest and, in particular, areas of cooperation.

The Ministerial meeting will serve as a prelude to the 6th PetroCaribe Summit on June 12 in St. Kitts, which is expected to be attended by some 18 Heads of State from the PetroCaribe region, including Prime Minister of Jamaica, Hon. Bruce Golding, and the President of the Bolivarian Republic of Venezuela, His Excellency Hugo Chavez.

Under the PetroCaribe agreement, Venezuela provides oil on preferential terms to Cuba, Honduras, Guatemala, the Dominican Republic and every CARICOM nation, except Haiti, Barbados and Trinidad and Tobago. The PetroCaribe agreement was signed in June, 2005.

Exploration revival for Bahamas oil

New seismic and drilling technology could transform offshore Bahamas into a new hub for oil activity after it signed an exploration deal with Norwegian major StatoilHydro. Under the agreement, StatoilHydro will become operator of three offshore exploration licences in the Cay Sal region in south-western Bahamas -- some 150 km to the east of Cuba's oil producing region in the Caribbean Sea. BPC, is a company which has a number of offshore permits in the Bahamas.

Five sugar factories - Monymusk, Frome, Bernard Lodge, Innswood and Duckensfield - and the Petrojam ethanol plant are to be sold to the Brazilians. The Jamaican government had put in place transitional arrangements for the commencement of the 2008/2009 sugar-crop while negotiations continued. Arrangements are currently being finalized with Wray and Nephew and Worthy Park estates to accept and process some of the cane to be reaped by private cane farmers registered to Frome and Bernard Lodge. Wray and Nephew and Worthy Park operate privately-owned sugar factories.

Infinity Jamaica Ethanol and Clean Energy Limited, has applied to the Office of Utilities Regulation (OUR) to supply 15-17 megawatts of electricity to the national grid using biomass - sugar cane bagasse. The electricity is to come from co-generation facilities at two of the five SCJ plants that Infinity hopes to buy from the Jamaican government - Frome and Moneymusk . The facilities are expected to generate electricity for about 80 per cent of the year. Co-generation will come from the steam produced as a byproduct of generating electricity to meet its own demand. Petrojam’s E10 launch is currently using feedstock imported from Brazil with an anticipated switch to local feedstock once Infinity has been able to raise productivity levels in the sugar industry and the five SCJ plants.

This should facilitate Jamaica’s goal of increasing the contribution of renewable sources to the electricity sector from the current level to 10 per cent by 2010 and 15 per cent by 2020. Renewables currently account for approximately 12.2 per cent of total energy demand including six per cent of electricity demand.

A two-day biofuels policy workshop was held in Kingston, Jamaica on December 5, 2008. The workshop attended by stakeholders from the Caribbean and Latin America, was hosted jointly by the Ministry of Energy, the Petroleum Corporation of Jamaica (PCJ), and the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC). The theme of the Workshop was: 'Formulating Public Policies for Biofuels'.

It aims to introduce the Goals-oriented Project Planning (GOPP) methodology for public policy development. Discussions and presentations featured:

• Bio-fuels scenario and challenges in Jamaica.
• The role of ECLAC in strengthening co-operation on bio-fuel development.
• The main and common obstacles in formulating policy.
• Perspectives on bio-fuels in Latin America and the Caribbean.

Dominica has again reduced the price of petroleum products to consumers. This is the sixth for the year 2008 with the last reduction on November 21, 2008. Consumers were paying less to fill their gas tanks, paying EC$9.09 for a gallon of gasoline, down 96 cents; $10.04EC for diesel and $8.83 EC for kerosene. The reduction is 9.5% or 96 cents per gallon in the case of gasoline as compared with the previous $10.05, 6.7% or 67 cents per gallon for diesel and 7.7% or 74 cents per gallon for kerosene. The total reductions since June 20, 2008 stand at $6.60 per gallon, $5.93 per gallon and $6.04 per gallon for gasoline, diesel and kerosene respectively.

A reduction in the price of liquefied petroleum gas was also seen with consumers paying $128.19 per 100 lb cylinder, $39.46 per 30 lb cylinder, $36.25 per 27.5 lb cylinder and $26.64 per 20 lb cylinder. This is the lowest that prices have reached since the implementation of the new LPG pricing and taxation formula on October 10, 2005.

The prices announced previously on October 24, 2008 were $165.83 (100 lb cylinder), $50.75 (30 lb cylinder), $46.60 (27.5 lb cylinder) and $34.17 (20 lb cylinder).

The government removed the Excise Tax which was applied to Liquefied Petroleum Gas as part of its effort to minimize costs to the consumer. The Excise tax which was implemented on March 1, 2006, had been fixed at $0.45 per kilogram. This translated to 20 cents a pound or $4.08 per 20 pound cylinder.

Guyana announced a further reduction in fuel prices following the October last reduction. Gasoline is expected to be retailed at GY$555 (US $2.77) per gallon, diesel at GY$696 (US$3.48) per gallon, and kerosene at GY$477 (US$2.39) per gallon. This represents a 43 percent decline in gasoline prices, a 30 percent decline in diesel prices, and a 47 percent decline in kerosene prices.

Venezuela and Cuba have signed agreements recently to expand Cuba's oil-refining capacity. The signing took place in Caracas, Venezuela and include the expansion of the refining capacity at the Hermanos Diaz refinery in Cuba to 50,000 barrels a day from the current 22,000 barrels.

CGX Energy Inc. has announced that shooting of the 536 sq km 3D seismic survey on CGX's 100 per cent Corentyne Petroleum Prospecting Licence (PPL) located offshore Guyana has been completed. The seismic survey is being undertaken at a cost of US$16 million. The programmes are to be funded by CGX from existing working capital. CGX commenced the seismic shoot in mid October 2008. A report states that at a best estimate of prospective resources in four prospects on the company's Corentyne PPL may yield some 2.7 billion barrels of oil. The area where the exploration is being conducted was under dispute with Suriname, but a UN Tribunal ruled in favour of Guyana, paving the way for the exploration.

Jamaica saw the installation of 12 solar lights around the playing field at the Red Hills Road Multi-purpose Park. The lights, valued at $3 million, were sponsored by the Rotary Club of Kingston and Gormann Corporation, a company which provides alternative energy supply systems.  The project seeks to transform the dust bowl and makeshift playground that was the source of respiratory illness among students and residents, into a recreational park. The facility boasts a cricket pitch, underground irrigation system, and a community centre.

The Jamaica Automobile Association's (JAA) 'Make Cars Green' global initiative was launched in Kingston on December 10.  The 'Make Cars Green' initiative, which is spearheaded by the International Automobile Federation (FIA), aims to reduce the impact of cars on the environment, by encouraging ecologically sound motoring. In keeping with the initiative, motorists are encouraged to adopt a number of energy saving measures including purchasing energy saving vehicles, checking tyre pressures frequently, reducing load, saving on air conditioning, and keeping speed constant.

The Government moved ahead with plans for the country's energy policy, which was tabled in Parliament on Tuesday.

