T&T negotiating with Saudis on $37B project for Point Lisas

Kevin Ramnarine

Energy Minister Kevin Ramnarine said Thursday Trinidad & Tobago will continue negotiations with a consortium led state-owned company, Saudi Basic Industries Corporation (SABIC), to establish a methanol-to-petrochemicals plant in Trinidad.

Ramnarine spoke at the weekly post Cabinet News Conference. He revealed that the US$5.3 billion investment will assist with the diversification of the economy.

"Cabinet has accepted the recommendations of the Evaluation Committee and has authorised the Ministry of Energy and Energy Affairs, together with the National Gas Company and the National Energy Corporation to enter into negotiations and discussions with SABIC and SINOPEC for the establishment of a methanol to petrochemicals and methanol to olefins complex in Trinidad and Tobago," the minister said.

"It's a significant investment being proposed, the investment is in the region of 5.7 billion US dollars, which translates to roughly 37 billion TT dollars. So from a foreign direct investment point of view, it is a very significant project," he added.

The U.S. ambassador to Trinidad & Tobago has raised concerns about the matter stating in a letter to the Prime Minister that U.S. companies did not have a fair chance of bidding for the contracts.

Ramnarine refuted that, saying there was a high degree of transparency and openness in the selection process. "The project has not been approved, that is what Cabinet has authorised, Cabinet has authorised its agencies and the Ministry of Energy to negotiate," he stated.

"All I could confirm is that we have replied to her concerns and the letter was signed by the Permanent Secretary in the Ministry of Energy. We have replied to each one of the concerns raised by the US Ambassador," Ramnarine said.

The minister also updated reporters on the Eastern Caribbean Gas Pipeline Project, which he said would get underway in 2013 with a 2015 targeted completion date.

He said it's a project that is driven by the private sector with a capital cost of about TT$300 million. He added that there will be no problem with the supply of gas since the amount needed is minimal in comparison what Trinidad & Tobago produces.

"The quantum of natural gas for that project is very small. It is 30 million standard cubic feet of gas per day which is less than one per cent of what we produce on a daily basis," Ramnarine said.

"It is envisaged that the natural gas supply to Barbados will kick off from Tobago and will traverse approximately 188 miles of seabed between Trinidad, Tobago and Barbados before it makes landfall in that country," he explained.