00:00The Energy Chamber has taken note of an announcement by Finance Minister Davindranath Tanku in the House of Representatives on
00:07Wednesday.
00:08He said the government was in the process of establishing a fiscal review committee to look at the entire gas
00:14value chain,
00:15adding that TNT must be compensated for hydrocarbons entering the country.
00:20TV6 News reached out to newly selected Interim Chief Executive Officer of the Energy Chamber, Dr. Priya Maraj, concerning this
00:28announcement.
00:28She says, quote,
00:30We welcome the government's intention to establish a structured approach.
00:34Trinidad and Tobago needs gas at the volumes and price that allow this country to compete internationally and across commodity
00:42cycles.
00:43End quote.
00:44Dr. Maraj signals what she calls a strategic opportunity facing the country as it pertains to cross-border gas.
00:51But she says it is dependent on proper structuring and pricing, which according to her, once in place can be,
00:58quote,
00:58The feedstock that keeps Atlantic LNG competitive sustains our petrochemical sector and secures industrial gas supply for the long term.
01:07End quote.
01:08The Energy Chamber views it as a significant opportunity, adding that to ensure materialization and optimization,
01:15the fiscal structure will have to be aligned in a way that preserves the natural cost advantage that it says
01:20cross-border gas offers.
01:22Dr. Maraj outlines that the global LNG market in which the country operates consists of suppliers with varying cost bases
01:31and across commodity cycles where margins can be thin.
01:35By keeping imported gas at a competitive price, she believes this will strengthen TNT's hand on an international scale.
01:42The Energy Chamber's interim CEO adds that this is a shared interest for both government and the industry,
01:50as international competitiveness and revenue capture are complementary goals.
01:55Once TNT is able to become an attractive destination for gas monetization,
02:00the Chamber states that there will be job creation and a generation of sustainable revenues.
02:05Further to that, it says, it will protect the thousands of direct and indirect jobs that depend on LNG,
02:13petrochemicals and energy services and support the broader community of businesses the sector sustains.
02:20Minister Tanku pointed to the implementation of tariffs for multinationals using this country's energy assets,
02:26whether by way of processing, liquefaction and transportation of natural gas,
02:31as one of the possibilities in moving forward.
02:34He has also indicated that the government is in talks with multinationals concerning this proposal.
02:39In April, BP signed an agreement with Venezuela for the development of Coquina Mannequin,
02:45while Shell is in advanced negotiations pertaining to the law on manatee and dragon gas fields.
02:51Dr. Mirage outlines that if the government establishes the right framework,
02:55it will offer Venezuela a constructive outcome by providing a pathway for its natural gas resources to reach international markets.
03:02She points to mutual benefits such as economic value and regional stability.
03:07However, Dr. Mirage says,
03:08quote,
03:09Achieving that mutual benefit will require that the review committee take a broad view of value,
03:15not only what TNT can extract in tariffs,
03:18but what TNT stands to gain from a competitive, well-supplied and internationally relevant energy sector.
03:26End quote.
03:26Alicia Boucher, TV6 News.
Comments