Energy Chamber saddened by Yara closure

The pending closure of Yara’s ammonia plant has raised concerns about the challenges faced by petrochemical companies at the Point Lisas Industrial Estate. That’s the view of the Energy Chamber, which said in a media release that while TT’s petrochemical sector can have a “sustainable future,” this is dependent on the “right policy framework and joint efforts by all stakeholders to improve productivity, efficiency and overall competitiveness.”

The closure of the Yara plant highlights the challenge faced by the downstream gas industry in TT, the Chamber said. It added that competition from cheap shale gas in the United States and low commodity prices were making it difficult "for shareholders to allocate the capital needed to invest in the continued plant maintenance required to safely continue operations in Point Lisas."

It warned, “Notwithstanding the significant work done in the past few years to improve the supply of natural gas to the downstream sector, investors continue to have concerns about a sustainable supply of competitive gas in TT.

“The long-term future of the petrochemical sector in Trinidad requires all players in the gas value chain to work together.”

The chamber said it is committed to “continue playing its role in facilitating dialogue between all stakeholders, identifying opportunities to improve the ease of doing business and ensuring the competitiveness of the industry.”

The Chamber said it was “saddened” to learn the ammonia plant will be closing at the end of the year, saying this decision would negatively affect Yara’s employees and the contractor workforce at the site.

The Chamber observed that Yara was the first ammonia plant to be commissioned in Trinidad, and pre-dates the Point Lisas industrial estate. “Many of the country’s leading engineers learnt their trade working on this facility and it has for many decades provided the business opportunities that fostered the growth of locally-owned contractors and service companies.”