OMEL Energy Trinidad and Tobago Limited, a subsidiary of ONGC Mittal Energy, plans to invest US$500 million in searching for oil and gas including the exploration of five natural gas wells and building production facilities over the next four years.  OMEL and state-owned oil company Petrotrin on December 30 signed a contract with the government for the gas-prone North Coast Marine Area (NCMA) Block 2 which is located in water depths that averages 150 metres and comprises 98,669 hectares. The Block is within a prolific dry gas province in which a productive hydrocarbon system has been established and is on trend with the Northern Venezuelan dragon gas field and a couple gas discoveries made in 2008. Over the next four years, the joint venture plans to carry out the acquisition of 986 square kilometers of full fold 3D seismic and the drilling of at least five exploration wells to depths ranging from 9,000 to 13,500 feet. Petrotrin would be a 35 per cent partner with OMEL in NCMA 2. The pre-bid screening studies provided to the company showed a high potential for hydrocarbon discoveries in the block.

The Government of St. Kitts and Nevis has approved a proposal for the generation of wind energy on St. Kitts. The proposal was jointly submitted by a local interest and a group of foreign investors. Cabinet also mandated the establishment of a renewable energy unit to fast track and coordinate the development and use of renewable energy. The unit will work closely with the newly approved wind developers as well as with West Indies Power (Nevis) Ltd, the geothermal company on Nevis. A letter of intent was also signed between the government and the West Indies Power (Nevis) Ltd as an agreement in principle to acquire cheap geothermal electricity once the source becomes fully operational.

Effective November 21, 2008, Dominican consumers will be paying less to fill their gas tanks, following Government’s decision to drop prices in keeping with the fall in price on the international market. Motorists will now pay $10.05 for a gallon of gasoline, down by $1.96; $10.76 for diesel and $9.57 for kerosene. The price of gasoline was reduced by 16.3% or $1.96 per gallon below the previous level of $12.01, diesel decreased 11.9% or $1.46, while kerosene dropped by 15.2% or $1.71. The cut in fuel prices comes as a result of recent declines in world oil prices, which are down about US$96.20 from an all-time high of above US$147.00 a barrel in mid July.

A symposium on 'Options for Jamaica's Energy Security: A Focus on Waste to Energy Conversion' was held at the Courtleigh Hotel in Kingston Jamaica. One of the purposes of the symposium was to promote private and public sector cooperation between The Red Energy Group - a United States-based alternative energy company that specializes in the development and delivery of renewable energy technologies and Jamaica.

The Red Energy Group has a Catalytic Depolmerisation Procedure (CDP) technology, which converts waste materials to fossil free fuel. The group is exploring the possibility of constructing a waste-to-energy plant in Jamaica, capable of supplying the national grid with 3.5 megawatts (MW) and producing an environmentally friendly diesel, which is superior to regular diesel.

The Office of Utilities Regulation (OUR) in Jamaica has approved three renewable energy projects totalling 10.67 megawatts (MW), with the electricity to be generated from wind, hydro and waste - the first of its kind in Jamaica. They include a 1.3 MW waste conversion plant to be located at Riverton Waste Dump in Kingston proposed by HGC Capital Limited of the British Virgin Islands: a 6.37MW expansion of the 6MW Maggotty hydropower plant in St Elizabeth and a 3MW wind farm at Munroe both proposed by the Jamaica Public Service Company (JPS). The JPS projects will cost a total of US$38.7 million.  The development will boost the contribution of renewable energy to the 817.75MW national grid from a current level of six per cent to 10 per cent by 2010 and 15 per cent by 2020.

Cuban Central Petroleum Perforation and Extraction Company celebrated the arrival this Thursday at the one million tons of crude oil (7 million barrels) extracted in their facilities during 2008. It is the fourteenth time that they have reached this figure in a 12 month period, a 14 percent increase from what they achieved last year. This contribution added to the almost 400 million cubic meters of gas.

Dominica signed three financing agreements for a 4 million euro grant, with the Agence Francaise de Development (AFD) and the Fonds Francais pour l’Environnement Mondial (FFEM), for the further development of the geothermal energy project in the Wotten Waven area of Dominica.  The AFD will provide a total of 1.5 million euros under its export assistance programme - PRCC (Programme de Renforcement des Capacites Commerciales) and 500,000 euros under its technical assistance and studies programme, FERC (Fonds d’Etudes et de Renforcement des Capacites). The FFEM will contribute 2 million euros, which will be used to create the research and feasibility studies required under the project.

In December 2007, the Government of Dominica, through the National Authorizing Office, signed a financing agreement with the European Commission, who committed an amount of 1.5 million euros towards the Geothermal Energy Development programme. These funds are combined with the funds committed by the AFD and the FFEM to total five million, five hundred thousand (5,500,000) euros. Activities under this multi-donor financed “European Union” led geothermal resource development project are set to begin immediately following the conclusion of the research activities under the INTERREG III B, which is currently in progress, and which are due for completion at end of November 2008.

The combination of funds is to be applied to activities in respect of the wider geothermal energy development project as follows:

The funds allocated by the European Commission shall be applied to the characterization of the geothermal resource in the Wotten Waven resource area, and in particular to the test drilling activities. The funds allocated by the AFD-PRCC (Trade and Capacity Building Programme) shall be applied to the completion of the identification of the geothermal resources at the Wotten Waven site; carrying out additional prior studies for the construction of the geothermal plant and electrical interconnection with Guadeloupe and Martinique; and the preparation of the structure of the public-private partnership for the development of the project, and launch the call for tenders for the selection of the concessionaire.

The funds allocated by the AFD- FERC (Fonds d’Etudes et de Renforcement des Capacites) shall be applied to expert services and capacity building in respect of technical and feasibility studies and expert services for project identification, project feasibility, and sectoral or institutional studies; financing of resident technical assistance in charge of the identification or preparation of the financing of the AFD in the sectors of concentration; and studies and periodic on-site technical assistance on other related matters.

The funds allocated by the FFEM shall be applied to complete the identification of the geothermal resource at the Wotten Waven site; carrying out detailed technical and economic studies necessary to determine the appropriate size, and in respect of the construction of the plant and electrical interconnection with Guadeloupe and Martinique; and preparing the partnership mechanism of the public-private partnership for the development of the project and launch of the call for tenders for the concessionaire.

The Petroleum Corporation of Jamaica (PCJ) in conjunction with the Jamaica Millennium Motoring Club (JMMC) presented the E10 Invitational Launch.  The Ministry, in collaboration with the JMMC, utilised the most suitable means to introduce motorists to the E10 brand. The event, filled with different kinds of entertainment including motorcycle stunts, a para-glider and a Classic Car showcase, was by and large a sprint event featuring high-powered race cars from multiple classes traversing two laps around the Stadium. For the first time in years spectators were graced by the presence of a Dover purpose-built RX7 piloted by Peter 'Bull' Thompson who captured the Thunder Sport title at the recently held Dover Heroes Meet.

A workshop on Relevant Renewable Energy Resources and Technologies-Training Teacher was sponsored by the GTZ/CREDP, the United Nations Educational Scientific and Cultural Organization in collaboration with Cariscience and the Nevis Island Administration. This initiative was to educate the teachers in the area of renewable energy, after the University of the West Indies St. Augustine Campus had taken the decision that the population of the Caribbean needed to be educated on the idea of alternative energy sources and the use of teachers was generally accepted to spread the message.  The objective was to educate the Nevis population through the use of electronic and print media and visits schools which engaged the students through the use of a slide presentation on geothermal energy. This was followed by discussions.

