New industrial estate in South

PRIME MINISTER Patrick Manning announced the establishment of a new industrial estate in south-west Trinidad which will house several new gas-based industries, including ethylene and gas-to-liquid complexes.

Addressing the opening ceremony of the 2004 Trinidad and Tobago Petroleum Con-ference at the Hilton Trinidad yesterday, the Prime Minister said: “The Union Estate in the southwest region of Trinidad has been identified as a potential site to located the following gas-based industries. “Firstly, ammonia, urea and urea ammonium nitrates. Secondly, an aluminum complex and power plant. Thirdly, an ethylene complex. Fourth-ly, a gas-to-liquids complex. Fifth, a methanol plant. The 750-acre site has been the subject of major planning activities to accommodate these industries.”

Manning said studies conducted on the site indicate that “the area has been found suitable for constructing an industrial estate.” He added that preliminary designs and cost estimates are being reviewed by the National Gas Company while the entire process is being monitored by the Cabinet’s Standing Commit-tee on Energy and the Cabinet itself. Manning said the approval of Atlantic LNG’s (ALNG) Fourth Train now provides the critical mass of ethane needed to establish a US$1.1 billion, 850,000 tonnes per annum ethylene cracker. The Prime Minister said with global ethylene demand expected to reach over 160 million tonnes per annum by 2012, “TT must shortly be ready to deliver to the world.”

Manning said the establishment of an ethylene cracker will necessitate the simultaneous creation of a facility to convert ethylene into downstream polythene products such as health care commodities. The Prime Minister also said Government was examining an investment proposal for a gas refinery capable of processing natural gas into synthesis gas. “By centralising production in this refinery, we can expect to reduce the capital and operating expenditure of ammonia and methanol plants located at this gas refinery,” he said.

Manning added that this facility will also incorporate a utilities hub that will provide high pressure steam and electricity to the surrounding plants. The Prime Minister also announced creation of a Permanent Local Content Committee which is mandated to “finalise a policy document on local content and local participation with specific recommendations on the desired levels of local content to be contained in the energy sector projects” within one month of its establishment. Manning said construction of an $80 million fabrication yard at La Brea will be completed in April.

Recalling that in 1992, few people believed TT’s  available natural gas reserves could support development of an LNG plant, Manning hinted that Government will be giving consideration to ALNG Trains Five and Six.  “Our proven reserves at that time were significantly smaller than what they are now,” he said.   Manning said TT now has its highest reported proven crude oil reserve in 39 years of 990 million barrels with probable and possible reserves of 324 million and 2 billion barrels respectively. The Prime Minister said TT’s natural gas reserves were heading in the same direction with proved reserves of 20.8 trillion cubic feet (tcf); probable, 8.3 tcf and possible 6.1 tcf.