Despite Trinidad and Tobago’s close association with, and perceived loyalty to Venezuela, Guyana should go ahead and give the twin island full access to its gas reserves and not worry about developing its own infrastructure. In this way, Guyana will avoid major investments and long waiting time for access to revenues from its gas reserves.
That’s the gist of the pitch made by Trinidad’s Energy Minister Stuart Young as he spoke this morning at the ongoing Energy Conference and Supply Chain Expo at the Marriott Hotel, Kingston.
Young expressed his firm belief that collaboration is key as it is needed to strengthen the collective voice of Caricom, Latin America and Africa.
With the Caricom Heads of Government meeting to be held in Guyana next week, Young chose to highlight collaboration as the strongest tool available in order to contribute to decisions being made around the globe that can directly affect region.
He said that many Caricom islands are facing the dilemma of what to do with their electricity grid as they are being pushed towards renewables. Noting that it will cost some US$14B to move Caricom island states to renewables, Young pointed to the lack of financing available to most jurisdictions noting that the move is therefore not realistic.
But, “We hold part of the solution in this dilemma for the rest of Caricom,” he said as he geared to make his pitch.
Young asked, of the more than 640,000 barrels of oil being produced in Guyana per day, “how much of that is actually being utilized for the energy security of the region?”
Young then noted that Trinidad’s ability to produce more LNG is known and there is existing capacity at the plants. “What we are looking for is access to proven reserves of gas. That can be, and must be an important part of the solution for Caricom islands as they move to update their energy production. “
He continued, “Natural gas is more efficient and there is a supply coming from T&T but we must have access to those proven reserves of gas.”
Young said that countries that now want to exploit gas resources will take a long time to realize the financial gains if the “right” approach isn’t taken.
He said, “It will take a time to be able to monetize the gas reserves. You have to bring it to shore, you have to create an industry on the shore, be it the production of electricity or LNG. All of those things cost billions of US dollars. How long will it take the people to get the returns of the revenue. Don’t you have to offer tax holidays, moratoriums incentives for the expenditure of those billions…Then have to put down the type of infrastructure for the shipping of it out and the recurring cost.”
Young said that on the other hand, if collaboration were to be had, Trinidad is ready and has the existing plug in. “Send your gas resources and you receive the return immediately. No wait, no moratorium, no need for incentives only immediate return on your natural resources that you then use for the infrastructure in your countries as a return for your people in the respective countries.”