Barbados Light & Power Company (BL&P) "non-residential" customers would pay 12.2 cents less for a kilowatt hour (kWh) than they did in October and residential ones a "small amount" of .3 cents for the same kWh. The fuel clause adjustment has been reduced to 23.2598 cents, or .3 of a cent lower than the subsidized level of 23.5375 cents implemented last year. Back in August, businesses registered a 16 cent rise in their bills. It was in last November that BL&P customers started paying more for electricity.

Jamaica is projected to save some US$92 million on its energy bill annually as a result of the introduction of E10 blended gasoline. Approximately 90 per cent of the vehicles currently being operated in the island are compatible with E10. Motorists who consistently use the higher 90 Octane blend are being encouraged to revisit their motor-vehicle manuals to ascertain whether their units can utilize the E10/87 blend. Over 100 service stations have been certified by the Ministry of Energy, and the Bureau of Standards Jamaica (BSJ), to dispense E10. Work is currently being carried out on the construction of a petroleum distribution facility in Montego Bay, St. James, which is expected to be completed for the phased E10 roll-out in that region comes next April.

Brazil has signed a multi-million-dollar deal to explore for oil off the Cuban coast. The deal between Brazil's state oil giant Petrobras and Cubapetroleo is the latest offshore front.  Petrobras will operate a 1,600 square kilometer bloc in Cuban waters in the Gulf of Mexico, at a depth of 500 to 1,600 meters, off the coast of the province of Matanzas east of Havana. Petrobras will start its investment with eight million dollars, and can explore within a seven-year period, while having 25 years to pump, for oil to be found. Petrobras is among the companies looking for oil in Cuban waters in the Gulf of Mexico with over 112,000 square kilometers divided up into 59 blocs in 1999.

Seven months after the Petroleum Corporation of Jamaica (PCJ) started an ambitious $8 million energy planting project at its Font Hill farm in St Elizabeth, to produce 400,000 barrels of bio-diesel fuel for the country by 2010, the agency charged with finding alternative energy sources to oil has begun seeking suitable lands and farmers interested in investing in the project.  The project started in March this year, with PCJ, planting one acre of high-yielding Castor beans. Five months later over 3,000 lbs of the oil seeds were reaped. These are now being tested at the Bureau of Standards laboratories.  Some 5 local farmers with large land holdings have come forward and expressed an interest in entering bio-diesel production.

The Government of Guyana and the Esso Exploration Guyana Ltd signed a supplemental agreement and addendum to the existing Petroleum Prospecting Licence and Petroleum Agreement reaffirming the parties’ commitment to the oil exploration.  The commitment, known as Stabroek Block will see the rescheduling of the licence term during which Esso’s work obligation will be expected to be undertaken. Esso is required immediately to acquire a regional 2D seismic target area. The oil exploring company acquired its licence to explore in 1999, but work was discontinued because of the border dispute between Guyana and Suriname, which has since been resolved by Arbitration of the Permanent Court in accordance with the United Nations Convention on the Laws of the Sea.

Preparatory work has begun for the construction of a multibillion-dollar oil refinery in St. Lucia by the global energy company, Hess Corporation. The refinery, expected to cost more than US$5 billion, is to be built at Cul de Sac, an area 12 miles west of the capital. Hess Corporation, a leading global independent energy company, has been engaged in the exploration and production of crude oil and natural gas, as well as in refining and in marketing refined petroleum products, natural gas and electricity.

Mincenco is to set up a coal co-generation plant in St Ann, to generate power for the bauxite plant at Discovery Bay. Jamaica is adding coal to its energy mix to help cut back on the US$2 billion oil bill that the country wracks up annually.

The Government of Saint Lucia has approved the continuation of the Energy Saving Light Bulb Project to be executed through town and village councils, community voluntary groups and national clubs.  A committee under the chairmanship of the chief electrical engineer in the Ministry of Communications, Works, Transport and Public Utilities will be established with representatives from several Ministries. The Committee is expected to develop an implementation plan for the distribution of the 1ight bulbs to domestic households in all remaining communities on the island.  Last year, the pilot phase of the project was implemented in the villages of Anse-La-Raye and Canaries where 1638 households or 3.4 percent of the 47,713 total households in Saint Lucia were visited.

Guyana is among ten other countries to become part of the World Bank’s Forest Carbon Partnership Facility (FCPF), as the bank announced its expansion of the FCPF of developing countries from 20 countries to 30, as tropical forested countries seek to build capacity to reduce greenhouse gas emissions by reducing deforestation and forest degradation (REDD).  The 25 developing countries selected so far to benefit from the FCPF are working with 11 industrialised countries and one non-governmental organisation in an innovative partnership and international financing mechanism to combat tropical deforestation and climate change. The World Bank has committed US$2.3 million start-up expenses for the Facility, while the 11 industrialised countries and the non-governmental organisation have pledged about US$169 million. Other developing countries accepted into the Facility include 10 in Latin America (Argentina, Bolivia, Colombia, Costa Rica, Guyana, Mexico, Nicaragua, Panama, Paraguay and Peru).  Guyana has been leading a long battle for Caribbean and South American countries with standing forests to be compensated for their carbon contribution to mitigating climate change.  The Guyanese government had also committed 100 million acres of its rainforest to CI to conduct studies and to be used as a model for other countries in forest sustainability programmes.

Customers in Jamaica can expect to see at least a 10 per cent reduction in their energy bills in November. A significant plunge in the cost of oil on the world market has resulted in a drop in the cost of fuel purchased to date for the production of electricity in October. The billing exchange rate is expected to be $74.36 for November compared to $72.68 for October. The fuel rate that appears on customers' bills each month is determined by the cost of the fuel used to generate electricity in the previous month.

The first round of the $300 million E10 project roll-out is set for November 1, but with only half the gas stations within the designated zone equipped to pump the cheaper, ethanol-enhanced fuel. Only 100 of the 200 service stations in the roll-out zone, which extends from St Thomas in the east to Manchester and St Ann in the centre of the island, are ready. The delay in readying service stations was due in part to the limited availability of technical expertise to do the modifications. For now it is optional to use E10, but it will become mandatory in April 2009 - a move that is expected to save the country an estimated $2.3 billion annually. Motorists who use E10 will be able to switch between fuel types. Replacing MTBE in petrol with 10 per cent ethanol will require an estimated 72 million litres of ethanol annually, which is to be supplied by the new owners of the divested sugar factories.

The Government is in negotiations with Infinity BioEnergy Limited out of Brazil, which was selected after a bidding process for the US$25 million deal.
Infinity will be required to supply all the ethanol needed for E10 fuel.

The Government had allocated some $300 million to launch the project, a major portion of which went to installing a new storage tank at Petrojam, as well as to retrofit its loading facilities to facilitate delivery of E10. A small portion of the sum was allocated for public education and promotion.

