The Energy Chamber of Trinidad and Tobago says the decision of foreign owned companies within the energy sector to shut down their operations in recent times will have an impact on the country’s foreign exchange earnings.
In a statement following the announcement by the Canada-based Methanex Corporation that it will be indefinitely idling its Titan methanol plant, the Energy Chamber said Methanex has been a ‘valued long-term investor in this country’, and its operations here have ‘ made a meaningful contribution to Trinidad and Tobago’s export earnings and the vitality of the Point Lisas Industrial Estate’. ‘Methanex Corporation said that it had been unable to agree to a new natural gas contract for its Titan methanol plant in Trinidad and Tobago with a capacity of (860,000 tonnes per year ‘and, as a result, will begin the process of indefinitely idling the facility’. It said that existing natural gas contract expires in September.
The company, which employs more than 100 people, said it ‘will undertake a preservation process at the Titan plant to provide optionality for a future restart should conditions materially improve’.
In its statement The Energy Energy Chamber said that it has taken note of thee announcement acknowledging that the company had ‘engaged extensively with the government of Trinidad and Tobago and the National Gas Company ahead of this decision, and we recognise the genuine efforts of all parties to seek a workable path forward.
‘The Chamber looks forward to continued engagement between all parties with a view to creating the conditions that would allow these facilities to resume operations. We note that Methanex has preserved both plants in a state that provides optionality for a future restart, and we welcome that commitment. ‘
President and chief executive officer of Methanex Corporation, Rich Sumner said the company has had ‘a long history in Trinidad and Tobago with an outstanding organisation that has played an important role in our company’s history.
‘This difficult decision reflects our focus on preserving long-term shareholder value in a challenging environment where the structurally tight gas supply and demand balances in Trinidad and Tobago are making operations commercially unviable.’
The Energy Chamber said it ‘remains available to support any constructive process that advances the long-term viability of the petrochemical sector in Trinidad and Tobago,’ noting also that the decision by the Canadian company follows the shutdown of operations at the Nutrien facilities, where ammonia and urea were produced and exported.
‘The shutdown of these facilities has weakened Trinidad and Tobago’s exports of these products and will have an impact on the country’s foreign exchange earnings. Beyond the direct workforce at these plants, the Chamber is mindful that a significant number of its member companies, local contractors and service providers who support operations across the Point Lisas Industrial Estate, will also feel the effects of these closures.
‘The Energy Chamber remains committed to working collaboratively to ensure the long-term development of a competitive and sustainable energy sector in Trinidad and Tobago.’