Apr 2015 Financial News

TT can be proud of DME

Apr 16, 2015

THE following is an address by Finance and Economy Minister Larry Howai at the Signing Ceremony for the Project Agreement for the Establishment of a Natural Gas to Petro Chemicals Complex for the Production of Methanol Dimethyl Ether (DME) at the Union Industrial Estate, La Brea on April 10:

SENATOR the Honourable Kevin Ramnarine, Minister of Energy and Energy Affairs; Mr Roop Chan Chadeesingh, Chairman, The National Gas Company of Trinidad and Tobago Ltd; Mr Toshikiyo Kurai, President, Mitsubishi Gas Chemical Company Inc; Mr Gervase Warner, President and Group CEO, Massy Group; Mr Takahisa Miyauchi, Senior Executive Vice-President, Mitsubishi Corporation; Mr Hiroshi Kita, General Manager, Caribbean Gas Chemical Ltd; Distinguished guests; Members of the media;

Good morning, I am delighted and honoured to be here this morning to take part in the Signing Ceremony for the Project Agreement for the Establishment of a Natural Gas to Petro Chemicals Complex for the Production of Methanol Dimethyl Ether, or as it is more simply known – DME.

I am delighted, because this morning’s ceremony marks the culmination of many months of complex negotiations. Negotiations which have at long last borne fruit and which have brought us to this point.

I am honoured that so distinguished a cadre of international companies should realise the exceptional opportunity available here in Trinidad and Tobago and work so assiduously toward making it a reality.

Here I must acknowledge by name, the distinguished international companies of which I speak:

Mitsubishi Corporation, Mitsubishi Gas Chemical Company Inc, Japan Bank for International Cooperation along with a consortium of other Japanese Commercial Banks including Japan’s largest bank, Bank of Tokyo-Mitsubishi UFJ, and let us not forget our local partners Massy Energy (Trinidad) Limited a member of the Massy Group and the National Gas Company of Trinidad and Tobago.

These are the organisations ladies and gentlemen which have been working together with the Government of Trinidad and Tobago to get this complex to the point of being built. Trinidad and Tobago is no stranger to large petro-chemical concerns. Our petroleum industry and its downstream activities are highly developed and recognised the world over. But this Dimethyl Ether plant will be the first of its kind here. And we are especially proud of this because of the environmentally-friendly qualities of Dimethyl Ether.

Dimethyl Ether, ladies and gentlemen is known as the clean fuel. It is a clean-burning non-toxic colourless gas which is easy to liquefy and transport. Its high oxygen content, lack of sulfur or other noxious compounds, and ultra clean combustion make DME a versatile and promising solution in the mixture of clean renewable and low-carbon fuels.

It is a product of which we can be proud. DME’s environment-friendly properties are even now revolutionising the fuels industry and with this project Trinidad and Tobago is poised to be in the forefront of this green revolution.

But this is not all the good news. In addition to manufacturing an environment-friendly product, this complex also represents a great boost for our economy. Foreign Direct Investment from this project alone is US$850 million. That is TT$5.4 billion.

In addition to this massive injection of foreign direct investment funds, export of most of the methanol and DME produced is expected to generate huge inflows of foreign exchange on a regular basis.

The company itself will also be paying Corporation Taxes. And then there is the creation of jobs. During the construction phase, this Methanol/DME Complex will generate some 3,000 construction jobs. And here I wish to emphasise that we have the commitment of all the project partners that as far as possible preference will be given to construction workers from the immediate environs.

At the end of construction, when the plant is up and running and fully functional, 184 permanent employees will find meaningful, well-paying jobs here. Ladies and gentlemen, I know that the recent steep decline in oil prices has caused concern. And so it should. The Ministry of Finance and the Economy has acknowledged that it can no longer be business as usual. We have had to make adjustments, cutting costs where we can and cautioning all government ministries to be extra vigilant when spending their subventions.

But the government has also been proactive in identifying and pursuing other avenues of income. This is one such avenue. And it is a big one. Other such avenues are being worked on and when the time is right shall be revealed.

Let me close ladies and gentlemen by thanking all the business entities and their representatives both international and local who worked so diligently to bring this project to fruition. My thanks and congratulations go as well to the government technocrats who worked alongside the businessmen and women to achieve this moment. The Ministry of Finance and the Economy is proud of you and proud to have played a part in the development of this project. We look forward to continuing to work with all parties until the complex is built and we start producing Dimethyl Ether.

Thank you.

Source:
Newsday
Thursday April 16, 2015

http://www.newsday.co.tt/businessday/0,209771.html