Saith: Two energy deals signed

The agreements are for the establishment of an ethylene complex and a maleic anhydride processing facility, Saith said.

He said the development of an ethylene production facility has been an aspiration in TT for some time and, on April 18, 2006, Westlake International Investments Corporation, a subsidiary of Westlake Chemical Corporation (WCC), signed a memorandum of understanding (MOU) with a consortium comprising the Government, the Natural Gas Company and the National Energy Corporation.

“This MOU established the framework for the project evaluation of the proposal tabled by Westlake for the construction, operation and ownership of an ethane-based ethylene/polyethylene plant in TT,” said Saith.

He said WCC is a publicly traded company in the United States and, to date, has constructed 11 ethylene crackers and polyethylene plants in locations throughout the world.

“The ethylene complex will be constructed on 250 acres of land at a site to be identified and will be done in three phases, with construction scheduled to start in the last quarter of 2007,” the Energy Minister disclosed.

“Production is expected to start three years later in 2010. The capital cost is estimated at US$1.5 billion, subject to further definition of the venture.”

The minister said ethylene is used as a raw material in the manufacture of plastic and fibres for the packaging, transportation and construction industries.

Saith said the establishment of a maleic anhydride processing facility is to be undertaken by ISEGEN Limited, a private company incorporated in South Africa.

It is a global manufacturer of chemicals for food additives.

A MOU between ISEGEN and Phoenix Park Gas Processors Limited was signed in December 2005, Saith said.

The cost of the project is estimated at US$64 million and construction is scheduled to start in 2008.