Green light for Cypre offshore gas project

28 Sep 2022

bpTT confirmed that it is proceeding with the development of its Cypre offshore gas project.

This decision followed recent meetings of Prime Minister Dr Keith Rowley, Minister of Energy Stuart Young, bp CEO Bernard Looney and incoming President for bpTT David Campbell where they discussed accelerating the project’s sanction.

Cypre will become bpTT’s third subsea development. It will include seven wells and subsea trees tied back into bpTT’s existing Juniper platform via two new 14 kilometre flexible flowlines. Drilling is due to commence in 2023 and first gas from the facility is expected in 2025. The Cypre gas field is located 78 kms off the southeast coast of Trinidad within the East Mayaro Block, in water depth of approx. 80 metres. At peak the development is expected to deliver average gas production of 250-300 million standard cubic feet a day (mmscfd). Production from Cypre will satisfy existing gas supply commitments bpTT.

The Cypre development forms part of bpTT strategy of maximizing production from existing infrastructure, identifying innovative solutions to bring gas to the market faster without adding operating emissions. This subsea development will capitalize on the existing subsea enabling infrastructure at Juniper allowing gas to be brought to market in a shorter time than a normally-unmanned installation (NUI) development. The new development will access power from Juniper, eliminating the need for additional power generation which allows production to be added without increasing operating emissions.

Incoming bpTT president David Campbell said: ‘The go-ahead for the Cypre development is great news for Trinidad and Tobago and for bpTT, as it demonstrates our continued commitment to investing in our business here. Today’s announcement is a great reflection of our strategy in action – efficiently developing the resources in our existing acreage so we can bring new gas to the market faster, all without increasing operating emissions.’

Source: bp Trinidad and Tobago

 

Budget 2023

ALLOCATIONS

1. Education & Training $ 7.453B
2. Health $6.892B
3. PSIP $6.2B
4. National Security $5.798B
5. Social Grants $5.453B
6. Works and Transport $ 3.748B
7. Public Utilities $2.823B
8. Rural Development and Local Government $1.887B
9. Agriculture $1.330B
10. Housing $0.974B
11. Tobago: $ 2.521B

 

Energy Chamber hails fiscal measures

Sep 26 2022

The Energy Chamber thanked the finance minister for collaborating with the Energy Chamber toward making changes. to improve the fiscal environment in the energy sector.

“The Energy Chamber welcomes measures put in place by the Ministry of Finance to improve the fiscal environment under which the upstream energy sector companies operate in Trinidad and Tobago. We wish to thank the Minister of Finance, Hon. Colm Imbert for collaborative engagement with the Energy Chamber toward making these changes.

The reductions in the Supplemental Petroleum Tax (SPT) rates for new wells in marine fields and the extension and expansion of the changes introduced in 2020 for small onshore producers are welcomed and will help the economics of new investments in oil projects. The Energy Chamber has advocated changes in SPT for over a decade and this change represents the first major adjustment for offshore oil producers. The changes will also help create greater investor interest in the on-going onshore bid round.

The Energy Chamber welcomes the commitment from the Minister of Finance to meet with the oil and gas industry over the next three months to review further potential reforms to the fiscal regime. There are also details of the announced proposals that will be important to clarify, and get right, if we are to meet the objective of encouraging investment in new oil production.”

 

AMCHAM praises tax reductions to stimulate energy production

Sep 26 2022

The American Chamber of Commerce T&T (AMCHAM T&T) welcomed the reduction in tax rates to stimulate upstream oil and gas production in the 2023 Budget, read in Parliament.

“It is clear that the Minister of Finance attempted to balance several considerations in the 2023 budget.

We also think it prudent that an attempt is being made to contain expenditure. In our opinion, the budgeted gas price is reasonable in the current climate. We welcome reductions in the tax rates designed to stimulate upstream oil and gas production. In addition, the reduction in taxes for FinTechs and the Financial Services hub are laudable initiatives.