Consumers in Dominica will benefit from further relief in the cost of fuel at the pump, and liquefied petroleum gas commonly referred to as ‘cooking gas’, following government’s decision to drop petroleum prices in keeping with the fall in price on the international market. With effect October 24, 2008, motorists will pay $12.01 for a gallon of gasoline, a 16.1% decrease or $2.31 from the existing level of $14.32; $12.22 for diesel and $11.28 for kerosene, representing 76 cents and $1.61 reductions respectively. In addition, users of cooking gas will now pay $34.17 per 20 lb cylinder, a 10.7% or $4.07 cut from the current price of $38.24.

The adjustment in prices is in keeping with Government’s policy to pass on the benefits of any decrease while shielding consumers from price increases and controlling inflation. Gasoline and diesel prices have fallen 23.4% from their June 20, 2008 peak of $15.69 and $15.97 a gallon respectively, whilst kerosene has dropped by 24% from $14.87. The customs service charge applicable on petroleum products will continue to be at zero and for future increases in the price of petroleum products shall not be a factor in the wholesale and retail prices.

If the 3% customs service charge were to be applied, the new prices for gasoline, diesel and kerosene would, in fact be, $12.24, $12.48 and $11.56 per gallon, respectively. Similarly, the price of cooking gas would have been higher had Government not acted on its decision to remove the excise tax. If the excise tax ($0.45/kg) were to be included, the new price per 20 lb cylinder would therefore be $38.25.

Effective October 24, consumers in Grenada will have to pay a total of $15.65/IG for gasoline compared to that of $13.26/IG previously paid. The price of diesel has jumped from $13.92/IG to $16.45/IG but the price of kerosene has been reduced from $11.48/IG to $11.21. Over on Carriacou, the gasoline price will be increased to $15.81 from $13.42, diesel from $14.07 to $16.61, while a 27 cents reduction on the kerosene price brings the cost down to $11.38. In Petit Martinique as of Friday the price of gasoline will be increased to $12.81 compared to the old price $11.42, diesel will carry of price tag of $13.61 compared to the old price of $12.07. There is also a 27 cents reduction in the price of kerosene bring the total price $11.38. The government release reported that the new retail prices are largely based on the average FOB costs; that is ex-refinery prices, for the period, July 8 - August 31, 2008.

Prior to the implementation of these price changes, the government held consultations with key stakeholders including the Bus Associations, Trade Unions Council, Bakers’ Association, Non-Governmental Organizations and the Multipartite Consultation Committee. The objective of these consultations was to explain the rationale for the increases and to seek suggestions and support to minimize the impact of these increases on the population. If the downward trend in crude oil prices continues, the government anticipated that with there may be reduction in the price of petroleum products at the next review in December.

The Government of Dominica in collaboration with the European Union, The Regional Council of Guadeloupe, the Agence Francaise de Developpement and other French development partners is forging ahead with plans to exploit the country’s geothermal resource.  The first Project Steering Committee Meeting for the Geothermal project was held recently and was attended by Minister for Energy, Charles Savarin, Permanent Secretary, Vincent Philbert, Senior Project Officer in the Ministry of Public Utilities, Michael Fadelle, National Authorizing Officer of the European Development Fund, Edward Lambert, Paul Mondesir from the Office of the European Commission in Barbados and officials from DOMLEC, the Independent Regulatory Commission and the Private Sector. The government of Dominica is pursuing the development of the country’s geothermal resource in two phases.

The first, the preliminary phase, is entitled: Geothermal Energy in the Caribbean Islands. A transnational partnership agreement with the Regional Council of Guadeloupe, the Regional Council of Martinique and other French development partners financed under INTERREG III B, was signed in April, 2008. Funding under INTERREG III B is coming from regional development funds from the European Union. According to Charles Savarin, this preliminary phase of the project involves geological, geophysical and geochemical analyses and related environmental and feasibility studies of the geothermal resource in Dominica.

A report due by the end of November, 2008 is expected to provide the following information:

• The nature and quality of the geothermal resource in the Wotton Waven area
• Provide a preliminary analysis of the environmental impact of the proposed project
• Provide a preliminary analysis of the legal and institutional framework of the project
• Revise and update an economic assessment of the project which was prepared in 2005 under an OAS funded feasibility study exercise
• The exact locations in the Wotton Waven area to drill

The second phase, the more comprehensive one, is entitled: “Preparation of a Geothermal-Based Cross Border Electrical Interconnection in the Caribbean”. It is being financed by the European Union, the Agence Francaise de Developpement and the Fonds Francais pour L’ Environment Mondial (FFEM). The sum of 1.5 million Euros is expected to come from the European Union. 2 million Euros will come from AFD, 2 million EUROS from FFEM and a possible 3 million Euros from the European Investment Bank (EIB).

The Financing Agreement with the European Commission for this phase of the project was signed in January, 2008. It is a three year project and is intended to achieve the following:

• A determination as to whether the geothermal resource in the Wotton Waven area is technically suitable for generating significant volumes

   of electricity

• It will further determine the feasibility of the proposed underwater transmission and interconnection to supply the French islands of

  Guadeloupe and   Martinique
• The preparation of an investment prospectus for the proposed development and undertake test drilling in those specific areas identified

  by the investigations under the INTERREG III B funded component of the project to establish the best locations for siting the

  power production platforms
• The provision of technical assistance and project management services for the Programme Management Unit(PMU) to coordinate

  and monitor the implementation and progress of the project activities
• Technical assistance to be provided in respect of policy, environment and regulation, communication, public relations and monitoring.

The geothermal project is intended to transform Dominica from a high price supplier of electricity to one of the lowest cost providers in the region, a major boost for existing operators and potential investors. It is also meant to at least minimise the country’s dependence on petroleum based products.

The salient point that the total commitment of 8.5 million Euros leads to, but does not cover, the commercial exploitation of Dominica’s geothermal resource. It is expected that it would cost in the region of US$350 million for the full commercial exploitation of the resource. By the end of the European Union funded project, the Government is expected to have all the technical, economic and financial information to interest potential investors in exploiting the geothermal resource of Dominica. The intention of Government is to develop a Public/Private partnership for the development of the island’s geothermal resource.

The Camilo Cienfuegos refinery, located in Cuba's Cienfuegos province, will soon have a new 50,000 cubic meter tank, as part of a group of a series of new investments. This deposit will increase the refinery’s storage capacity, which already has four 20,000 cubic meter tanks under construction. The assembly of the second part of the smart system of the refinery will start with 54 chambers, as well as the starting up of new boilers, the building of a central dinning room and a 64 room building for workers. This refinery should close October with over 16 million barrels processed.

The $1-billion Development Bank of Jamaica (DBJ) - Petrocaribe SME Energy Fund was launched to help renewable energy projects among small and medium-sized enterprises. Companies can borrow funds from the PetroCaribe Fund of up to $5 million, representing no more than 75 per cent of a project's cost, at a fixed rate of 10 per cent repayable over seven years. Institutions can borrow at a lower rate of seven per cent. The funds are to be on-lent via approved financial institutions (AFIs). DBJ was in dialogue with international lending institutions to ensure the long-term sustainability of the fund. Each project which receives funding must have an approved energy audit carried out. The University of Technology (UTech) has partnered with the fund to train and certify energy auditors.

Institutions are classified as follows:

• Small enterprises with an asset base of between US$10,000 and US$100,000 and an annual turnover of between US$125,000 and US$1 million. Employment levels not exceeding 50 persons.
• Medium enterprises with an annual turnover of between US$1-4 million. Employment levels are between 50-150 persons.
• Small hotels between 10 and 100 rooms. Employment up to 150 persons and annual revenues not exceeding US$4 million.

