Sep 2006 Financial News

Saith: US$4 B in projects for Pt Lisas

Sep 28, 2006

The Point Lisas Industrial estate is to benefit from projects worth US$4 billion Energy Minister Dr Lenny Saith said yesterday.

Saith delivered the feature address at an energy luncheon hosted by the Couva-Point Lisas Chamber of Commerce on Wednesday at the Kam-Po Restaurant in Chaguanas.

Saith said discussions towards defining project agreements are continuing for the establishment of a US$1.6 billion ethylene complex and maleic anhydride processing facility. He said construction has already started on a US$1.2 billon petrochemical facility to produce melamine and urea ammonium nitrite for the first time in T&T.

The above mentioned products would have great scope for downstream producers in the areas of plastic products, detergents, pharmaceuticals, agricultural products, paints and furniture.

He said Essar steel’s US$1.2 billion integrated iron and steel complex would be producing steel sheets which will provide the platform for manufacturing activity in the automotive industry.

Saith said NUCOR is also proposing to go further downstream with its operations in T&T. Cabinet has already given the green light for T&T’s first gas-to-liquids plant proposed for Point-a-Pierre under a joint venture agreement between World GTL and Petrotrin to produc 2200 barrels per day of diesel and naptha from 18.4 million cubic feet of gas.

Saith said the possibility of future LNG trains would only happen after domestic gas demands are satisfied. He said the continuing expansion of the natural gas sector has meant that Government’s fiscal policy for the sector must now be re-visited to optimise the country's returns from these resources. He said the Finance Bill for 2006 has now incorporated the monitoring of LNG along with other petroleum products while the government is drafting legislation to deal specifically with natural gas.

He said gas demands on the Point Lisas estate is expected to grow to two billion cubic feet per day by 2009 and expand to 5.5 billion cubic feet per day by 2016 across a more diversified portfolio.

In the search for more gas, Saith said new acreage for exploration is being offshore while government is seeking ways to advance cross border talks with Venezuela for the unitisation of reserves that straddle the borders of both countries.

Answering questions from the media, he said the failure of the $0.5 billion Ibis Deep Well should not serve as a deterrent to future petroleum exploration. Ibis Deep, he said, was an example of how hard it was to find oil.

“Drilling for hydrocarbons is a risky business and I am told if you get one in four, one in five you are doing well. We would have liked it to be successful it wasn't, we have blocks out and we will see what happens and I am sure interest would continue to be there.”

Adrian Boodan
The Trinidad Guardian
Thursday, September 28, 2006.
http://www.guardian.co.tt/business1.html