T&T’s mothballed refinery in Pointe-a-Pierre does not fit into Guyana’s plans for its energy future, that country’s Natural Resources Minister Vickram Bharrat has said.
In fact, Bharrat says Guyana is actively considering constructing its own refinery, as it aims to become self-sufficient when it comes to energy.
“We’re looking to build our own refinery in country,” Bharrat said in an interview with News Room Guyana following a panel discussion at the international energy conference here at the Guyana Marriott yesterday, as he addressed overtures made by T&T Prime Minister Dr Keith Rowley on Tuesday, for regional countries to look at the Pointe-a-Pierre refinery as an option.
“We are trying to ensure that we are self-sufficient in terms of energy, so that’s why we are moving towards setting up the refinery in country,” he added,.
Bharrat said that the government has already issued a Request for Proposals for a privately-owned 30,000-barrel-per-day oil refinery in East Berbice-Corentyne and that a decision will soon be made on the nine proposals received so far.
According to Bharrat, Guyana currently requires 15,000 barrels of oil per day and with the growing energy demand, it is believed that the refinery will be sufficient.
Although Guyana is not considering the mothballed Petrotrin refinery at Pointe-a-Pierre, that will have no impact on the relationship between the two countries, he said.
“Trinidad has the experience and the expertise as well too and quite honestly, we haven’t been focusing too much on gas,” he said.
“We have spent a lot of our time on oil, rightly so, because of the price of oil (but) because of the way the world is going, the demand for oil might not be long lasting but gas is seen as a transitional fuel,” he added.
On the opening day of the four-day conference on Tuesday, PM Rowley promoted the Pointe-a-Pierre refinery as a viable option for anyone interested in a refinery.
Rowley said the heavy dependence on imported energy has negatively affected the economic performance of many Caribbean nations and contributed to instability in both fiscal and external accounts, including T&T, which was importing most of its crude oil and then creating refined products with domestic needs and for the regional market.
“This import and refined model was being carried on with significant loan support from the national treasury. By 2018, in the absence of an improved crude oil supply, the accumulated debt and projections for sustained losses resulted in a restructuring of the state-owned company and this included the closure of the refinery, which, in the absence of a new source of crude, stands mothballed at Pointe-a-Pierre in Trinidad,” he said.
“This refinery and its supporting infrastructure are available for restart, upgrade and use on reasonable terms to any interested refiner or crude supplier,” he added.
Later in his address, as Rowley spoke on the proposed Dragon Gas Field deal, he again reminded the attendees of the availability of the refinery for sale.
“We are still exploring the market for a user for the refinery as mentioned,” he said.
Energy Minister Stuart Young told Guardian Media on Tuesday that proposals for the refinery keep coming in.
“The Prime Minister has again drawn reference to the fact that in T&T, there is an oil refinery that remains available. We are constantly, through TPHL (Trinidad Petroleum Holdings Ltd), looking at proposals because we continue to receive proposals, but if Guyana is interested that is something we have told them we would welcome.”
Speaking earlier in the day yesterday, Bharatt also addressed Guyana’s local content law, which caused some contention between businessmen from Guyana and T&T last year.
“Local content legislation is in no way a hindrance to investment coming into Guyana. It was never designed to be a hindrance to development or investment coming into our country, because we do need investors, we need partners to develop our resources in this county. We cannot do it alone,” Bharrat said.
He said Guyana is open for business.
“As a government, we have an open-door policy to investment we have an open-door policy to any investor coming into our country,” he said.