Billion-dollar deal makes TT regional powerhouse

The agreement takes effect immediately and Nuovo Pignone, now a subsidiary of US energy giant General Electric Energy (Oil and Gas), is no stranger to TT having supplied fertiliser-manufacturing equipment to local companies in the 1980s and been involved in ALNG’s start-up of operations in TT in 1995.

Following the signing of the agreement at ALNG’s Port-of-Spain headquarters yesterday, Energy Minister Eric Williams said Government was pleased that Nuevo Pignone chose TT as the "regional hub" for the maintenance of turbines and compressors "as well as making provisions for world-class training and development of these specialised skills to the nationals."

"The lack of sufficiently qualified personnel in the energy sector is acute and the coming on stream of this facility promises to place a cadre of highly skilled professionals into the market place. It therefore does not require any stretch of the imagination to appreciate the significant impact this will have on the national economy through increased local participation in the LNG manufacturing process," Williams declared. He further disclosed that 30 percent of the new facility would accommodate the servicing of turbines and compressors for other heavy industries in TT, the Caribbean and South America.

Williams said in an industry where running safe operations could mean the difference between life and death, the facility would ensure the safety of ALNG’s employees and the people of Point Fortin. "In my opinion, $2.5 billion over 17 years is a small investment to ensure that we maintain an accident-free operation," the minister stated. Williams also expressed optimism that the new maintenance regime made available by this contract, would help ALNG in the efficient running of its Point Fortin plant and ensure that it meets all of its contractual arrangements for the supply of LNG. "I note further that improved maintenance can redound to increased levels of production at ALNG," he added. ALNG president Rick Cape said the potential of the new facility to attract service business from the Caribbean and Latin America had huge implications for TT.

Cape was also upbeat about the socio-economic benefits which the agreement with Nuovo Pignone would bring to ALNG’s home community of Point Fortin. "We not only envision employment during the construction of the service shop and long-term employment when in operation, but we also see the potential for enhancement of the technical education and skills training opportunities in the community. Through this centre, we will continue to partner with Point Fortin to ensure the community’s continued development as a nurturing ground for professionals in TT’s oil and gas industry," Cape said. With US$4 billion in annual revenues from its global operations, Nuovo Pignone chairman Piero Salvadori said his company was fully committed to ensuring the success of the agreement.