Moonilal: TT to benefit from Iran conflict

ENERGY and Energy Industries Minister Dr Roodal Moonilal said Trinidad and Tobago stands to benefit from the conflict between the US and Iran, which resulted in at least two supertankers capable of carrying two million barrels of crude oil making a u-turn in the Strait of Hormuz after US airstrikes on Iran on June 22.

Around 20 per cent of global oil and gas supply is transported via the route.

“The impact of that, a decision taken by the Iranian parliament hours ago, is that we expect an increase in the price of oil. A rapid increase, they call it even an explosion in the price of oil,” he said during the fourth sitting of the House of Representatives on June 23.

On June 13, Israel deployed strikes on Iran, targeting its nuclear facilities. After failed talks between the US and Iranian governments, the US carried out another strike on June 21 targeting three major nuclear facilities.

In response, Iran’s parliament ordered the closure of the Strait of Hormuz on June 22, a decision that could have major impacts on the world’s energy supply and prices.

While expressing regret that the increase came under “war-like” circumstances, Moonilal said TT would benefit more if the previous PNM administration had not “presided over a decline” in the industry.

“We would have benefited more if they did not shut down the Pointe-a-Pierre refinery because today we have to import fuel products, the price of which may increase and the volume of oil produced is 37 per cent lower than in 2015.

“If you don’t have something to take to the market, if the price increases it will not affect you, how can it affect you if you have no goods to sell?”

Moonilal also noted developments in discussions with regional oil and gas entities in Suriname and Guyana for future partnership.

He also noted Shell TT's intention to increase gas production from the Manatee field.