Prime Minister Kamla Persad-Bissessar’s announcement on Labour Day of the formation of a government committee to develop a strategy for reactivating the Petrotrin Pointe-a-Pierre refinery has raised expectations of economic revival in communities shaken by its closure in 2018.
As that committee of worker representatives and technical experts tries to determine a way forward for the 108-year-old refinery, they must temper hope with a heavy dose of reality.
An economic kickstart is not guaranteed. It is likely to cost hundreds of millions in initial capital costs for turnaround works, modern controls and safety upgrades to bring Pointe-a-Pierre back online.
The third-generation technology in the mothballed refinery lags behind newer, more efficient plants in the region and in the current configuration, the high-residual fuels it produces will find few takers in a global market that is shifting toward low-sulphur distillates.
There is also the matter of global momentum toward electric vehicles, biofuels and green hydrogen, which threatens long-term demand for the conventional refined products expected to be produced at Pointe-a-Pierre.
The economic impact on surrounding communities also needs to be considered. Restarting an ageing refinery with higher emissions, more oily wastewater and solid wastes will mean lower air quality, noise, flaring and accident risks for those who live and operate businesses nearby.
On the upside, there is cautious optimism that reopening the refinery will give an immediate boost to the local economy, provide direct employment for engineers, technicians, operators and other industry professionals, as well as job creation in support of activities such as logistics, security, catering, admin and construction.
Less reliance on imports of refined fuels could shield local consumers from spikes in global oil markets and generate more predictable pump prices.
Pointe-a-Pierre could refine not just local crude but competitively priced Venezuelan or Guyanese oil, which could put this country in a stronger position in the Caribbean energy market as a hub of oil refining.
For any chance at sustainability and profitability, the systems and practices that made the old refinery a drain on the Treasury must be discarded once and for all. Instead, the refinery must be upgraded and transformed into a model for green industrial revival, fit for purpose in a lower-carbon future.
That means modernising the plant to reduce flaring, leaks, and energy waste to significantly cut emissions and improve efficiency and environmental performance.
Integrating solar or wind power into the refinery’s operations could also reduce reliance on fossil fuels; installing carbon capture and storage (CCS) to trap CO₂ emissions before they enter the atmosphere; sourcing lower-sulfur crude oil; and reusing water, recycling waste heat, and recovering byproducts can make the refinery’s operations more sustainable and cost-effective.
There are families and communities in south Trinidad who were hard hit by the decision to mothball the refinery as part of the closure of Petrotrin and restructuring of state-owned energy operations.
In addition to the 3,500 permanent and 1,200 non-permanent employees who lost their jobs, repercussions were felt beyond the refinery gates in surrounding communities like Gasparillo and Claxton Bay via business closures and job losses.
However, there cannot be a return to the pre-2018 Pointe-a-Pierre operations. Instead, the refinery’s revival, supported by strategic investments and timely innovations, should result in a significantly upgraded plant with the capacity to meet 21st-century energy needs.