Serious gas problems for TT

We have simply run out of gas. We can make all sorts of contracts and hope to buy gas from Venezuela but these will not create any more TT gas.

Since 2003 our seemingly deaf-to-the-facts ministers of energy approved LNG Train 4 that consumes 800 mmcfd of gas. Then there was the enormous investment in the “cross-island pipeline” while the existing pipelines provided enough capacity for a reduced, steady and longer-term supply to existing industries, with potential production rates in reserve that would provide security of supply during localised interruption difficulties offshore.

The policy seemed to be to approve any proposed gas-consuming scheme with no regard for the ability to achieve the aggregate production rate required or how long this would be possible. We advertised this as proof of TT being an “investment friendly” nation, and have strutted around the world claiming to be advanced thinkers on a “business model” and world leaders in gas utilisation.

This apparently still continues in the face of evidence of the impossibility of ever producing enough gas in the foreseeable future.

Clear evidence of this is in the construction of the Massy/Mitsubishi methanol/DME plant, when MHTL has to shut down two plants for lack of gas. Why was this project approved by both PNM and PP governments? It’s all very well to say the PP government okayed the deal, but it was definitely started by the PNM government, which knew of the dire reserve shortage and is still saying nothing while construction continues. Other Pt Lisas gas plants are initiating legal action due to the four-five years of starved gas supplies they have had to bear.

Why isn’t the Mitsubishi project being stopped before the inevitable non-supply to it triggers another lawsuit and serious national discredit and embarrassment? If any attempt is to be made to manage this catastrophe, there must be consideration of the best use of gas. Newer plants are more efficient and from the same quantity of gas can produce more methanol and ammonia than older plants.

I hope somebody in authority is making a careful analysis of which plants bring the most benefit to TT , considering aspects such as age, efficiency, overall profit, tax, jobs, foreign exchange retained etc.

From this the priority for plant shutdowns can be derived and announced.

It’s no point keeping everything secret claiming confidentiality is required by the buyers of gas.

A newly built plant will face severe difficulties in such an analysis since it is new (and unnecessary) capital, leading to large deductions for plant wear and tear and consequent reduced tax payment. We really don’t need foreign direct investment (FDI) that shuts down other plants and reduces tax receipts.

People must remember that FDI is of no benefit to the nation when we are already adequately or over-supplied with whatever the proposed project offers.

No investor puts money into TT without being confident the project will yield many times the investment capital plus operating expense.

And those magnified US$ yields leave the country.

Our development history is littered with examples of bad planning and wasteful lack of planning. Examples are: The development of BHP Biliton’s export terminal in Guayaguayare when the BP facilities at Galeota had adequate capacity; the continued use of these terminals when adequate pipeline capacity to Pointe-a- Pierre exists; the removal of workboat docking from Pt Galeota to La Brea so the Government could build a white elephant “shipping port” at Galeota for an Anancy- story industrial park; The excessive construction of sports stadiums in Trinidad; the Brian Lara Cricket Academy in Tarouba; the highway to Point Fortin which will be completed when the shine of Pt Fortin “development” has long faded from memory; eTeck Park; aluminium smelters; La Brea industrial park; the continuing destruction of green Chaguaramas with ridiculous fun parks, with no access road; The once dreamed of causeway in the sea to Chaguaramas costed at billions of dollars with no useful purpose. The list is endless. Of course many of these defects are better visible with the 20-20 vision that comes with hindsight, but why do they keep on occurring? This must stop. Somebody has to apply common sense before rushing into these terrible decisions. Stop Mitsubishi/ Massy now.

REG POTTER Glencoe