AMCHAM T&T looks forward to the operationalization of the SEZ legislation as a means of encouraging additional investment. We eagerly await the rollout of the Developers’ Hub and applaud the effort to develop software as a service for the Government sector. This software also has the potential to be exported and the Hub could incubate smaller technology companies. The identification of specific initiatives to support the transition to a cashless society and to remove the friction of transacting business with the Government are also likely to have a positive impact.

We are also anxious to see the results of the implementation of the restructuring of operations in the water and sewerage sector. Apprenticeships and vocational training as well as support for remediation in early high school life of students as we prepare our young people for the new economy are important and we support these measures. AMCHAM T&T also welcomes the announcement that the National Statistical Institute legislation will be brought to Parliament and we encourage bi-partisan collaboration as accurate and timely data is necessary for effective planning for national development.

AMCHAM T&T is also pleased that the Government would be implementing feed-in tariffs and is moving towards implementing a renewable energy policy – we believe this would not only reduce demands for the scarce natural gas to generate electricity, but the renewable energy policy would assist us in reaching our Paris agreement targets. We would like to hear concrete timelines for these during the budget debate. We are however disappointed by the lack of broad transformative initiatives. We expected the Minister to report on the outcomes of previous announcements and give clearer timelines for the implementation of new and repeated announcements such as the data interoperability framework, open data implementation and unique national identifier. We hope that there will be more specific announcements by line Ministers during the debate.

The outlook for increased production in the Energy sector in the short term is still uncertain. The stabilization of the economy remains precarious. Cross-cutting measures to improve the ease of doing business require further articulation. In particular, we are disappointed that there was no emphasis on Customs reform and digitization of the trade facilitation process. AMCHAM T&T stands ready and able to collaborate with all stakeholders on matters of national development.”

 

T&T Chamber reserved about significant budget impacts

Sep 26 2022

The Chamber of Industry and Commerce remains reserved about impacts of the 2023 National Budget,

“While the Minister of Finance Colm Imbert presented an optimistic 2023 National Budget, the Trinidad and Tobago Chamber of Industry and Commerce (T&T Chamber) remains reserved about significant impacts on the economy.

Despite the ongoing socio-economic challenges posed by inflation, heightened with the ongoing Russia-Ukraine conflict and geo-political tensions, the windfall revenue has seen the budget deficit reduced to $2 billion, from $9 billion in 2022. The estimated $8 billion revenue was derived from the increases to prices of main export commodities of oil, natural gas, and ammonia.

Given the reasonable benchmark for energy commodity prices, several initiatives outlined in the Budget such as cashless transactions, infrastructure projects, health, housing, information and communication technology and education kept in line with the Budget’s theme “Tenacity and Stability in the face of global challenges.”

Notwithstanding this, the Minister announced an increase in fuel prices. While the Chamber understands the need to limit the fuel subsidy, it is concerned about the impact on inflation and the population at this time.

Government re-iterated its intention to support Micro, Small and Medium Enterprises (MSMEs), and with the engagement of the private sector there can be significant and strategic growth of several sectors.
This is critical for the growth of the economy, as a MSMEs account for a major portion of the private sector and the Chamber welcomes the new long-term loan guarantee programme.

While we are heartened with the investment in agriculture, the Chamber questions what transformational impact the incentives would have on the sector.
Additionally, the Chamber looks forward to the full operationalisation of the Trinidad and Tobago Revenue Authority (TTRA) which would allow for a fair and efficient revenue collection.

In keeping with the theme of the ease of doing business, we know that many of the Digital Transformation measures are ongoing and urgent implementation should be pursued to facilitate an enabling environment for business.”

 

TTMA approves Budget growth projection

Sep 26 2022

The Trinidad and Tobago Manufacturers’ Association (TTMA) responded to the reading of the National Budget, “Tenacity and Stability in the face of Global Challenges”, in Parliament.

