[UPDATED] Young tells regional oil producers: You’ve got a friend in Trinidad and Tobago

Energy minister Stuart Young added his voice to that of the Prime Minister and Guyanese president Dr Irfaan Ali in their call for greater collaboration among Caribbean states regarding the exploitation and production of energy resources, offering TT’s infrastructure and experience in the oil and gas sector as a beneficial factor to fostering greater collaboration in regional energy security.

“Consider this, a country that has just found new oil and gas resources and is faced with the dilemma of how to allow the exploitation of those reserves. It will take a while to be able to monetise those gas reserves,” Young said.

“You have to bring it to shore, you have to create an industry onshore. Those things cost billions of US dollars. How long would it take the people who own those resources to get the returns of the revenue from it? Wouldn’t you have to offer tax holidays, moratoria and incentives? Wouldn’t you then have to put down the infrastructure to ship it out?

“As opposed to this – right there in TT there is the existing plug-in, you can send your gas resources and you will get your returns immediately. You can then use that on infrastructure for the people as a return for the people of your respective countries.”

“I take this opportunity to let you know that you have a friend in TT, a friend who stands ready to assist in any way we can.”

He made the statement during his address on Tuesday, the second day of the four-day Guyanese Energy Conference and Supply Chain Expo at the Guyana Mariott Hotel in Georgetown.

He added that with the restructuring of Atlantic LNG and various deals with international oil and gas companies, TT has the knowledge to negotiate deals for the benefit of the region.

“Our ability to sit down right across the aisle and share with those now entering into the negotiations should not be underestimated,” he said.

Young said greater collaboration would mean a better voice when dealing with international stakeholders. He highlighted the challenges behind getting covid19 vaccines and the positions taken by several larger countries on policies for energy transition which would affect the region’s ability to exploit its oil and gas resources, saying that the Caribbean must take hold of its own destiny and make its own decisions when it comes to energy security.

“What we need is an equal voice and an equal seat at those tables of decision-making. When you have countries in Caricom such as Guyana who is now producing significant amounts of oil, the potential of Suriname and the ability of TT that has been exploiting oil for over a century and has a significant gas-based economy, we hold the opportunity to influence the energy security conversation being held around the world,” he said.

“Together the whole of Latin America and the Caribbean contribute to less than three per cent of global emissions. Global climate change is something that we are well aware of because our small island states face on an annual basis the effects.

“But once again we are on the cusp of certain countries taking positions that will affect our utilisation of our natural resources, for example carbon tax on products coming from our region, making them less competitive.

He warned against outliers giving their opinions on the region’s energy resources, taking note of the pressure from developed countries on the region and on Africa, to manage its resources responsibly while those countries had already profited from its own resources and those of other regions as well.

“Coming out of covid19, what we saw there with the rush for vaccines was immediately a hoarding of vaccines by those with the wealth to afford them. One thing I can guarantee you is that if there is another global crisis, the outcome and reaction will be no different.

On February 19, both Dr Rowley and Ali made calls for collaboration among Caribbean states in energy. At the opening ceremony of the conference, Ali said Guyana was seeking greater integration with Caribbean counterparts to develop energy security for the region. He said the region's energy could only be beneficial if there was a defined market space in the region. He said Guyana first needed to build infrastructure with a focus on supply and logistics.

Rowley said collaboration was key to the region's energy security. He said ensuring that the region could fully exploit its resources would guarantee that economic strategy and industrial growth would be aligned for the benefit of the region. He also nodded to conversations being held in the development of a cargo ferry service between TT, Guyana and Barbados.

In his address on Monday, Rowley also noted TT's 100-year history of oil and gas production, which had been sought after by other countries as a model for production.

In 2018 state-owned Point-a-Pierre refinery was moth-balled amid a restructuring of Petrotrin which the government said was incurring significant losses yearly. The upstream portion of the company was re-established as Heritage Petroleum while the refinery was put up for sale or lease.

Patriotic Energy and Techologies Co Ltd, owned by the Oilfield Workers Trade Union made an attempt to procure the refinery but was unable to complete the transaction amid multiple breakdowns in negotiations.

The conference, themed fuelling transformation and modernisation will host energy professionals around the world who will connect to facilitate an exchange of ideas, propositions and plans for advances in Guyana's energy sector. Participating companies will address the concerns of the sector, climate change and maximising the benefits of local content development of Guyana and the region.

This story was originally published with the title "Young calls on region to control its own destiny in energy sector" and has been adjusted to include additional details. See original post below.

Trinidad and Tobago Energy Minister Stuart Young called on the region to take hold of its destiny and responsibly manage its own energy resources at the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana.

“We are sophisticated enough, we are intelligent enough, and it is time we are confident enough to really direct our decision making,” he said.

He made the statement on February 20 at the opening of the second day of the four-day conference.

Young added his voice to the call for greater collaboration among Caribbean states regarding the exploitation and production of energy resources.

He offered Trinidad and Tobago’s infrastructure and experience in the oil and gas sector as a beneficial factor to foster greater collaboration.

“Consider this, a country that has just found new oil and gas resources and is faced with the dilemma of how to allow the exploitation of those reserves. It will take a while to be able to monetise those gas reserves – you have to bring it to shore, you have to create an industry onshore. Those things cost billions of US dollars. How long would it take the people who own those resources to get the returns of the revenue from it? Wouldn’t you have to offer tax holidays, moratoria and incentives? Wouldn’t you then have to put down the infrastructure to ship it out?

“As opposed to this – right there in Trinidad and Tobago there is the existing plug-in, you can send your gas resources and you will get your returns immediately. You can then use that on infrastructure for the people as a return for the people of your respective countries.”

He added that with the restructuring of Atlantic LNG and various deals with international oil and gas companies, Trinidad and Tobago has the knowledge to negotiate deals for the benefit of the region.

“Our ability to sit down right across the aisle and share with those now entering into the negotiations should not be underestimated,” he said.

Young said greater collaboration would mean a better voice when dealing with international stakeholders.

“We hold the opportunity to influence the energy security conversation being held around the world,” he said.

On February 19, both the Trinidad and Tobago Prime Minister and President of Guyana made calls for collaboration among Caribbean states in energy.