Investor concerned over ALNG impasse

Country manager of Tractebel Trinidad LNG Corporation, Luc Speeleveld, yesterday said that the industrial situation at the Atlantic LNG site in Point Lisas had become more complicated than it should be. The issues at hand, he maintained, seemed very straightforward. Speaking to reporters at the Hilton Trinidad following his presentation at the March monthly meeting of the American Chamber of Commerce (Amcham), Speeleveld revealed that as a foreign investor in Trinidad, Tractebel did have some concerns about the situation. “This is a development that, as a foreign investor, you would not like to see escalate,” he said. “Especially if the issues at hand seem to be straightforward.” “However,” he continued, “at the end of the day, I think that the process will take place and that there will be a solution found to the satisfaction of everyone... I hope.”

Questioned about whether Tractabel was now breathing a sigh of relief that it had pulled out of negotiations for the Atlantic LNG Train IV facility, Speeleveld replied that the company’s decision to remove itself was made because of circumstances taking place within the company at the time. “I don’t think happy is the right word,” he said. “We are interested in LNG and in participating in LNG expansion. However, Train IV was a bit of unfortunate timing because our parent company, Suez, went through a thorough reorganisation and some divestment at the time.” “This did not put us in the position to make an investment decision at that time. If the opportunity were to present itself today, the answer would be very different,” he stated. He revealed that Tractebel was still very interested in participating in the expansion of the LNG industry in Trinidad, but had yet to identify all the business opportunities. He said, “We are keeping an open mind and we have a very strong focus at the moment for North America, Europe and South America. Trinidad, being part of the Caribbean, we are really looking at synergies and integrations with other parts of the business, but being on an island does not always enable us to see those benefits.”

In his address to the gathering at the Amcham monthly meeting, Speeleveld noted that Trinidad placed a lot of emphasis on the United States as its largest importer of LNG. However, he stated, the LNG trade was becoming much more globalised and integrated, and very soon expansions in the Middle East and the Pacific could have a significant impact on trade between the US and Trinidad. It was necessary, he stressed, to be cognizant of this fact and remain open to all the factors which could affect this trading relationship. “There might be potential for some impact, some interference or some competition that wants to capture what Trinidad wants to capture,” he said, adding, “Trinidad has some good advantages, one of them being that it is close to a market which everyone perceives to be attractive.” He expressed the view that diversification was crucial to a country’s survival and noted that Trinidad had a healthy supply of gas reserves which could result in profitable downstream industries. “The choice has to be made,” he maintained, “between an opportunity that arises and strong gas prices that Trinidad can supply into and receive the highest possible netback, along with dollar amounts that can be reinvested and organised to drive the country forward.”