President of the TTMA Tricia Coosal stated that the Association commends the Government on the partnership and dialogue with the private sector to ensure the economy continues to stabilise and grow following the impact of COVID-19 and the ongoing Russia-Ukraine war as evidenced by the announcement of an expected revised real GDP growth of 2% and growth of the non-energy sector by the same 2%.

“The importance of ensuring the Ease of Doing Business was once again stressed by the Minister via the pledge of digitization though the strengthening of the Single Electronic Window and implementation of the electronic fund transfer framework to allow businesses to make payments to the Government by the business community … these are needed and welcomed initiatives. TTMA has advocated for a more efficient tax collecting mechanism, stressing the importance of widening the tax net as opposed to further burdening the already compliant population of the country. TTMA looks forward to operationalisation of the Trinidad and Tobago Revenue Authority in 2023 and anticipates that this facility would allow for greater efficiencies in the tax collection.”

In an effort to assist business on industrial parks, “The Association looks forward to Phase 3 of the modern state of the art industrial park – Phoenix Park. The announcement of Phase 3 and the eventual roll out of a trade and exhibition centre at the industrial estate is welcomed as many synergies exist with TTMA’s annual Trade and Investment Convention.”

“The Government’s initiative to further the operationalization of the Manufacturing Apprenticeship programme and the Export Booster Initiative as well as increasing the allotment of the Foreign Exchange facility at EXIM Bank are pleasing deliverables. The Government continues to signal the trust it places in the manufacturing sector to continue within a framework or public-private partnership to lead the charge on diversification of the economy as evident by the 17% increase in exports. We look forward to the specifics of the EXIM facility, which has worked really well for the SME exporters among our membership.”

The TTMA supports the Government’s commitment to the CARICOM Heads of Government goal to reduce the region’s export bill by 25% by 2025 via the budgetary allocation of $300 Million into agriculture incentive and infrastructure programmes to assist with food security and diversification in the agro processing sub-sector of manufacturing. Additionally, the rebate of $25,000.00 for the implementation of renewable wind and solar energy in agriculture will support the further development of this sector.

It applauded the Government’s commitment to SMEs via the injection of $500 Million – in partnership with commercial banks – for long term guarantee schemes for SMEs, guaranteeing 80% of loans for up to 10 years. This guarantee, coupled with the increase in the maximum funding of exporTT’s Grand Fund Facility from $250,000 to $340,000, will work to strengthen SMEs’ competitiveness and increase their contribution to the exports of the non-energy sector.

On Government’s announcement of VAT payments of $4 Billion in 2022, however,, “The Association hopes the disbursement of VAT refund continues rapidly in the coming fiscal since the SME sector specifically suffers significantly from cash flow when payments are outstanding. As a result, TTMA looks forward to a continued roll out for its members, in a timely manner, for fiscal 2022-2023.

On a post-budget event with TTMA membership, to discuss how the new measures are going to help the sector, “We look forward to this engagement where many questions will be asked and answers will be provided by the Minister of Finance and other leading experts.”

 

Budget 2023 figures and announcements

Sep 26 2022

Fiscal Figures:

• Revenue $56.175B
• Expenditure: $57.685B (Oil Revenue – $25.019B, Non-Oil Revenue – $30.150 & Capital Revenue – $1.006B)
• Deficit: $1.51B
• Oil price assumption is US$92.50 and natural gas US$6 per MMBtu.

