In T&T: ‘Drop in production behind gas shortage’

7 February 2012

Tax revenue decline from natural gas the result of supply side deficiencies…Energy Minister says oil production down since 2006.

The ongoing natural gas supply shortage at the Point Lisas Industrial Estate has resulted in a loss of revenue because of reduced production at plants, Energy Minister Kevin Ramnarine has admitted.

Ramnarine told reporters yesterday at the Trinidad and Tobago Energy Conference 2012 at the Hyatt Regency (Trinidad) in Port of Spain: “Any loss of revenue at Point Lisas is a cause for concern. When the plants produce less, the government gets less corporate taxes.”

Since mid-last year, scheduled maintenance at major production rigs of upstream suppliers coupled with contract negotiations over gas pricing policies amongst Government, suppliers and buyers have all contributed to the insufficient supply to downstream companies at the estate.

Ramnarine said he expects some relief in the situation when EOG’s Toucan Platform comes on stream in late March, but not completely. He said he was meeting with the Pt Lisas executive association and upstream companies on Thursday to further discuss the matter.

“It may require an alignment of plant shutdowns to coincide with upstream shutdowns—a process referred to as sheltering,” said Ramnarine.

With regard to oil production, Ramnarine said there has been a steady decline since 2006.


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