Trinidad makes pitch to help Caribbean countries monetise energy sector

GEORGETOWN, Guyana, Feb 14, CMC –Trinidad and Tobago Tuesday said it is prepared to assist Caribbean Community (CARICOM) countries further develop their oil and gas industries and has taken a deliberate policy to engage its regional neighbours in the development of economic co-operation in the energy sector.

Prime Minister Dr. Keith Rowley, addressing the opening of the Guyana’s International Energy Conference and Expo, told more than 1,200 delegates that crude oil which was once seen as being at the margins of the region has become a focal point with major discoveries in Guyana, Suriname, French Guyana, Belize and Trinidad and Tobago.

He said beyond this, there is a huge interest by major oil and gas companies prospecting off the coasts of Barbados, Grenada, Bahamas, Cuba, Jamaica and the Dominican Republic.

Rowley said exploration success by new Caribbean entrants in the petroleum industry can be a game changer for the Caribbean region.

He told the conference that is being held under the theme “Harnessing Energy for Development”, and aims to facilitate the exchange of ideas, propositions, and plans for fundamental advances in the energy sector that .fossil fuels, namely oil and gas, will remain the dominant energy source in the near to medium term.

“Regional availability and infrastructure will determine how various countries expand their domestic energy supplies. Industry innovation for both fossil fuels and renewable sources will continue to increase energy supply and energy efficiency, thereby improving energy security and reducing greenhouse gas emissions. “

Rowley said global trends such as climate change are forcing a rethinking of investment, especially in the light of a reshuffling of global economic activity and significant demand growth in the developing world.

“However, fossil fuels are still the main energy source for the world’s economic engine and are cost effective. It is resilient and affordable energy that creates economic growth. Therefore, the concept of climate change should not prevent developing countries from using fossil fuels as sources of energy in pursuit of economic growth.”

The Trinidad and Tobago prime Minister said it is interesting to note that during the rethink, in so far as circumstances demand, some developed countries have fired up their old coal burning plants and have declared hitherto despised nuclear power as “clean energy.”

“The Caribbean response is to designate natural gas as the clean energy, reserve our right and willingness to continue to explore for and market oil resources and invest in green energy and technologies as far as we are able to.

“We will continue to make the case to the major global polluters to encourage investment in green initiatives identified within the region. We in the Caribbean are not alone in defending our energy interests,” Rowley said, noting the statement by the Pulitzer prize winner Daniel Yergin who had pointed out that in the 1990’s, before shale, gas never accounted for more than 17 per cent of  electricity generation by 2019 gas had risen to 38 per cent and continues to rise.

Rowley said that the regional energy landscape does not equip any single country to meet the energy security requirements of the region.  He said a cooperative approach allows for shared risks and diversified perspectives, and will facilitate the development and execution of innovative solutions to the challenges associated with the energy demand for the region.

“It is with this recognition that Trinidad and Tobago has taken a deliberate policy to engage our regional neighbours in the development of economic co-operation in the energy sector.  To this end we have executed unitisation agreements with the Government of the Bolivarian Republic of Venezuela, the government of Barbados and the government of Grenada, which will allow for the exploration of hydrocarbon resources in the maritime boundaries shared with our neighbours.”

Rowley said Port of Spain has executed a Memorandum of Understanding with Guyana and also with the Haitian government on co-operation in the field of energy.

He said Trinidad and Tobago had also executed a heads of agreement with Venezuela for the development of the Dragon Field located in the eastern end of the Mariscal Sucre area of Venezuela to facilitate the sale of natural gas for supply, by pipeline, to the domestic market and the LNG facility located in Trinidad and Tobago.

Rowley said the progress in the development of the Dragon field was disrupted and delayed by United states sanctions against Venezuela and following the request by Port of Spain, the US Treasury Department recently granted the Government an initial two-year (OFAC) licence to develop the Dragon field with a view to enhancing Caribbean Energy security.

“In today’s economic environment, however, investments in enabling infrastructure and technology can be costly even to the point of being prohibitive. Trinidad and Tobago has the energy infrastructure to monetise hydrocarbon resources produced by its Caribbean neighbours.”

Rowley said Trinidad and Tobago possesses 10 ammonia plants, seven methanol plants, four LNG plants, an iron and steel complex which at peak performance utilised as feedstock four bcf of natural gas per day and an oil refinery which processed up to 140,000 barrels of oil per day.

He said Trinidad and Tobago’s current natural gas production averages 2.8 bcf per day and the country is still exploring the market for a user for the oil refinery.

“Trinidad and Tobago therefore provides a viable option for those countries that wish to optimise the monetisation of their hydrocarbon resources without incurring substantial capital expenditure. The proposed Dragon Gas Project with Bolivarian Government of Venezuela is an example of Government to Government co-operation in the monetising of natural gas resources.

“We are open to discussion with our other Caribbean neighbours on the monetisation of their hydrocarbon resources in Trinidad and Tobago. We would also wish to assist you in developing programmes to meet the necessary training needs of your energy personnel.”

Rowley told the conference that Trinidad and Tobago possesses a number on non-governmental and government agencies that have been meeting the human resource development needs of the energy and industrial sectors of Trinidad and Tobago as well as emerging oil and gas economies.

“As an emerging major oil and gas producing region, we have a window of opportunity to take a proactive approach to leveraging our collective knowledge and expertise to optimise new opportunities going forward.

“Linking the energy and industrial transformations to a collaborative economic strategy would ensure that the region makes the most out of its abundant oil and gas resources. We must use our energy resources for the benefit of our people, to build resilience and scale in our economies and to create energy security for the region.

“I am confident that the spirit of community, which has been key to our success as the oldest surviving integration movement in the developing world, will foster and augment the level of co-operation that can make the Caribbean an economic force in the region,” Rowley added.

We want to hear from you! Email us at star@gleanerjm.com and follow @thejamaicastar on Instagram and on Twitter @JamaicaStar and on Facebook: @TheJamaicaStar, or on Whatsapp @ 876-550-2506.