Friday, February 10 2012

THE process that recommended a consortium of Saudi Basic Industries Corporation (SABIC) and Sinopec to begin negotiations with the Ministry of Energy for two energy projects was transparent and open.

Energy Minister Kevin Ramnarine yesterday disclosed this at the post-Cabinet press conference at the Diplomatic Centre, St Ann’s, Port-of-Spain. He was responding to questions about a letter he received from United States Ambassador to TT Beatrice Wilkinson Welters about the recommendation.

“The process was conducted by an evaluation team and they are among the reputable people in the industry with roughly 20 years experience in these kinds of evaluation processes. There was a steering committee that oversaw what they did and was chaired by the Permanent Secretary of the Ministry of Energy. The process was conducted with a high degree of transparency and openness and we are very satisfied that it has thrown up a recommendation which Cabinet has accepted,” he explained.

Ramnarine confirmed that the ministry received a letter from Welters on February 1 and the Permanent Secretary in the Ministry, Richard Oliver responded to her concerns. “We have replied to each one of the concerns raised,” he said.

Ramnarine said he did not want to say what her concerns were as it deals with “issue of the privacy of private parties who submitted proposals to the Government.” The projects include a methanol to petrochemicals complex project and methanol to Olefins project.

He explained bids for the project were submitted last year and the evaluation committee did their assessment of the bids and provided Ramnarine with a report in December 2011. The report was submitted to Cabinet last month and Cabinet yesterday authorised the Ministry together with the National Energy Corporation and the National Gas Company to enter into negotiations and discussions with the two for the establishment of the complexes.

Ramnarine noted that although the project was not approved, it would be a significant investment of more than $37 billion. He later announced that the construction of the Eastern Caribbean gas pipeline project from Tobago to Barbados is set to begin next year at an estimated cost of US$300 million.

He said the project will traverse 188 miles of sea bed in a private sector project with partners including Beowulf, Guardian Holdings TT Limited, UTC and the National Gas Company which has a ten percent equity in the project.

Ramnarine said the quantum of natural gas required is 30 million standard cubic feet of gas per day, less than one percent of what TT produces daily. The project is expected to be completed by 2015.