[UPDATED] Energy Minister: Technical issue shuts down major natural gas supplier

THE Energy Ministry has confirmed that production at a major natural gas supplier has been shut down by an "unplanned technical issue" causing a significant reduction in gas supply to end users.

In a brief statement on Friday, the ministry said, "This unforeseen event is being given the priority urgent attention that is necessary by the upstream entity.

"It is hoped that the situation will be resolved in the shortest possible time frame."

This follows a statement made earlier in the day by UNC Point-a-Pierre MP David Lee in which he called on Energy Minister Stuart Young to provide clarification on “a gas crisis at the Point Lisas Industrial estate.”

Lee claimed four critical end-user plants – Proman M2 and M3, Tringen 1 and Nutrien 3 plants – had been shut down in the last few weeks because of a lack of natural gas.

He claimed the survival of TT’s economic well-being, foreign exchange and revenue generated by those plants were being jeopardised under Young’s purview.

“As a matter of fact, this incident is a product of Young’s failed approach to gas production during his tenure which has been marked by unattractive bid rounds, lack of proper incentives and the inability of TT to attract new investment into gas production.”

Contacted by Newsday on Friday, the National Gas Company of TT Ltd (NGC) confirmed that it had been notified of the shutdown. It admitted the supply of gas to consumers had been negatively affected.

The NGC noted, however, that while some end-user plants were forced to shut down by a reduced supply of natural gas, others had already shut down as a part of routine maintenance.

The NGC echoed the ministry's hopes that the issue would be resolved quickly.

Contacted later for a response to the ministry's statement, Lee asked Young, "What is the true story?"

He added, "Do not hide behind the issue of maintenance."

Lee claimed the gas supplier's shutdown had caused severe domino effects, including job losses and a significant decrease in foreign exchange earnings.

He added, “This incident of gas supply at Point Lisas becomes even more troubling as only yesterday (Thursday) the Prime Minister admitted that the Venezuelan government had not accepted the terms for the Dragon gas deal, validating our (Opposition) concerns that this government should have focused on a more sustainable avenue for gas production as opposed to selling a dream with Dragon gas.”

Lee was referring to statements made by Dr Rowley during an interview on TV6's Morning Edition on Thursday.

Rowley said Government had worked with the US to "give us a carve out to allow us to treat with (Venezuela state energy company) PDVSA without breaking sanctions."

The US, he continued, won that battle and put a condition on it "which the Venezuelans, as of now, have not accepted these terms."

He added, "We are talking on both sides. We are still negotiating."

On January 24, the US Office of Foreign Assets Control (OFAC) granted TT a two-year waiver to explore the Dragon natural gas field in Venezuela.

That US$1 billion deal was signed between TT and Venezuela in August 2018. Those involved included energy giant Shell, Venezuela’s state oil company PDVSA, and TT’s National Gas Company (NGC).

The Dragon deal would have seen TT developing the field which is estimated to produce approximately 150 million standard cubic feet of gas a day. The gas was supposed to be imported through a billion-dollar pipeline to the Hibiscus platform off the northwest coast of TT. The platform is jointly owned by the TT government, NGC and Shell.

The deal was left in limbo after the US imposed sanctions on Venezuela in 2019.

This story has been adjusted to include additional details. See original post below.

A major upstream natural gas supplier in TT has shut its production to deal with unplanned technical issues, a release from the Ministry of Energy said on Friday.

It said this has led to a significant reduction in current gas supply which in turn has affected the end users of gas.

The release said, this issue is being given urgent priority attention that is necessary by the upstream entity.

It hopes the situation will be resolved in the shortest possible time frame.