UNC blames PM for Yara closure

UNC energy spokesman David Lee has flatly blamed the Keith Rowley government for the pending year-end closure of the Yara ammonia plant at Couva due to high gas prices and low gas-supply plus low ammonia prices.

He said the Government had ignored red flags on gas-supply and the Prime Minister's United States energy trip had fallen short.

Yara said on Wednesday that its talks with its gas supplier the National Gas Company (NGC) had failed to reach an agreement to sustain the plant. The NGC yesterday said it too had felt the effects of a volatile environment (that is, high gas prices) while trying to mitigate this effect on its clients.

Lee was livid at the shocking, saddening and worrying news of Yara’s demise.

“Our energy sector is on the verge of collapse,” he stormed.

He said it was “utterly appalling, atrocious and outrageous” that a huge company like Yara, with a rich operational history and solid performance helping TT become the world’s top exporter of ammonia, must now close because of failed talks with the government-run NGC.

Lee said it was a dark day when yet another company must close due to the Government’s poor handling of TT’s energy resources, a common occurrence over the last four years. It was “another disgraceful and troublesome day” when thousands face the breadline.

“As a nation we must question why so many companies are being hindered, thrown out of operation and forced to scale down due to natural gas issues or negotiating issues with NGC,” he said.

In the past four years, Arcelor Mittal and two plants of Methanol Holdings have closed, while Caribbean Nitrogen Company (CNC) had to go to court for a new gas-supply deal, and questions loom over Atlantic LNG Train One, he recounted.

Lee said while the 2015 PNM manifesto had pledged support to gas-backed industries, the total opposite had happened.

“Energy stakeholders must question if the Prime Minister really benefited the energy sector when he boasted about the success of his Houston trip in 2017.”

Lee said since then have been red flags such as reports of NGC buying less gas despite facing a gas shortage, reports of NGC’s profitability being hit by new upstream deals and the sudden resignation of chairman Gerry Brooks.

Lee feared the fragility in the natural gas sector could lead to more shutdowns and job losses as this government has failed to curtail this shortage.

He alleged four years of lip service including a “failed Dragon gas fairytale.”

“Energy Minister Franklin Khan has broken a national record as never before in our history has so many energy companies ceased their operations under the tenure of one minister.”

It was a national shame that while the energy sector of TT's neighbours flourishes, its own deteriorates at a rapid rate, Lee said.

“Our energy sector took the work of many governments over many years to be built into a robust leader within the Caribbean.

“However, the Rowley regime is doing what was once thought to be impossible. It is destroying years of work, billions in assets and thousands of livelihoods in the short space of four years.”