Despite the fall in demand for energy resources from familiar trading partners like the United States, T&T has the ability to engage new markets, Energy Minister Conrad Enill says. He even describes the state of the energy sector as “robust.” “New markets include Europe and Latin America, with the first shipment of LNG being sent to Chile in June, this year,” Enill said in a Sunday Guardian interview last week. From his 26th floor office at the International Financial Centre on Wrightson Road, overlooking the Gulf of Paria, Enill spoke about the state of T&T’s energy sector, in the face of major challenges brought on by the global financial crisis.
He said there was no major reduction in production levels in the energy sector, despite significant price changes on the market. “The conclusion can thus be drawn that the sector is robust.” Enill said the sector also remained in good standing, with the recent signing of the Production Sharing Contracts (PSC) in July, between state-owned Petrotrin and Centrica Energy, Ltd for US$48 million. “Another PSC was signed between Petrotrin and Voyager Energy (Trinidad) Ltd.” He said although there wasn’t a full recovery, there were positive signs of improvement in the global energy environment. “As of August 4, 2009, the price of oil was recorded at $74.17 and natural gas $3.53.”
Giving an update on the cross-border gas fields shared by T&T and Venezuela, Enill said in January this year, the Assemblea Nacional ratified a Memorandum of Understanding (MOU), signed between the two countries in 2007, in relation to the Loran-Manatee Field. He said the MOU was ratified in the Venezuelan Parliament, and since then there was increased communication between the two states. “In more recent activity, a meeting was held between a high-level Venezuelan delegation and the Energy Ministry last week. “One of the key matters discussed was the development of the Loran-Manatee Field. “The outcomes of the meeting are before the Cabinet, and the information will be released to the public in due course,” Enill said. The initial volume of the field was agreed to be ten trillion cubic feet, with 73 per cent distribution to Venezuela and 27 per cent to T&T.
There was no need for Jamaica to wait on the development of the Loran-Manatee Field for a promised supply of natural gas, Enill said. “The country has the right to negotiate with whomsoever they see fit to ensure that it has a secure energy supply. “Recent press reports out of Jamaica have indicated that the country has been in talks with possible suppliers, including Algeria and Qatar,” Enill said. In 2004, T&T and Jamaica entered into a MOU regarding the supply of natural gas from T&T to Jamaica. On completion of a pre-feed study, it was deemed that the project, as then constructed, was not viable, Enill recalled.
Several billion-dollar government projects are still on stream, as well. Despite appearances, the US$1,700 MM Essar steel project at Pranz Gardens will continue. Essar Steel signed a MOU with the National Energy Corporation (NEC) in September, 2005, and construction is scheduled to start in 2010. “There have been reports in the press that this project is in doubt because of financial challenges. However, Essar has indicated that construction activity on the site will proceed when the NEC receives the Certificate of Environmental Clearance for the new Point Lisas South multi-user pier facilities.”
Story by Ivone Baboolal from Trinidad & Tobago Guardian
Trinidad & Tobago Guardian
9 Aug 2009
