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  • 17 hours ago
The Finance Minister says the recent surge in global energy prices are a "mixed blessing" for this country since it exports natural gas products such as LNG and methanoal but also imports motor vehicle fuels due to the mothballed refinery.

However, speaking with the Atlantic Council while he is in Washington DC, the Finance Minister acknowledged "the events in the Middle East will bring some level of improvement in" the Government's revenues.

Juhel Browne reports.
Transcript
00:00It's been one month, almost to the date.
00:03We came into office at the end of April and we've been working steadily to make sure
00:08that Trenton Tobago gets developed as fast as possible, as efficiently as possible.
00:12Finance Minister Devengerath Tankou speaking during an interview with the Atlantic Council
00:17while attending the 2026 IMF World Bank Spring Meetings in Washington, D.C.
00:23We didn't expect this event in the Middle East.
00:27What we expected was a continuation of the development agenda that we had set as a government.
00:33So we had started negotiating with Exxon, with Shell, with international multinational agencies.
00:38We started doing deep water drilling, things that were not done previously.
00:42We had expanded energy production and gas production as well.
00:47There was a focus on the economic outlook for Trinidad and Tobago
00:50given the recent increases in global crude oil and natural gas product prices.
00:55Well, I think the regional developments, international global developments have, in fact, given Trinidad and Tobago an opportunity.
01:03I don't see it as totally negative, but it's a mixed blessing.
01:08Trinidad and Tobago is an energy exporter.
01:10So we export LNG, we export methanol, we export oil and gas.
01:15But we are also an importer of fuels.
01:18We used to have a refinery.
01:19It has been closed down for the last eight months.
01:21The current government is working diligently towards improving and re-establishing that refinery.
01:29The UNC-led government's budget for fiscal 2026 was partly based on an oil price of U.S. $73.25
01:37per barrel.
01:38Finance Minister Tanku spoke as global oil prices hovered at around U.S. $92 to U.S. $95 per barrel
01:46for WTI crude and Brent crude, respectively, after recently crossing U.S. $100 per barrel.
01:54So that the events in the Middle East will bring some level of improvement in our government revenues.
02:01We've already started seeing positive movements in terms of dividends, in terms of taxes, and more is still to come.
02:08What is happening as a result, though, is that we are seeing a blip, an upward movement in revenues.
02:16Over and above what we expected, we came out of 10 years of depression, 10 years of economic struggle, 10
02:25years of increasing debt.
02:26An apparent reference to the former PNM-led government, which has dismissed criticisms of underperformance in the local energy sector
02:34during its tenure.
02:36The UNC-led government has declared it is making progress.
02:40And the expectation was that by 2027, end 2027, into 2028, the economy of Tray-on-Tobago, at least the
02:47energy sector of the economy of Tray-on-Tobago,
02:49which is the largest foreign exchange generator, would have started to pick up and move upwards.
02:54We would have been working with the United States in terms of accessing the dragging gas in Venezuela as well.
03:00Those initiatives were outside of this Middle East event.
03:04And therefore, all that happened is in Middle East events, which would have given up the increased revenue, as it
03:11were, simply meant that we would get to our goal faster.
03:15There was an acknowledgement of the downside of recent increases in global oil and gas prices, which have impacted several
03:22areas of the global economy.
03:24Because shipping costs have gone up, there is the risk of importing inflation into Tray-on-Tobago.
03:30What we are trying to do, we import a substantial amount of our food stock.
03:34We import a substantial amount of our goods and services as well.
03:37What we are trying to do in Tray-on-Tobago now, and this again was the plan over the last
03:41year, was to increase domestic production.
03:44The finance minister is set to deliver the government's mid-year review of its 2026 budget soon.
03:51Jule Brown, TV6 News.
03:54Jule Brown, TV6 News.
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