Julien tells companies to invest in energy

Prof Ken Julien, Natural Gas Export Task Force chairman, yesterday declared that greater local equity investment was needed in Trinidad and Tobago’s energy sector, and the country had at least 15 remaining years of oil and natural gas revenues to ensure that all the prerequisites for developed nation status are in place by 2020. Addressing the opening of the 2005 TT Petroleum Conference at the Hilton Trinidad, Julien referred to comments by South Trinidad Chamber of Industry and Com-merce president, Dr Jim Lee Young, about the need for more local content in the energy sector and more education and training opportunities in this regard.

Describing local content as a very emotional issue in TT, Julien said it was not enough for local contractors simply to get “a piece of the action” from foreign energy companies. He suggested that the answer to increasing local content in the energy sector must be provided both by Government and the private sector. Government, Julien explained, must continue to develop policies to encourage energy companies to explore for hydrocarbon reserves in uncharted areas, increase employment, keep revenues in TT, attract technology to TT and ensure that it remains here. The nation’s research and development capabilities must also be increased.

As for the private sector, Julien said the simplest and most direct way whereby local companies could improve local content in the energy sector is through increasing investment in equity in the sector. He observed that Clico Energy Company had taken the lead through its investment in five methanol companies (the fifth is currently under construction) and two ammonia plants and the creation of an operation and management company “that is now the largest employer on the Point Lisas Industrial Estate. Julien said that by pursuing this strategy, Clico has kept all of its dividends and taxes in TT and is able to use those dividends to build new plants. “That to me is the most dramatic improvement of local content that you can think about,” he declared.

Julien said if Government and the private sector adopt these strategies towards the development of local content, it could create an energy services sector in TT which would be second-to-none in the world and TT already receives regular requests for assistance in several areas from other energy-producing nations. Revealing that Clico Energy is currently involved in the construction of an ammonia/urea plant in Oman, Julien said the time had come for other companies, including State enterprises, to explore investment opportunities in overseas energy markets.

He said given the “dying days” of the British energy industry, British companies were setting up shop overseas (including TT) and there was no reason why local energy companies could not do the same. On the academic level, Julien said the University of TT is already seeking to improve education and training opportunities in the gas-based economy through programmes currently offered. He added that Government now has ample time to ensure that all areas of the national infrastructure are “up to scratch,” and the scenario of an energy-deficient TT was put off for at least another 30 years. Julien also hinted that the new aluminum smelter earmarked for Union Industrial Estate in La Brea would make TT fifth in the world in terms of electricity generation.