Downstream Activity
The Trinidad Guardian
Port
Spain
Petroleumworldtt.com
01 07 07
Activity
in the downstream sector in 2006 did not see the
high profile opening of mega plants which were common
in 2005 and 2004.
The
most significant event in the downstream sector
was the commencement of construction on the Methanol
Holdings Trinidad Ltd US$ 1.2 billion Ammonia-Urea-Melamine
complex. The project is significant because it marks
the first foray further downstream into secondary
petrochemicals. The project is expected to be completed
in 2009.
Other
downstream and metals sector projects originally
projected to begin construction in 2006 have been
delayed.
The
heavy industrial sector received an unusually high
degree of national attention in 2006 because of
Government’s planned industrialisation of
the south western peninsula and particularly its
plans to establish aluminium smelters in Chatham
and in La Brea.
On
December 62006 the STCIC, in collaboration with
the National Energy Corporation, UWI and the UTT
hosted a symposium on the establishment of an aluminium
industry in T&T, with the objective of providing
information about the industry and promoting informed
debate.
The
symposium clearly met these objectives and generated
significant interest in the national community.
Right at the end of the year the Prime Minister
announced that the proposed Alcoa smelter would
no longer be sited in Chatham and instead an alternative
site on a proposed reclaimed off-shore island would
be developed.
In
July, Mirant announced the sale of its shareholdings
in Caribbean power generation facilities which includes
a 39 per cent stake in Powergen.
The
STCIC responded by calling for consideration to
be given to local private sector participation in
the sale of Mirant’s shares in Powergen.
Looking
forward to 2007
The
year 2007 promises to be an important one for Canadian
companies. It has been reported that both Canadian
Superior and Petro-Canada will commence drilling
programmes in 2007. In the case of Petro-Canada
their drilling programme will focus on blocks 1a
and 1b in the Gulf of Paria and block 22 off to
the east of Tobago. Canadian Superior is expected
to drill three wells in block 5c.
Given
the demand for natural gas in T&T, it is imperative
that companies drill. The failure of the Deep Atlantic
bid round at the end of 2006 and the overall disappointing
exploration programme in 2006 come against the backdrop
of a downstream gas sector that seems to be continually
expanding. What is now very clear as we move into
2007 is the need to find more gas and to find it
quickly.
This
can only happen if companies get out into the field
and drill and that can only happen if the economics
of the production sharing contracts can justify
the level of risk involved.
In
2007 we also look forward to the completion of talks
on the unitisation of cross border reserves between
Trinidad & Tobago and Venezuela. The next year
will be a crucial one for an industry that remains
the main pillar of the T&T economy.
Further
information about company plans for 2007 will be
released at the Trinidad and Tobago Petroleum Conference
2007 on 5-6 February 2007.
(See
www.stcic.org for further details)
The
Trinidad Guardian
Thursday 4th Janurary, 2007
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Trinidad Publishing Company Limited.
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