Petrojam chair eyes LNG, solar and broader energy role

Petrojam chairman Metry Seaga says Jamaica’s sole petroleum refinery should expand beyond traditional gasoline and heavy fuel oils into a wider energy slate, including LNG, solar and possibly nuclear, as business confidence slipped further in the second quarter of 2026.

The remarks came as the Jamaica Chamber of Commerce and GraceKennedy (JCC-GK) released their Business and Consumer Confidence Indices for the second quarter of 2026, under the theme of how energy costs shape business and household behaviour. Seaga, a serial entrepreneur who was the first president of the Jamaica Manufacturers and Exporters Association and later served three years as president of the Private Sector Organisation of Jamaica, said firms must rethink productivity among both workers and managers, invest in better training, and recognise who they compete against.

Turning to fuel pricing, Seaga said the Government has for years used a smoothing technique that averages cost movements so consumers are not hit with weekly swings. When war drove international prices higher — in some cases toward US$40 a litre — Petrojam absorbed a heavy burden. To date, he said, the refinery has spent about US$18 million subsidising fuel, and the State must repay that sum because the money has to come from somewhere.

Passing prices through at full market levels would be extremely inflationary, he argued, recalling the Prime Minister’s warning that inflation is easy to push up and hard to bring down.

Consumer responses in the confidence exercise pointed the same way. Fifty-six per cent favoured lower electricity rates, 38 per cent wanted more stable fuel prices, 28 per cent backed lower taxes on energy-efficient appliances, and 27 per cent sought easier financing for solar systems. Expanding renewable programmes and stronger consumer education also featured.

Seaga said households have little reason to keep paying high light bills when solar systems and financing are available. Payback periods have shortened sharply, he said, and many people he knows now report bills of US$12 and US$15. His own factory already runs 50 per cent on solar, and he is looking to convert the rest, arguing that relying on regular fossil fuels is no longer the way forward.

He said he senses the Government knows it is behind schedule and will examine energy sources previously set aside. Pressed on Petrojam’s path, Seaga said the board does not want the company confined to gas or heavy fuel oil alone. "We feel that LNG is something we need to be looking at. Solar we need to be looking at. Maybe even nuclear we need to be looking at. Whatever it is that is fueling the country, I think Petrojam should be in," he said, adding that a new look for the refinery will require investment and that firms such as GraceKennedy could support those expansions. Capital-market players indicated they stand ready to participate.