Former Energy Minister Stuart Young has issued a stark warning about the potential economic fallout from the Trinidad and Tobago (TT) government’s current energy sector strategies. Speaking to the media outside the Red House in Port of Spain, Young criticized the government’s approach, which he claims involves “trying to extort” companies through unilateral rate increases. He argued that such measures could render TT uncompetitive in the global energy market, jeopardizing both revenue and jobs.
Young emphasized that TT is not the only country with natural gas reserves or the ability to attract global investment. He warned that other nations with larger reserves and more favorable terms could easily lure companies away from TT. The recent budget’s electricity rate hikes, coupled with increased estate-related costs, have already begun to deter investors, he said.
The former minister highlighted the broader economic implications, noting that reduced competitiveness could lead to significant revenue losses for the government, which relies heavily on taxation from energy exports. This, in turn, could strain public services, delay salaries, and cause shortages in hospitals. Additionally, job losses could ripple through the economy, affecting not only plant workers but also ancillary businesses, such as food suppliers.
Young pointed to the recent shutdown of Nutrien’s operations in Point Lisas as a case in point. The global petrochemical leader announced a phased shutdown on October 23, citing port access restrictions and unreliable natural gas supply. The closure has already impacted over 300 temporary workers and raised concerns about CO2 supply for the food and beverage industry.
In response, the National Gas Company of TT (NGC) collaborated with Proman to ensure an alternative CO2 supply. Proman successfully delivered the equivalent volume of CO2 at the same price as Nutrien, with necessary infrastructure completed by October 27. Proman’s Managing Director, Anand Ragbir, praised the swift efforts of his team, while Massy Gas Products Trinidad CEO Marlon Millet expressed gratitude for the collaborative solution.
Young’s warnings underscore the urgent need for TT to adopt more competitive policies to safeguard its energy sector and broader economy.