The Belize government and Taiwan’s largest state-owned oil refinery, the Chinese Petroleum Corporation (CPC) signed an exploration agreement. The planned agreement would allow Taiwan to drill in a 4,800 square kilometer area in Belizean waters and usher in a new era of relations between the two countries. Taiwan has been an adviser to the Belize government on offshore petroleum resources, and all indications are that Taiwan is confident that it will find or has already found oil. The agreement to build a refinery in Belize is another indication that the petroleum deposits are substantial.

The long-awaited Amnaila Falls Hydro Electric Power (AFHEP) project in Guyana is now expected to get underway during the first quarter of next year once there is a financial closure with a number of private and public sector partners. Once the US$400-US$500 million Kuribrong River project gets underway it is expected to be completed within three years. Phase 1 will involve the installation of 154 megawatt capacity; the installation of 278 km of double circuit 230 KV lines; and the construction of 85 kilometres of new access roads. Financing for the project would be derived from an equity financing contribution of about 25 to 30 percent of the cost for which Sithe Global Power has committed 100%.  Sithe Global (a subsidiary of Blackstone -- the largest private equity fund in the US) started due diligence on AFHEP and Guyana in 2006 and it has committed all the equity required to build the project after completing the technical and commercial due diligence.

Developers Dewdrop Homes Jamaica Limited has been given permission to construct Les Grande'ur Country Club, a five-townhouse four-apartment development located at Patrick Heights in Red Hills, St Andrew. The site was chosen for its favourable wind and solar energy potential. The homes will be about ten per cent more expensive than similar homes that lack the renewable energy technologies. One unit has already been sold and the project is generating interest among other potential buyers. Renewable energy will supply between 400-500 kilowatt hours per month to the two-three bedroom townhouses and 300 kWh per month to the two-bedroom apartments. The project will provide 85-90 % of their electricity needs by way of solar panels and domestic-size wind turbines and other energy saving devices. Walls will be insulated with foam to reduce the need for air conditioning. Maintenance costs will be further reduced by the use of solar lighting throughout the development. Dewdrop is also in process of registering the project to earn carbon credits for the housing strata, which would reduce maintenance costs.

Government is examining the prospects for setting up a solar energy farm on the eastern side of the Hellshire Hills in Portmore, St Catherine. The PCJ and the Jamaica Public Service Company (JPS) also signed an agreement to construct a US$300-million, 100 to 120 Megawatt petcoke generation plant at Hunts Bay, scheduled to begin operation in 2013. Less expensive than oil, coke is a by-product of the refining process and will lower light bills on the island.

Guyana US500 million hydropower to get underway

The long-awaited Amnaila Falls Hydro Electric Power (AFHEP) project in Guyana is now expected to get underway during the first quarter of next year once there is a financial closure with a number of private and public sector partners.

Once the US$400-US$500 million Kuribrong River project gets underway it is expected to be completed within three years. Phase 1 will involve the installation of 154 megawatt capacity; the installation of 278 km of double circuit 230 KV lines; and the construction of 85 kilometres of new access roads. Hydro-electricity has been a long promised power option since the 1960s, but is yet to materialize. At present bids for engineering, procurement and construction are out to tender.

Alternative sources of energy high on agenda in Jamaica

The spiralling price of oil on the world market has significantly impacted Jamaica, forcing the government to explore alternative sources of energy. As a result several initiatives are being explored to come up with alternative sources, including ethanol, solar energy, wind, bio-fuel, as well as partnerships with local and international agencies.

Co-generation plant

The project will involve the construction of a 120-megawatt (MW) co-generation facility at the JPS' Hunts Bay plant, which will be run on petroleum coke (petcoke), produced by Petrojam. Petcoke is a blend between petroleum and bio-gas which costs less than a quarter of the price paid for fuels, such as coal. The project is estimated to cost US$500 million and will be completed by 2013.

The ethanol refinery situated at Rockfort in Kingston, which is jointly operated by the Governments of Jamaica and Brazil, will be taken over fully by the Government in May. This will be implemented as part of the Government's thrust to establish a domestic ethanol and, by extension, a renewable energy industry in the island. Jamaica has also been exploring for oil, adding to the possibilities that some would be found.

Energy Conservation Measures

Audits have been carried out in a number of Ministries and agencies and the necessary recommendations made with strict monitoring to ensure that they comply.  The National Water Commission (NWC) is being encouraged to use more energy efficient pumps and solar where possible. A booklet entitled, 'Energy Conservation Measures and Tips for Residential and Small Commercial Sectors', was produced by the Energy Division to assist in the campaign.

Down hydro plant impacts cost of electricity in Dominica

Inactivity at the Hydro power plant at Padu is one of the reasons for the high cost of electricity in Dominica. Prior to the passage of Hurricane Dean in August 2007, Dominica produced 35-40% of its electricity through Hydro power. Following the suspension of operations at Padu as a result of Dean, Dominica is now producing less than 25% of its energy needs from hydro. As a result of that more diesel is needed to make up for that shortfall.

Government plans to increase the country’s generating capacity by building a 15 megawatt plant in phases financed by the Government of Venezuela. It is expected that heavy fuel will be used thereby reducing costs.

Waste-to-energy project in Jamaica

The Government of Jamaica has invited proposals to set up the US$500 million (J$3.6 billion) waste-to-energy facility that would generate ethanol from waste. This plan would see the Government possibly purchasing garbage for the purpose of producing energy, while scaling down dumping at its current landfills and dumps. The Office of Utility Regulations is currently evaluating proposals from bidders for a contract to be be awarded by the end of the year.

Suriname maroon village affected by oil spill

Suriname has launched an investigation into the spilling of several thousand liters of diesel fuel into a river, which left a maroon village in the interior without drinking water. A gold mining company has accidentally spilled some 20,000 liters of diesel in the Suriname River close to the Bakaliba village.

“Villagers can no longer use the water to cook, wash or bathe.”  

So far checks which have been undertaken to establish the extent of the contamination reveal that the Flora and fauna in the affected area have so far not been affected by the spill. According to a report, during an attempt to unload a quantity of fuel from an oil tanker of the Sarakreek Resources Corporation, two tanks each containing 10,000 liters diesel fell into the river due to strong winds.  It has been reported that there was a large oil film on the surface of the river. Meanwhile the mining company has taken several initiatives to provide the Bakaliba village with potable water, while the National Coordination Center for Disaster Management (NCCR) is already on the scene to assess the situation.  The oil tanker that caused the oil spill has meanwhile been confiscated by the Suriname Maritime Authority (MAS).

Venezuela assists Saint Lucians

The governments of Saint Lucia and Venezuela met to discuss an offer from Venezuela of low cost housing units to Saint Lucia as well as the provision of technical scholarships to Saint Lucian students. The meeting also explored the possibility of yearly student exchange visits.

Regarding the PetroCaribe Agreement, Venezuela also agreed to make available a soft loan of US$ 3 million to the proposed Saint Lucia Development Bank for lending to its clients.

A technical team has been set up to finalize a Memorandum of Understanding between the two countries.

