Young: TGU important for energy, economy

ENERGY Minister Stuart Young has said Trinidad Generation Unlimited (TGU) remains a critical pillar of both the energy sector and the economy.

He spoke at the opening of the company's new office in Chaguanas on Tuesday.

TGU was formed on December 13, 2006 as a joint venture between the Union Estate Electricity Generation Company Ltd (UEEGCL), a wholly-owned state company, and AES Corporation of the US.

Construction of TGU's plant at Union Estate in La Brea started in January 2009. The company began commercial operations on August 1, 2011.

On July 10, 2013, UEEGCL acquired all the existing shares held by the AES Corporation, making TGU a 100 per cent state-owned company. In May 2018, TGU became part of the National Investment Fund Holding Company Ltd (NIF), a company created by the Government.

The other four are Republic Financial Holdings Ltd, One Caribbean Media Ltd (OCM), West Indian Tobacco Company Ltd (Witco) and Angostura Holdings.

Reflecting on these facts, Young told TGU's board of directors, management and workers that the company remains a critical part of the national landscape.

"We, the citizens, appreciate what it is that you do."

Young said some people don't know that TGU "is supposed to be the most efficient producer of power generation, electricity in layman's terms, in TT."

He added that TGU plays a critical role in ensuring domestic energy security.

Young recalled that since the start of the Russia-Ukraine war last February, energy and food security have featured in ongoing global conversations between nations.

"Power generation is extremely important in that landscape, in that conversation."

From an energy-sector perspective, Young said, "We are counting on TGU to continue its efficiency."

Referring to last year's islandwide blackout in Trinidad which disrupted production at TGU's plant, he added that the company has had some bumps in the road.

A report on that incident attributed the blackout to a large fungus-infected palmiste tree falling on a 12,000-volt line, which subsequently fell on a 220,000-volt line, in south Trinidad.

Young said, "You have overcome that now and there are lessons always to be learnt."

He added, "In our current landscape, (natural) gas is a very precious commodity."

Young pointed out that natural gas, like crude oil, is a depleting natural resource.

"TT, like every country in the world that produces hydrocarbons, is going through that same cycle of a reduction in our (natural) resources."

He said this was why it was important for TGU's plant to maintain its 720 megawatt (MW) production at peak efficiency.

He added that daily he asks TGU and other domestic industrial consumers of natural gas one question: "How much gas is being used and what is the efficiency?"

Referring again to the blackout, Young said this demonstrated the importance of maintenance.

"We are counting, as citizens of TT, on your (TGU) maintaining the (La Brea) plant that the citizens of TT have so heavily invested in."

Young said efficient maintenance of TGU's plant and facilities which use natural gas helps with the efficient domestic use of this commodity.

On TGU's inclusion in the NIF, Young said, "When we looked down the landscape as the government, it is very easy to sell assets and to get money that goes into recurrent expenditure and then disappears."

But NIF's creation, he continued, changed that.

"The policy decision was, let us find some of the crown-jewel assets of the people of TT, (and) ringfence it in a way that it will continue to be an asset for future generations."

He added the policy also allowed for the public to invest in the NIF's assets "and get returns."

Young said NIF has been very successful to date, with TGU being one of its main pillars.

He reiterated this is why the public depends on TGU for energy efficiency but also playing a key role in economic growth and stability, through NIF.

"These are the responsibilities that you carry.

TGU chairman Sandra Jones said the company stands "as a pillar of energy reliability and sustainability."

She added that together with Government and other stakeholders, "We will continue to drive forward, embracing innovation and contributing to growth and development of our nation's energy sector."