Clash over gas price

OPPOSITION Senator Wade Mark asked why this country must pay more to a foreign company to extract natural gas in TT, following the Prime Minister’s well-known visit to Houston, Texas. In reply, Energy Minister Franklin Khan said such upstream producers have to be paid a valid price to cover their costs to work in TT’s ever-depleting small gas fields, even as they face rivals enjoying cheap shale gas from the US Permian Basin.

Mark said a recent EOG annual report had revealed the price these gas producers are paid by the state-run National Gas Company (NGC) as a middleman, which in turn then supplies downstream users, in contrast to the Government's secrecy over these figures.

He alleged “the sell out of the patrimony of the people of Trinidad and Tobago.” Mark said NGC used to buy gas from EOG at US$1.88 per unit, but after Dr Rowley’s visit to the EOG offices in Houston the price rose to US$2.38. He said today’s price is US$2.91, “and rising to US$3.”

Mark said the NGC’s Mark Loquan had urged a revisit of these prices.

“You know what they are saying? That the downstream industry will collapse if those prices are not renegotiated and the TT economy will be impaired.”

He said NGC is now so cashed-starved it has told bpTT it cannot buy any more gas to sell on to downstreamers.

Khan advised Mark to stay quiet and not embarrass himself.

Saying gas prices had been agreed with EOG, bpTT and BHP Billiton, Khan boasted, “Gas production for the first time this years hit four billion cubic feet per day.” Khan said NGC had in turn agreed new gas prices to sell gas to users, such as Nutrien and Caribbean Nitrogen Corporation.

With TT rivalled by claims of gas being figuratively “given away” in the Permian Basin, Khan said, “So it’s a balancing act. Everybody has to cut their margins, to keep the industry alive. Everybody has to take a hit.” He hit Mark. “Every time they hear something that could be negative, they take it, lock, stock and barrel.” Saying the Government deserved commendation for daily facing crises in the world economy, Khan said, “You’ll hear more in the Mid Year Review next week.”