NGC chairman: Nutrien shut-down benefiting other Pt Lisas companies

CHAIRMAN OF THE National Gas Company of TT Gerald Ramdeen said the Nutrien shut-down, which started on a phased basis in October, has resulted in other companies on the Point Lisas Industrial Estate improving their output.

Nutrien, a global supllier of fertilisers, announced the shut-down after a disagreement with NGC over port fees and the "lack of reliable and economic natural gas supply."

Nutrien produced about 85,000 tonnes of ammonia and 55,000 tonnes of urea monthly from its Trinidad facility.

Ramdeen told Newsday on November 17 that the NGC has redistributed gas molecules that used to go to Nutrien.

Ramdeen said as a result of the redistribution, the other companies on the estate such as Proman, Phoenix Park Gas Processors Ltd and Methanex, are now exceeding its daily quotas.

“For the very first time in a very long time, almost all of the plants on the Point Lisas Estate, as a result of the redistribution of gas, has been exceeding their daily contractual quantity (DCQ)

“Every molecule that you can give to a plant on the Point Lisas Industrial Estate, they are delighted to accept it. The redistribution as a result of the decision made by Nutrien has augured to the great benefit of all the other producers on the Point Lisas Industrial Estate,” he said.

He added that NGC has also been able to increase its capacity to send gas to Atlantic LNG.

“(That is) something that we are delighted at the NGC to be able to do,” he said. “Every molecule of gas that we are able to send to fill the capacity at Atlantic is something that augurs well for the people of this country.”

Ramdeen, Moonilal hail tariff removal

Ramdeen said the decision made by the United States (US) to remove the 15 per cent tariff on exports of ammonia and ammonia products will augur well for TT and its energy industry.

Ramdeen congratulated Minister of Foreign and Caricom Affairs Sean Sobers and Prime Minister Kamla Persad-Bissessar for presenting favourable proposals to the US government, which he said resulted in the removal of the tariffs.

“To be able to get such a drastic reduction that will only augur well for all the companies on the Point Lisas estate that produce products that will fall within that category – fertilisers, urea and agricultural products that come out of the energy sector as by-products of the natural gas process,” Ramdeen said.

Ramdeen told Newsday, as soon as the tariffs were imposed, companies had been calling on the government to see how it could negotiate with the US.

“In the energy sector we operate on very small margins, so any type of tariff that is imposed on these small margins is a very challenging consequence that has to be dealt with by these companies.

“We are delighted that the US has found favour with the proposals that have been made by the government. Any reduction of tariffs by the US is something that we welcome. It is only a good sign for the energy sector.”

Minister of Energy Roodal Moonilal also congratulated Persad-Bissessar and Sobers, as well as Minister of Trade, Investment and Tourism Satyakama Maharaj.

In response to questions from Newsday, Moonilal described the reduction of the tariffs as a “significant win for TT.”

“This move not only secures one of TT’s most important foreign-exchange earning industries, but also reinforces our country’s position as a reliable supplier within the global fertiliser supply chains.

“Crucially, by supporting the steady flow of nitrogen fertilisers to the US, the decision contributes to global food security efforts at a time of heightened agricultural demand. On a broader level, it strengthens TT’s exports, underscoring the nation’s natural-gas-based fertiliser production remains competitive and critical to key international markets, including one of TT's most valued trading partners, the US.”

In April, the US government imposed reciprocal tariffs on more than 180 countries with tariff rates ranging from ten per cent to 50 per cent.

In August, the US hit TT with tariffs of 15 per cent.

Persad-Bissesar also met with Secretary of State Marco Rubio to engage in high-level discussions in Washington DC. Sobers, along with Permanent Secretary and head of the Foreign Service Randall Karim met with officials in the office of the US Trade Representative.

A release from the Ministry of Foreign affairs on November 16 announced the result of the conversations held between the two governments, the exemption of ammonia products from the tariffs.

“TT will benefit from zero reciprocal tariffs on several qualifying agricultural products, including critical nitrogen and phosphate fertilisers entering the US market.

“This decision reverses the earlier action of April 2, when these items were removed from Annex II of Executive Order 14257 and subjected to a 15 per cent tariff,

“These products will now enter the US market duty-free, enhancing the competitiveness of TT’s exporters and protecting jobs across the national value chain.” the release said.

Young: Gov’t trying to hoodwink TT

In a post on social media former Prime Minister and Minister of Energy Stuart Young raised the issue of the Nutrien shut-down, saying it has negatively affected TT’s reputation, revenues, jobs and businesses in other industries.

He described the recent news of the removal of the tariffs as “smoke and mirrors.”

“The UNC government continues to attempt to hoodwink citizens and grasp at straws. The removal of tariffs by the US has nothing to do with the TT government. What does have to do with the UNC government is the shutting down of four plants by Nutrien which is one of the largest producers of ammonia and urea globally,” he said.