Young: Restructured Atlantic LNG good for Trinidad and Tobago

ENERGY Minister Stuart Young says Government's decision to restructure Atlantic LNG (ALNG) continues to prove a wise decision to help strengthen the economy.

He also rejected reiterated claims from the Opposition UNC that the restructured company was a sell-out of domestic natural resources by the Government.

Young was responding in the Senate on April 16 to a question from Opposition Senator Wade Mark.

He reminded senators that the agreement to restructure ALNG was concluded last December.

"I hasten to add that it has never been done anywhere else in this world, but this government achieved it."

Young said the commercial terms of the agreements for ALNG trains two, three and four and "corresponding off-take contracts are subject to non-disclosure agreements, as is customary in the energy sector, and cannot be disclosed."

He told senators if these details were made public, it would make ALNG "uncompetitive in the world, because LNG is a global energy sector where there is constant competition for pricing and to secure contracts for supply."

Young said the merger of trains one, two and three, as outlined in the agreement, comes into effect in October.

He added that the initial shareholding of the National Gas Company (NGC) in ALNG has improved with the restructuring.

Previously NGC had shareholding of ten and 11.2 per cent in trains one and four respectively, but no shares in trains two and three.

The restructuring sees NGC with a ten per cent shareholding in each of the four trains.

Government senators thumped their desks when Young reiterated this was achieved "at no cost to the people of TT."

Mark claimed this was a sell-out of the country's resources.

Young replied, "It may surprise those on the other side, including Senator Mark, to know that this Government (engaged) in absolutely no sell-out."

He said Government's efforts over the last five years to restructure ALNG had been well publicised.

"We then embarked on five very difficult and complex years of commercial negotiation where we achieved not only better pricing, not singularly linked to Henry Hub (gas prices) which today is at US$1.71(per mmbtu), whereas we are getting over US$3 (per mmbtu), an increase of 40 per cent (with the new pricing arrangements which are linked to multiple gas indices)."

Government senators thumped their desks as Young said, "We also got third-party access to gas and an additional shareholding for the people of TT – not for as much as a dinner mint."

He angered opposition senators when he hinted that such negotiating skills were alien to the UNC.

"Unlike what happened in NGC (in) the 2010-2015 period, where the UNC specifically chose constituencies to use (contractor) SIS (Super Industrial Services) to build recreational grounds, to build the Beetham wastewater plant, to take $6-8 billion of cash for the people of TT out (from NGC) to fulfil their fantasies and their political ambitions, which led to a (general election) loss in 2015."

Young said the intention behind the restructuring of ALNG was to extend the company's life.

"Train one's liquefaction licence expired in 2018. So that brings to an end train one, unless it is extended.

"Additionally, trains two and three, the original licence expires in October of this year."

He asked, "Is it that the UNC's energy policy is to let two trains, two and three, just wither away or not continue when there is a lot of life left in it?"

In restructuring ALNG, Young said, "We have granted extensions (to the LNG trains) but with additional revenue terms, additional shareholding, additional access to third-party gas and a better structure for the people of TT for ALNG."

He added this will allow the company "to continue to provide for the future generations of TT well into the future and not expire in October of this year."

Young said that was the confidence and the competence "of a PNM government in the energy sector doing what is right to ensure for the future generations."