The announcement that T&T will be licensed to develop Venezuela’s Dragon Gas Field won’t magically fix T&T’s decimated energy sector, as first gas from this project is years away, says the Opposition UNC.
However, Venezuela’s Foreign Affairs Minister, the T&T Chamber of Industry and Commerce, Heliconia Foundation and former UNC stalwart Dr Devant Maharaj, have all welcomed the announcement that T&T has received the US government’s approval (via OFAC waiver) to develop the gas field.
Various quarters responded yesterday, following Prime Minister Dr Keith Rowley’s announcement on Tuesday of the breakthrough development, which allows T&T to resume doing business concerning the Dragon Field with Venezuela’s sanctioned state PDVSA company.
The licence, issued at T&T’s request, is geared to enhance Caribbean regional energy security. It marked further easing of energy sanctions on Venezuela.
The Financial Post yesterday stated the decision was the result of “extensive diplomacy” between US Vice President Kamala Harris and Caribbean leaders who’d sought assistance to deal with higher energy prices, following Russia’s 2022 invasion of Ukraine.
Harris spoke to Rowley on Tuesday, the Post reported. However, the Post said the Nicolas Maduro regime won’t be permitted to receive any cash payments from the project and this could make it difficult for T&T to “craft a deal with Caracas.” It quoted unnamed experts saying it could take years “for investment and development to bring Venezuelan gas to T&T and boost LNG to Europe.”
Yesterday, Opposition UNC Whip David Lee (Energy spokesman) said,” The UNC has never criticised the Dragon Gas deal. We’ve always raised questions on the timeline of implementation back in 2017/2018 because this Government highlighted it as the key to ending the gas shortage, which we knew fully well was not possible. The UNC was vindicated in its questions for the national interest, as the project was indeed delayed.”
He added, “The recent announcement will not magically fix T&T’s decimated energy sector, as first gas from this project is years away.
“This announcement, while offering potential in years to come, doesn’t change the vulnerable grim energy reality that this Government has driven T&T’s oil and gas production to its lowest in 18 years because they’ve failed to innovate the sector outside of this Dragon Field.”
Lee said the announcement offers little comfort when exploration and monetising of gas within our own borders continue to be a problem.
“The licence for Dragon cannot take away that the Government has suppressed and decimated other avenues for increased gas production, through its lack of innovation by failing to implement proper fiscal incentives which would drive production up,” he said.
“T&T needs average 4.1 bcf of gas per day to meet its proper demand, yet we are only producing 2.8 bcf. Dragon was not the key to meeting this demand. The key to this demand was increased innovation and creating an environment that encouraged more exploration.”
Lee added, “There’s also cause for further concern, as even with Washington’s granting of Trinidad’s (sic) request, they haven’t authorised payments to Venezuela, which could make it difficult for Trinidad to craft a deal with Caracas.
“So, we’re years away from first gas.” He said the UNC was highlighting the reality that “...This Government still doesn’t have an answer for more gas in the short/medium term, as the Dragon Field and all other major gas projects listed by them are years from first gas.”
Browne: “Venezuela delighted”
Foreign Affairs Minister Dr Amery Browne, who’s at a CELAC summit in Argentina, yesterday said Venezuela’s new Foreign Affair Minister, Yvan Gil Pinto, approached him during the summit and “expressed his delight at the announcement” made on Tuesday.
Energy Minister Stuart Young didn’t reply to queries on feedback received from regional colleagues on the development, when T&T and Venezuela will meet to craft the way forward and how it will work if Venezuela isn’t allowed payment and what arrangement T&T would use.
The T&T Chamber of Industry and Commerce stated, “We view this information released on the possibility of participating in access to explore the opportunities which Dragon Field provides, as good news for T&T.
“This will provide opportunities along the value chain from the upstream producers of LNG to the downstream petrochemical industries. It should lead to enhanced economic activity and enhance the country’s values in the global energy sector.”
Possible buffer to T&T—Devant
With an anticipated increase in electricity, which follows an increase in petrol and diesel, along with increasing food prices, the Dragon Field deal may just be the lifeline T&T needs to buffer the possible economic hardships that lurk on the horizon, former UNC MP Dr Devant Maharaj said yesterday.
“With the present global economic climate anticipating a worldwide recession, T&T’s population must congratulate the T&T Government with the waiver to explore the Dragon natural gas field,” he said.
“With those sanctions, however, now lifted it, clears the way for T&T to substantially benefit from the arrangements. The Government must be commended and supported in ensuring that this effort materialises in the fastest possible time to benefit the population.”
The Heliconia Foundation for Young Professionals also hailed the news as a significant development for energy security in the Caribbean and Europe, particularly in light of the war in Ukraine.
Heliconia congratulated Prime Minister Rowley and the Government “on its remarkable achievement” of the US government’s approval.
“This is a significant development for energy security in the Caribbean and Europe, particularly in light of the ongoing war in Ukraine, and is testament to the diligence and dedication of this Rowley-led administration. This momentous achievement will bring invaluable benefits to the people of T&T, including economic growth, job opportunities and other prosperous outcomes.”
It added, “It’s a positive step forward for our country and a stellar example of diplomacy at work. It must never be forgotten this administration has been careful to preserve long-standing relationships with the USA and Venezuela, even when in the case of the latter, it was deemed unpopular to do so.”
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