PM hopeful as first gas-to-liquids plant opens in Trinidad

NiQuan Energy Trinidad Ltd’s (NETL) gas-to-liquids plant has opened in Pointe-a-Pierre and is the first of its kind in the western hemisphere. And the Prime Minister said while the project was once “plagued by delays and cost overrun,” it has materialised into a victory and will aid in post-pandemic recovery.

In a release, the plant said it has a 2,400-barrel capacity and produces “high-performance, low-emissions energy products GTL Paraffinic Diesel and GTL Naphtha from natural gas.”

Dr Rowley said many people are aware of the “long, tumultuous” history of the plant and that it cannot be ignored. Construction began in 2007.

“We, as a government, do not see the world through rose-coloured lenses,” he said.

He said the internal management of the project by Petrotrin and WGTL (World GTL TT Ltd) was an “undeniable failure,” but government managed to make the best of the situation.

“Recognising the NiQuan project as an opportunity for the country to gain some benefit from an investment which otherwise could not have been operationalised, the Government facilitated this project by sourcing and securing a supply of gas to the plant, to a maximum of 31 mmscf (million standard cubic feet) per day per day through the TT Upstream Downstream Energy Operations Company Ltd.

“…People may ask what is successful about a plant that started construction in 2007 and has only just now been completed in 2021…If the project was written off as a failed attempt, as was the case before this initiative, there was nothing to be had except permanent financial losses, finger-pointing and political grandstanding. Thankfully there was another option.”

In 2018, NiQuan paid Petrotrin US$10 million in cash for the plant, with US$25 million to be paid in preference shares.

Rowley said, “Additionally, the government is expected to receive $2 billion in taxes and statutory payments over the life of the project.

“NiQuan’s investment represents the first major private investment in the downstream energy sector in recent times, despite difficulties in the global markets.

“This gas-to-liquids plant is a prime example of the successful development of the country’s export potential of higher value-added products, through the collaboration of the private sector, the banking sector and the government.”

He said NiQuan partnered with “highly-experienced experts,” including BD Energy Systems, Black and Veatch Management Consulting, Halder Topsoe and Emerging Fuels Technology and Junior Sammy Contractors Ltd and has got three consecutive A+ ratings by CariCRIS.

He said TT is now entering a global market expected to grow at a compound annual growth rate of 7.5 per cent from 2020-2025

“The plant’s products, in particular the zero-sulphur diesel, provide an excellent opportunity to monetise our natural gas resources through clean and environmentally friendly channels, while creating value right here in Trinidad.

“Against a backdrop of a world that is rapidly transitioning to cleaner sources of fuel, zero-sulphur diesel is a welcome addition to the range of products originating from TT, especially in light of developments such as the IMO’s stricter sulphur regulations that came into effect in January 2020.”

He also praised the company for being able to deliver this project during a global pandemic, adding that it will lead to an avenue for foreign exchange and jobs. He said over 700 people were employed during construction and 65 skilled workers are now permanently employed.

“Niquan has led the way out of what some called a junkyard, using a good business plan, superb expertise, co-operation and determination.

“As the State has successfully restructured Petrotrin, at this very location, it has left similar openings for the private sector, using the same attributes, to find opportunities to revive the existing suite of equipment which are available here.”

He added, “In the coming weeks the Guaracara refinery will be put out for interested proposals and we await the outcome of any successful accompaniment to NiQuan at historic Pointe-a-Pierre.”

The company’s CEO Ainsley Gill said it represents “a bridge from a dirty energy past to a cleaner energy future. It’s a bridge that everyone wanted to build but, for many reasons, most of them have failed. With this plant, NiQuan Energy has built the first bridge and there will be more, many more. And not just in TT and the Americas but around the world.”

" Our clean energy products will make a difference. That’s the belief that’s driven us from day one. It’s what we promised to deliver and we’ve kept our promise here today.”