Wade Mark: NiQuan plant worth $2.28b

OPPOSITION Senator Wade Mark lamented the possible loss of money invested by many entities into developing the NiQuan plant at Pointe-a-Pierre, plus the loss of generous state subsidies in the project but noted the plant has been valued at $2.28 billion, with the company overall valued at $3.2 billion.

He called for an accounting of all these monies, speaking at a UNC briefing at party headquarters in Chaguanas on November 3.

Originally set up as the State-run World Gas-To-Liquids (GTL) project by former Petrotrin chairman the late Malcolm Jones, the plant was designed to convert natural gas into fuels like synthetic diesel or kerosene which would be sulphur-free, unlike fuel derived from the fractional distillation of crude oil.

Mark noted the recent appointment of a receiver for the NiQuan project.

Like its WGTL predecessor, NiQuan had not met expectations, especially after two incidents, including an explosion plus the death of an employee.

Amid its financial travails, Mark revealed he recently learnt that NiQuan was worth $3.2 billion inclusive of its $2.28 billion plant. He said the night before the UNC briefing, he had learnt of this from a valuation report by auditors Ernst and Young in 2016. He said this report had been among several documents Republic Bank had submitted to a judge to try to make a case not to liquidate the company.

He said Finance Minister Colm Imbert ought to have known of this valuation report.

Mark recalled the NiQuan company acquired the plant from the State for $35 million, the payment for which was partially done by giving Petrotrin $25 million in preferential shares in NiQuan and partly by a $10 million payment due. Mark asked if the $10 million had ever been paid.

Amid receivership, he asked about the shares.

"Are they redeemable?"

Saying the State had lost $3 billion in the failed WGTL deal, he asked if the State was now set to lose another $3 billion by way of NiQuan.

Noting the local banks and credit unions which had invested in NiQuan, Mark asked about the fate of those sums.

He said NiQuan's debentures - that is, unsecured loans – had totalled US$175 million or $1.2 billion.

"Where the money gone?

"Who is looking after the taxpayers' interest, the public interest?"

Mark alleged NiQuan owed $100 million to the Upstream Downstream Company, a subsidiary of the National Gas Company (NGC), for its gas supply.

Saying Petrotrin Legacy had leased its lands to NiQuan that housed the plant at Pointe-a-Pierre for US$180,000 per year, he asked, "Has NiQuan been honouring their payments?"