Nevisians to receive geothermal training

Geothermal training is in the works for Nevisians. The United Nations University Geothermal Training Programme (UNU-GTP) has operated in Iceland since 1979, with an aim at assisting developing countries with geothermal potential to build up or strengthen groups of specialists in most aspects of geothermal exploration and development. A number of professional studies in geothermal are available in Iceland and the Nevis Reformation Party (NRP) led Nevis Island Administration (NIA) is working towards getting interested residents of Nevis, to work towards degrees and certificates in this renewable energy resource to the island.

Presently there are no training courses for persons who do not have a first degree, but the (NIA) will be seeking to have a course of study put in place for those individuals who are interested but do not have a professional degree. The UNU-GTP offers courses in Geological Exploration, Borehole Geology, Geophysical Exploration, Borehole Geophysics, Reservoir Engineering, Chemistry of Thermal Fluids, Geothermal Utilization and Drilling Technology.  Geothermal training in Iceland is intended to provide participants with the ability to carry out independent execution of projects at home.

A six months course is available and includes an introductory lecture course, specialized training, carrying out of projects with report writing and a number of lines of specialization.

Fellowships are awarded to developing countries and some countries are financed by the government of Iceland. Fellowships for MSc studies are offered to the best students, and PhD Fellowships have become recently available.

Nevis Premier leads delegation to Iceland to study geothermal plants

The Premier of Nevis, Joseph Parry led a delegation to Iceland aimed at acquiring first hand experience of geothermal plants at work, holding discussions with geothermal plant operators, while at the same time meeting officials, including the Prime Minister and members of the government and the Icelandic International Development Agency(ICEIDA).  Iceland has had experience with the natural resource for over half a century.

During the two day mission, the Premier and his delegation met with a number of other agencies including: The National Energy Authority, the Icelandic International Development Agency and the Iceland GeoSurvey. The Nevis delegation also met with officials of educational institutions, such as the United Nations University which specializes in Geothermal Training, and the Reykjavik Energy Graduate School of Sustainable Systems. Premier Parry also held talks with private owned companies such as ENEX and Geysir Green Energy, both of which have a keen interest in geothermal.

The delegation gleaned a wealth of additional information when they toured a number of geothermal plants where senior officials made presentations on the history, development and operation of the said industries. It is expected that over the next few months, the Icelandic Government, through the National Energy Agency and the ICEIDA will provide technical assistance, consultancy and advice to the Nevis Island Administration (NIA). This will include a number of visits to Nevis, from experts in geothermal operations in Iceland.

Ethanol plant for Barbados

A new ethanol dehydration plant is proposed to be built at the Bulk Terminal Facility near to the Spring Garden Highway in Barbados. The project is to be undertaken by a Brazilian company - Etanol de Costa Rice SA. Williams Industries, a local company, will also be involved in the project. Construction is expected to commence by year end.  A number of potential effects the plant could have on the environment, include the production of waste water, water contamination from ethanol, and technical hazards such as fires and explosions.  The main purpose of the plant is to remove water from ethanol to make it usable as an automotive gas additive. The processed ethanol will then be exported to the US. Barbados has attracted the developers because of its location -- midway between Brazil and the US east coast, and also because off the existing deep port facility and its close proximity to an industrial site. The plant is expected to produce about 132 million gallons (500 million litres) of dry ethanol a year, refining ethanol imported from Brazil. The fuel is expected to be sold to the US through Caribbean duty-free concessions not available to Brazil.

Wigton Wind farm expansion project

Expansion is expected to begin on the Wigton Windfarm situated in Manchester, Jamaica in September this year. Nine wind turbines are to be added to the 23 installed. The nine turbines originating from Denmark will be supplied by Vestas Wind Systems and will add 18 megawatts (MW) of generating capacity to the 20.7 MW already installed at Wigton. A small portion of the funds will be tapped from the PetroCaribe Fund to expand the Wigton Windfarm.

The Petroleum Corporation of Jamaica opted to take on the project after failed attempts to bring private equity partners on board. The wind project will add 55 million kilowatts of electricity to the national power grid annually and reduce the petroleum import bill by US$3.2 million. The project will last for one year and the new equipment commissioned by 2010. A wind mapping project by the PCJ shows Portland, St Thomas, St Elizabeth and Manchester as possible wind sites.

New lights arrive from Barbados for Guyana airport

Night flights from the Cheddi Jagan International Airport will resume from Thursday evening following the arrival of 40 portable solar-powered lights together with back-up batteries from Barbados. The lights will complement the 30 additional lights that will power the runway area.

PetroCaribe countries also look at food security

PetroCaribe countries have agreed to promote national public investments and cooperation alliances among the member countries in the areas of agricultural knowledge and science and technology. The decision was taken at the conclusion of a meeting on July 30, 2008 hosted in Tegucigalpa, Honduras. The Ministers and Secretariats of Agriculture gathered in Honduras for the first Ministry meeting in the framework of the PetroCaribe member countries, in compliance to the mandates of the Heads of State and Governments in their meeting in Maracaibo, Venezuela on July 13, 2008 to discuss agro-food initiatives. The meeting also resolved to ratify that PetroCaribe, in accordance to the principles of the Alternativa Bolivariana par los Pueblos de Nuestra America (ALBA). It seeks to reach a higher degree of independence and social and economic development for the people, through the creation of financial instruments that seek the development of the agricultural sector and integral rural development that will guarantee the food security and sovereignty of our countries. Another resolution of the meeting was the consolidation of the Fondo Petrolero for food production as part of the initiative from ALBA to create compensatory funding to correct the disparities that put countries with weak economies at a disadvantage.

Venezuela would contribute $2 million for each of PetroCaribe’s 18 member nations to support urgent food projects. The PetroFood initiative, will be financed through the proceeds from the sale of oil. The fund is largely backed by a Venezuela promise to donate 5 US cents for every barrel of oil sold at a price above US$100. It is expected to provide US$400 to 500 million per year for farm development and other projects in Central American and Caribbean countries.

The fund will be oriented toward funding food production and innovative farming projects to face the food crisis caused by speculation and protection measures, like the subsidies from the developed countries, the use of food as a raw material for fuel, and the high cost of essential agricultural inputs to propel integral rural development, sustainable food production, and its distribution and exchange under principles of solidarity complementarities, cooperation, social justice, reciprocity and equity. The development of a bank of inputs and a support services network for agriculture and the rural area, with the distribution capacity to especially address the more vulnerable populations, stressing the farming and indigenous communities among others was also identified as priority areas of the new ALBA agricultural agenda. PetroCaribe countries are made up of states that signed on to the Caribbean alliance with Venezuela to purchase oil on conditions of preferential payment. Petrocaribe was formed in June of 2005.

Geo-thermal energy for Dominica

Dominica has granted a licence to the West Indies Power Dominica Limited (WIPD) for the purpose of developing the country's geothermal energy resources in the Soufriere/ Scotts Head area. The signing of an agreement between the Government of Dominica and West Indies Power Dominica Limited took place at the Fort Young Hotel on July 24, 2008. The benefits to be derived from this relationship will significantly reduce the cost of electricity for all consumers as well as act as a catalyst for the expansion of the economy in arase such as manufacturing, agriculture and aquaculture.

