Rowley: NGC facing $4.5B in claims

He also disclosed that notwithstanding energy multinational BP’s decision not to fabricate the platform for the Angelin project in La Brea, “we did extract a commitment from BP, to give serious consideration for some of these construction projects to be directed to La Brea, at the earliest possible opportunity.” Rowley updated the House of Representatives on his discussions with BP and other energy multinationals in Houston between March 29 to 31. Responding to Opposition Leader Kamla Persad-Bissessar’s query as why these discussions could not have taken place in TT, Rowley said, “the question makes absolutely no sense!” “This is not a discussion between TT and Trinidadians. This is a discussion between the leadership and decision makers in board rooms abroad...so I had to go there to meet them.” Stressing he had no power to bring any of them to TT, Rowley said Persad-Bissessar has clearly shown the country how the PP created major problems in the energy sector, through its actions and inactions.

Reminding MPs that the first gas contract with Methanol Holdings Trinidad Ltd (MHTL) expired on April 14, 2013, Rowley said, “NGC did not negotiate a contract for the MTHL M-iv plant but rather, kept rolling over on a month-to-month basis, while experiencing an increasing shortage of gas.” He said failure to deal with gas shortages from 2011 to 2015, “resulted in billions of dollars in claims for gas curtailments being made against the NGC.” He said MTHL, Caribbean Nitrogen Company, Nitrogen (2000) Unlimited and Point Lisas Nitrogen Limited made respective claims of $2.6 billion, $682 million, $686.6 million and $543.9 million.

The Prime Minister said this resulted in NGC being unable to provide 36 percent of the natural gas it was contracted to supply. He said this led to production in the Starfish and Dolphin fields both dropping to zero. However, Rowley said the Energy Ministry and NGC have successfully negotiated with Shell for, “100 million cubic feet per day until December 31, 2017.” Noting that Government’s responsibility to the population mirrors the responsibility BP has to its shareholders, Rowley said BP was informed that even as TT seeks to re-establish itself as a place to invest in the hydrocarbon business, Government would not have agreed to a 100 percent tax write off on capital expenditure in one year, as happened under the PP.