Fiscal measures:

1. Prices of Premium and Super fuel to raise by $1/litre and Diesel by 50 cents. Premium fuel will now be $7.75 per litre, Super $6.97 per litre, Diesel $4.41 per litre and Kerosene $4.50 per litre.
2. Increasing personal income tax from $84,000 to $90,000/year, meaning anyone earning $7,500 or less will be exempt from paying income tax from January 1, 2023. A total of 300,000 to benefit and will cost the government $450M per year.
3. $1,000 one-time transport grant to all recipients of social grants. A total of 175,000 people will benefit.
4. Airbridge to increase from $150 to $200 one-way. Increase will be $50 million to Caribbean Airlines.
5. Seabridge, people over 60 to pay $25 one-way. Standard ticket to be raised from $50 $75 one-way. Premium cabins will increase from $100 to $150 one-way. Effective January 1, 2023.
6. GATE to be provided to anyone who already accessed it at lower levels – diploma, associate degree or lower levels to be allowed to pursue GATE.
7. VAT registration threshold to increase from $500,000 to $600,000 per year from Jan 1 2023.
8. Rebates up to $25,000 for investment in renewable energy.
9. One-time manufacturing tax credit for companies that make investments in new machinery, production lines and equipment up to a maximum of $50,000. It will cost $50M if 1,000 companies utilise this tax credit. Effective January 1, 2023.
10. Increase investment tax credit from 25% to 30% to stimulate exploration and development. The loss will be $20M annually.
11. Decrease petroleum profit tax from 35 per cent to 30 per cent for companies in deep water exploration.
12. Fine for illegal timbering to rise from $20,000 to $100,000 from January 1.
13. Scrap iron fines for stealing and other offences to increase from $15,000 to $100,000.
14. To increase by 100% all firearm user licence fees with the exception of assault weapons which will now have significantly higher license fees. Will restrict the ownership of assault weapons from January 1, 2023.
15. Tax amnesty on penalties and interests in taxes owed up to December 2021. The amnesty will run from November 14, 2022 to February 17, 2023.

Economy:

• T&T has $US6.8 billion in reserves or over 8 months of import cover.
• Economy expected to recover with real GDP growth of 2 per cent.
• The fiscal deficit has been reduced to $2.43 billion, down from $9.1 billion at the time the last Budget was read.
• Deficit of 1.3% of GDP expected in 2022.
• US$163 million deposited into Heritage and Stabilisation Fund.
• Based on the current borrowing and repayment schedule, Government expects no significant increase in our debt from December 2021 to 2022.

Energy:

• The decline in natural gas production that began in 2020 has been reversed. T&T to end the year with production at 2.75 million standard cubic feet per day.
• Government will adjust the Supplemental Petroleum Tax Regime to motivate more companies to produce more oil.

People & Jobs:

• In Fiscal 2023, Government to allocate the sum of $210 million as a special payment to be distributed to health workers in T&T, involving ex-gratia payments to over 20,000 health workers.
• The Minister announced that over 90,000 persons in Public Service have kept their jobs and paid salaries on time and that over 50,000 jobs in the wider sector have been kept whole.

Housing:

• Government expects to have the full operation of Trinidad and Tobago Mortgage Bank in early 2023, a merger between T&T Mortgage Finance and Home Mortgage Bank.

Property Tax:

• Government intends to begin collecting Property Tax in 2023. Legal framework already in place but simple amendments required before the end of 2022.

Fuel Prices:

• • The fuel subsidy will cost taxpayers $2.2 billion in the coming year. “We are firm in our view that this level of expenditure on fuel is not productive and that taxpayers’ money could be better spent elsewhere.” Money spent on fuel subsidy should be capped at $1 billion. A further adjustment in fuel prices is required. Premium fuel will now be $7.75 per litre, Super $6.97 per litre, Diesel $4.41 per litre and Kerosene $4.50 per litre.

Public Sector Wages:

“We are firm in our view that our current offer of 4 per cent over 2014 to 2019 for the mainstream Public Service, although it would be a challenge to raise the required funds, is practical and equitable.”

• Fuel subsidy could cost up to $50 billion if union demands are met. Our offer of a 4 per cent increase is the best we can do. Even at this level we will have to dig deep to find the $4.6B in back pay stemming from this.

Road Repair:

• A further $100 million has been allocated to Road Repair company, making immediately available, a total of $200 million for the repair of secondary roads. Additional allocations also provided to 14 municipal corporations. Also raised $250 million for PURE for Fiscal 2023 and Ministry of Works given $1 billion in development programme in 2023.