Phase One (exploration phase) will involve geochemical, geological and geophysical surveys to identify the geothermal fields and estimate the potential of the resources available in the south of the island. The estimated time for this phase is approximately eighteen months. The exploration phase will cost approximately $11 million ECD and will be funded by the private capital of West Indies Power Holdings (BV), parent company of West Indies Power Dominica Limited.

The next phase will see the construction of a 15 megawatt plant which should be completed in 12-16 months after the exploration phase has finished. The cost of construction of the plant is estimated at EC $120 million and is expected to be completed by the end of 2010. Dominica is expected to receive 10 percent equity stake in West Indies Power Dominica Limited. Dominica will also receive annual royalties of 3 percent on the domestic supply and 5 percent on export of the gross sales power including carbon credits. The implementation of the project “Preparation of a Geothermal-based Cross-Border Electrical Interconnection in the Caribbean" as well as the “Geothermal Energy in the Caribbean Islands Project” puts Dominica at the vanguard of international efforts aimed at the development of renewable energy resources.

The signing of a transnational partnership agreement between the government of Dominica and the Regional Council of Guadeloupe for the development of Dominica’s geothermal energy resources took place earlier this year. This agreement falls under the Geothermal Energy in the Caribbean Islands project.

West Indies Power Holdings BV is a St. Maarteen registered company formed in 2001. The company has already identified the geothermal resource in Nevis and hopes to supply power to St. Kitts and Nevis by the end of 2009.

More wind energy plants for Jamaica

Jamaica has plans to build three more wind energy plants at an adjoining property in Wigton (20 MW), Munro/Hampton (20MW) and Great Valley (40 MW) at a combined estimated cost of US$208 million.

These renewable energy projects have the potential to earn an estimated US$4 million annually from carbon credits.

TT Govt approves new energy schools

The Trinidad & Tobago government has approved a total of 28 scholarships to be offered in fields relating to energy and energy industries. These scholarships will be based on contractual arrangements between the Government and companies in the oil and gas sector. The scholarships will be financed from funds available under terms and conditions of production sharing contracts between companies in the oil and gas sector and the Government.

Smelter equipment for Trinidad and Tobago

EQUIPMENT IS on the way to Trinidad from China for the construction of the country’s first aluminum smelter plant.

Antigua gets support from Spain

Spain will fund the purchase and installation of several hundred street lights in Antigua  under a project called  “Light Up Your Neighbourhood” street lights programme. Spain is the third foreign partner -along with the governments of Libya and Morocco - to have contributed to this important initiative. 

Brazil's Petrobras studies oil potential in Cuban waters

Brazil's state-run oil company Petrobras is studying the possibility of oil exploitation in Cuba.  The studies are based on a cooperation agreement signed with the Cuban Oil Company (CUPET) at the beginning of 2008. The study will look at areas in Cuban waters in the Gulf of Mexico.

Petrojam Ethanol Ltd and Brazil

Petrojam, Jamaica’s  petroleum refinery, entered into an agreement with Brazilian firm, Coimex Trading, for the rehabilitation of its 40-million gallon ethanol production facility at Marcus Garvey Drive in Kingston back in 2004. The Brazilians, at the time, spent approximately three-quarters of the cost or some US$7.34 million on the project. As part of the agreement the 49 per cent stake that was held by the Brazilians would go back to the government after three years of operations.

The ethanol plant began operating in 2005 but has not been in production consistently since.

Price increase in Barbados

Barbadians recently experienced price increases in kerosene, diesel, liquified petroleum gas (LPG) and gasoline.  As of April 16, Gasolene moved from $2.15 per litre to $2.67; diesel from $1.46 per litre to $2.57 and kerosene from $1.37 per litre to $1.51. LPG 100-pound cylinders moved from $144.75 to $188.15, the 25-pound cylinders increase from $38.76 to $49.63, while 20-pound cylinders goes from $31.01 to $39.70.

 

The public was promised  measures to come to help manufacturers, farmers, fishermen, public transport operators and the poor cope with these  price increases.

Price increases in Belize

Belizeans experienced  sharp increases in the prices  of Gasoline, Kerosene and Diesel even though the Government has decided to absorb half of the increase in the cost of gasoline, and only  pass on half to the consumers.

As of March 23, 2008,  the new Price for Premium Gasoline is  $9.95 per gallon while the new Price for Regular is $9.70.  Kerosene increased by $1.18 per gallon, moving  from $7.69 to $8.87 per gallon while  Diesel will increase by $0.81 per gallon - from $8.10 to $8.91 per gallon.

Fuel price increases in Belize

Belize reflected  sharp increases in the acquisition cost of gasoline, kerosene and diesel recently.  In an effort to minimise the increase in pump prices, the government announced that it will absorb half of the increase in the cost of gasoline, and pass the other half on to consumers. Consequently, the new price for premium gasoline moved to  $9.95 per gallon while the new price for regular moved up to  $9.70.

Haiti Energy Savings Program

Cuba provided expertise in  the implementation of a  Haitian energy saving program which recently ended.

The project, one of the programs of the Bolivarian Alternative for the Peoples of Our America, included visiting 93,572 houses, 63,000 work places, and installation of 2,863,910 energy-saving light bulbs. 

Several other Caribbean countries have benefitted from this project.

Barbados to host forum on sustainable development in the Caribbean

A high-level roundtable involving Caribbean Small Island Developing States (SIDS) and Iceland in new partnerships for sustainable development in renewable energy, fisheries management and trade convenes took place in Barbados on March 25, 2008.

The three-day conference, promoted by Iceland’s Island Growth Initiative, launched  a multi-year development cooperation partnership between Iceland and the Caribbean. It was  be attended by government ministers and technocrats, the private sector, international agencies and university personnel. Expertise spanned climate change, geo-thermal and hydro energy development, use of marine resources and ocean governance and gender issues. A business and investment forum involving governments and the private sector was also convened.

Besides Barbados and Iceland, the other participating countries are Jamaica, Belize, Trinidad and Tobago, Cuba, St Kitts and Nevis, Dominica and St Lucia. Representatives attending included the Caribbean Community Climate Change Centre, the Caribbean Renewable Energy Development Project and the World Bank.

Measures to implement strategies to reduce fuel bill in Dominican republic

Measures intended to shield the Dominican economy against the effects of high oil prices were introduced in the Dominica republic. Gasoline stations in the Dominican Republic were allowed  to sell gas mixed with ethanol for the first time. In addition,  the government has also finished the installation on the capital's main avenues of "intelligent traffic lights,'' which are designed to run on 10 percent  (10%) of the energy normal traffic lights uses. The government also signed an agreement with sugar companies Central Romana and Grupo Vicini to build an ethanol plant at a cost of $500 million, capable of producing 50 million gallons yearly.

Dominican Republic government to subsidise diesel fuel

Industry and Commerce minister Melanio Paredes signed the agreement Thursday that will allow truck drivers and taxi drivers in the Dominican Republic to receive one million gallons of diesel fuel with a 32 peso government-subsidy, to assist them with ever-increasing fuel costs.

The subsidy on the one million gallons of diesel fuel will help compensate for their losses, as well as the rising costs of tyres, lubricants and spare parts.

The subsidised diesel fuel will now cost 102 pesos per gallon but hasn’t yet been distributed to them.

