US raises concerns over energy projects in T&T involving Saudis

Ambassador Beatrice Wilkinson Welters

American ambassador to Trinidad & Tobago Beatrice Wilkinson Welters has raised concerns with Prime Minister Kamla Persad-Bissessar about the Government’s proposal to award two energy projects to a consortium led by the Saudi Arabia’s state company SABIC, the Guardian newspaper reported Thursday. 

The paper said the contracts are worth US$5.3 billion. 

The Saudi Basic Industries Corporation (SABIC) plans to build a methanol to petrochemicals complex and a methanol to Olefins plant in Trinidad that will require more an a quarter billion cubic feet of natural gas a day.

 It stated further that the wrote the Prime Minister after U.S. interests complained that they were unfairly bypassed in favour of the Saudis.

The Guardian cited "well placed sources" as saying that Persad-Bissessar halted the award of the contracts until the Government could respond to the ambassador.   

The Guardian said it confirmed the American concern through an email from the ambassador.

It quoted the email: “We have contacted the Government of the Republic of Trinidad and Tobago regarding proposed petrochemical projects. 

"The United States enjoys a robust commercial relationship with Trinidad and Tobago. 

“Many US-based companies are interested in doing business in Trinidad and Tobago, and US firms have played key roles in helping develop the energy sector here, bringing innovative technology and financing to new industries. 

“Part of the embassy’s function is to communicate with the Government regarding both economic trends and specific commercial opportunities in both countries, and we feel that we maintain a solid and honest relationship with many Ministers in that regard.”

The Guardian said the there is a controversy over the project involving the price the saudis would pay for natural gas and also over where the plants would be located.

Initially the plants would have been build at the La Brea industrial estate but the paper said now Point Lisas has been identified as the location for the plants. 

The Guardian said the embassy did not respond directly to its query about whether it was satisfied with the Government’s response to the issue.

It stated that embassy's email noted that part of its functions is to facilitate U.S. businesses "to ensure that American firms are aware of the business climate and of business opportunities in Trinidad and Tobago, and that they have equal and fair access to bidding opportunities.”

It added, "In the normal course of business, the ambassador will occasionally inquire about Government policies and processes, particularly if there is interest in a specific project by one or more US firms.” 

The Guardian said its sources have indicated that the process was above board and that the Saudis won the deal fairly.