Agriculture:

• Additional sum of $300 million for agriculture incentives, infrastructure and programmes in this year’s Budget.

Small and medium-sized businesses:

• Government to allocate $500 million – in partnership with commercial banks – for a new long-term loan guarantee scheme for small and medium entities. First Citizens will manage in collaboration with other commercial banks. Govt guarantee will be 80 per cent of loans for up to 10 years.

HDC housing:

• Government will provide $1.5 billion to the HDC in 2023 to refocus on its mandate to construct affordable housing. The sum will come via three loan guarantees – $500 million for the restart of stalled projects, $500 million to settle debts owed to contractors and a further $500 million for the construction of new units.

Tobago:

• Tobago to be given $2.521 billion which represents 4.3% of the total Budget. This breaks down as $2.194 billion for recurrent expenditure, $300 million for development, $18 million for URP and $9.2 million CEPEP. This represents an increase of $185 million over last year.
• Also $125 million is accessible through loan financing finalised earlier this year and a further US$15 million in loan financing arranged.
• A total of $735.5 million allocated to various ministries and state agencies to undertake and execute major programmes in Tobago under Sixth Schedule of THA Act. This means the overall allocation of expenditure in Tobago exceeds $3 billion.

$57.6B Budget hits poor man as fuel prices rise again

Sep 27 2022

1. Motorists began paying higher prices for Premium, Super and Diesel fuel, and kerosene..
2. From January, senior citizens will  pay $50 or more for a return ferry ticket to Tobago and the airbridge round trip price for all will also increase to $400.
3. A temporary $1,000 allowance for recipients of social grants will deal with the impact of fuel price hikes and people earning $7,500 or less are exempt from income tax .

These are among items in the 2023 Budget, Tenacity and Stability in the Face of Global Financial Challenges  delivered by Finance Minister Colm Imbert in a four-hour address in the Parliament.

“Despite the enormous difficulties and challenges that we face, I am confident that the resilience and support of our citizens, combined with the wide range of policies, projects and programmes which we have put in place, will sustain the momentum of the economic recovery. Having faced and overcome the many financial and economic challenges of the last seven years, we will make a positive difference in the lives of our citizens and leave no one behind.”

• Imbert delivered a $57.68 billion Budget – $4B more than the 2022 Budget. It was based on oil price and gas prices of US$92.50 per barrel and US$6 per MMBTU. The projected deficit for 2023 is $1.51B.
• Education, Health, and National Security received the top three highest allocations – $7.453B, $6.852B and $5.798B respectively.
• The Tobago House of Assembly received $2.521B – a little more than the $2.357B which the then-PNM-controlled THA received for the 2022 Budget.
• But THA’s 2023 allocation was less than the $3.97B which THA Chief Secretary Farley Augustine had requested.

Imbert, who said the last seven years had “been particularly challenging for us, financially, as a country,” gave a guardedly optimistic outlook.

• He noted that while the preliminary second quarter data is very encouraging, some analysts now expect “mild recessions” to occur in the US and Europe later in 2022 and into early 2023.

“Consequently, we in T&T need to continue to be careful, since a global recession will lead to lower oil and gas prices, which means reduced revenue for T&T.”

Explaining the fuel price hikes, Imbert noted Government’s previously expressed view that it is unproductive to spend more than $2 billion per year subsidising fuel and this money could be better spent elsewhere from social grants to creating jobs.

“Accordingly, with oil prices still in the US$90 range, we are of the firm view that another increase in fuel prices is regrettably required. We have therefore decided to increase, as of today ((yesterday), the prices of premium and super gasoline, and kerosene by $1 per litre and diesel by 50 cents a litre.

The new prices are Premium gasoline ($7.75), Super gasoline( $6.97), diesel ($4.41) and Kerosene ($4.50). The cost of LPG remains fixed at $21 for a 20-pound cylinder of cooking gas.”