One of the other actions being considered by Paredes is to issue university students with electronic chip fare cards to be used on public transportation. He is also continuing to stress the further installation of equipment in vehicles to use natural gas and dual fuels.

Total buys Esso's Jamaican Operations

TOTAL Jamaica Limited recently  signed an agreement for the purchase of Esso Standard Oil SA Limited’s entire fuel operations and marketing assets. The deal covers Esso’s complete motor fuels and aviation operations, which network of 37 service stations. The French company is now the second largest player in the market behind Cool Petroleum Limited, which owns the Cool Oasis and Shell Brands.

LPG terminal for Trelawny, Jamaica

Industrial Gases Limited (IGL) and Tank-weld that will  build, once approved by regulators, a Liquid Petroleum Gas (LPG) storage terminal at the metal fabricator's Rio Bueno port, from where it can receive the fuel commonly used for cooking from ships. EnviroPlanners Limited has been contracted by Industrial Gases Limited to do the EIA.

The project, involves the construction of a Liquefied Petroleum Gas (LPG) importation and bulk storage terminal, including all the necessary pipelines and infrastructure that will facilitate the receipt of LPG from ships and the loading and delivery of LPG in bulk and cylinders, according to the TOR. As part of the rationale for building the terminal was the need to reduce transport of LPG from Kingston to the northern and western regions of the island, consequently reducing the exposure to the risks associated with the transportation of LPG by road. The plant will receive LPG from ships, via pipeline, which will carry the gas to a tank farm consisting of 14, 90,000-gallon storage tanks - 1.26 million gallons in all - for the storage of liquid propane and butane, collectively known as LPG or cooking gas.

The facility is to be located on 4.7 acres of land owned by Tank-weld.

Energy Matters, Trinidad & Tobago

In the matter of PETROCARIBE, the Prime Ministers while reaffirming the commonality of their position, expressed understanding for the immediate economic benefits derived from PETROCARIBE as well as concern over the long-term debt implications for participating CARICOM states. Prime Minister Manning also noted the implications which subscription to PETROCARIBE would have had for the support given to Trinidad and Tobago's FTAA Headquarters bid by CARICOM and the steps taken by Trinidad and Tobago to facilitate importation of Venezuelan petroleum by those countries. The same commonality of position applied in respect of ALBA (the Bolivarian Alternative for Latin America) and support for the FTAA. Prime Minister Manning apprised Prime Minister Thompson of developments regarding the Eastern Caribbean Gas Pipeline project. There was mutual agreement on the advisability of pursuing this as a strictly commercial undertaking.

Venezuela to sell Bahamas oil terminal
Venezuela's state-run oil company PDVSA has agreed to sell its BORCO crude oil and refined products terminal in the Bahamas to private equity firm First Reserve. BORCO is a 20 million-barrel storage terminal in Freeport, Bahamas, about 80 miles east of the Florida coast. PDVSA bought the facility, the largest in the Caribbean, in 1990 from Chevron Corp.

Trinidad debates costly gas subsidy - Proposes cut in TT$2b support package

Trinidad and Tobago is conducting a preliminary examination of the issue in relation to expenditure in other areas of the confirmed review but said it was at preliminary phase. Trinidad is an oil producer, but it also imports crude mainly from Venezuela, and is therefore exposed to volatile world prices. Motorists in Trinidad and Tobago currently pay US$0.50 per litre for gasoline at the pumps compared to drivers in nearby Barbados who pay US$1.35 per litre, and about US$0.90 for Jamaicans.  Trinidad does not plan to completely remove the subsidy, but is examining the degree of the cut reducing it to offset increased government spending on oil imports.

Heavily subsidised

All petroleum products in Trinidad and Tobago are heavily subsidised as a deliberate policy of the government since 1974 with the passing of the Petroleum Production Levy and Subsidy Act. The legislation sets up a mechanism for the collection of a levy from oil producing companies and the payment of a subsidy to wholesaler National Petroleum (NP), a state operated company, to compensate for selling products to consumers at the fixed retail prices.

The subsidy is also tax deductible for oil producing companies, so government also incurs additional opportunity cost in revenues foregone.

Largest global private sector firm exploring investment in Guyana - energy, water, agro-processing main areas

Government's efforts to maintain an enabling environment to attract more investments have gained the interest of the world’s largest private sector firms; General Electric (GE) of the United States of America which is exploring the possibility of investing in Guyana. A team from the company that was in Guyana recently met several government agencies in the areas of energy, water, agro-processing and mining among others. "We are very happy that a team has visited Guyana to explore business and investment opportunities," Da Silva said.

The company also held meetings with Go-Invest, the Office of the Prime Minister, Guyana Power and Light Company, Rusal Bauxite Company, CGX of Canada, the Guyana Rice Development Board, Banks DIH, Demerara Distillers Limited and the Guyana Sugar Corporation. It is hoped that if the company invests in Guyana there will be substantial, replacement and upgrading of the entire infrastructure in the energy and water sectors."The latest technology and methods that would make it efficient, effective and when we say efficient, we mean cost-efficient as well to run those sectors. So GE's biggest contribution will be in terms of technology innovation Government is optimistic that before year-end an agreement will be signed. GE has an annual sales turnover of US $173B a year.

LNG to diversify energy needs
Jamaica is to diversify its energy arrangements by committing to establishing LNG facilities. All the negotiations that are going to be required to put all of that in place can now proceed, without any ambiguity as to the direction in which the Government is going." Discussions have started on securing long-term supply contracts for LNG. Jamaica Public Service Limited (JPS) has some gas turbines, some of them over 30 years old, which need to be taken out of service. So the LNG facilities will replace some of the inefficient capacity that the JPS now has, and provide the additional capacity that will be needed to meet the growing demand for electricity as well as to provide power for the Jamalco expansion.

Antigua-Barbuda PM and Venezuela discuss development projects
Antigua and Barbuda conclude discussions with Venezuela, on a number of development projects. Among the issues to be discussed with the Venezuelan authorities are the approval of a major water-infrastructure project, which will include a reverse osmosis plant, storage system replacement of pipes, cooperation in alternative sources of energy and a housing development project.

In February 2003, following the completion of an appraisal drilling programme in 2002, BHP Billiton committed US$327 million to the development of the first phase of the Angostura integrated oil and gas development of the estimated gross of US$726 million.  Liquid hydrocarbons have been produced from this field since January 2005. The state gas company signed a similar agreement with EOG Resources Trinidad for the supply of 110 MMscf/d of gas for a period of 15 years commencing no later than 2010. The gas will be supplied from EOG's Offshore Block 4(a) or the Toucan natural gas field, via the new pipeline system. NGC's transmission and distribution of gas is accomplished through its 446 mile (719 km) network of pipelines. NGC's current system capacity is about 4.0 billion cubic feet per day (Bcf/d) and with the completion of the Beachfield Upstream Development (BUD) pipeline in the fourth quarter of this year, the capacity would be increased to 4.6 Bcf/d. The distribution system comprises a mix of 4-inch, 6-inch and 16-inch pipelines that deliver gas supplies to NGC's large industrial customers in the Port Lisas industrial estate and to over 100 light industrial and commercial customers throughout Trinidad.