Khan: No shutdown in Pt Lisas

ENERGY Minister Franklin Khan on Friday said, “no plants have been identified in Point Lisas for closure.” Khan also announced Cabinet’s approval of a gas sales contract between the Energy Ministry and NiQuan Energy Ltd to complete Petrotrin’s former World Gas to Liquids (WGTL) plant at Pointe-a-Pierre.

Speaking in the House of Representatives, Khan added, “So therefore, there is no need to indicate any timeline.” Khan reiterated that since assuming office in September 2015, the biggest issue the People’s National Movement had to deal with was the gas curtailment it inherited from the People’s Partnership (PP)

In 2017, national gas production was 3.3 billion cubic feet (bcf) per day.

The estimated figure this year is 3.8 bcf, Khan said.

“A whopping 500 million cubic feet more.” Khan said this figure is expected to increase to 4.0 and 4.1 bcf in 2019 and 2020, respectively.

He explained that any companies at Pt Lisas which have inefficient plants are being encouraged to invest in energy efficient technology.

On the agreement with NiQuan, Khan said this gives Petrotrin an opportunity, “to salvage some not insignificant investment benefit from an investment which would otherwise not be operationalised.”

The benefits of this project include a US$35 million payment to Petrotrin, a capital injection of US$125 million into the economy, 700 jobs in the construction phase, 65 permanent jobs and 650 indirect chain jobs. Khan recalled the PP gave the project a green light on August 5, 2015.

Government, Khan said, has agreed to support a request by NiQuan for a supply of 31 million standard cubic feet per day of natural gas for its gas to liquids (GTL) plant.

Consideration will be given to source natural gas from arrangements which exclude the National Gas Company and which are on commercially acceptable terms, he explained. Projections for this gas supply can be met and Khan said, “Thus finally the project can now proceed.”