Imbert added, “This lower level of increase in the price of diesel compared to the other motor fuels is being implemented to reduce the impact of an increase in price of this very important fuel, which would have wider effect, especially on the most disadvantaged groups.”

To alleviate the effect of the increases on the most vulnerable, he added, “We shall, in 2023, give all recipients of social grants – public assistance, disability, food support and senior citizens pension, a one-time transport grant of $1,000.

“This transport grant facility is temporary and shall remain in place only in so far as the price of oil remains at elevated levels.”

Imbert, who noted that senior citizens over 60 didn’t pay for ferry travel before, announced a $25 one-way ticket cost. Standard Class tickets will also rise to $75 (one way and Premium to $150 (one way).

1. The airbridge fare was also increased from $150 one way to $200 – making a return ticket cost to Tobago $400.
2. Tax amnesty, GATE expansion, 100 per cent increase in FULS fees
3. Imbert also maintained Government’s four per cent position on public sector wage negotiations with one addition.
4. He said the Budget includes $210 million for ex gratia payments to over 20,000 health workers.
5. Apart from the expansion of the tax exemption limit from $84,000 to $90,000 – allowing tax exemption for those earning $7,500 and less – there will also be a tax amnesty from November 14, 2022 to February 17, 2023.
6. The Government Assisted Tertiary Education (GATE) programme will be relaxed to assist students who need to work and study at the same time or can’t afford to study full time.
7. Tuition will be provided for those students who have already accessed GATE at the diploma, associate degree, or lower TVET level, to pursue baccalaureate level degree programmes.
8. From January 1, there will also be a 100 per cent increase in fees for Firearms Users Licences, except assault weapons, which will now have significantly higher license fees than other types of firearms.
9. Ownership of assault weapons and associated ammunition by private citizens will also be restricted. While law is being prepared for this, licence fees for ownership of assault weapons in private hands will be increased to $5,000 per year, while the annual license fee for ownership of an assault weapon firing range use will be increased to $1,000.
10. $100,00 fine for scrap iron stealing, trading

Other measures from January 1 include:

• Fines for selling/stealing/trading/receiving scrap iron increased from $15,000 $100,000.

• Heavier penalties for illegal quarrying, including levy/seizing equipment found at quarries.

• Penalties for illegal state timbering increased to $100,000.

• Oil pollution fines increased from $10,000 to $100,000.

• An Apprenticeship Allowance to encourage businesses to hire persons aged 16 to 25 for via allowance of 150 per cent for all remuneration paid.

• Three-tiered subsidy for Housing and Village Improvement Programme.

• Proper resources for TTPS funding equipment and support.

• Increased agricultural grant increase from 50 per cent to 75 per cent, plus increased funding from $250,000 to $340,000 for all producers of alternatives to wheat flour.

• Concessions for small/medium businesses include a new 500m long-term loan guarantee for up to 80 per cent for value of loans up to 10 years, including with focus on non-energy sectors.

• Renewable energy rebate for agriculture.

• Supplemental Petroleum Tax adjustment motivating companies to produce more.

• Public Sector Investment Plan increased by $2B to $6.2B.

Also in 2023 …

• $200m for Secondary Road Repair Company

• Rebates for low-income groups after utility rate hikes finalised

• Property tax Tribunal Board selected and chairman to be appointed.

• T&T Revenue Authority Director General sourced by year-end.

• Government guaranteed loans totalling $1.5B for HDC to handle stalled projects, pay debts and refocus on housing unit construction. New HDC subsidiary companies for construction, property management and unit sales.

• Increased fees for Commissioners of Affidavits

• Land for former Petrotrin employees at eight sites.

• Commonwealth Youth Games.

• National Population Census

• National Statistical Institute bill will need Opposition support for passage

• Gambling Control commission begins revenue collection

• Phoenix Park Industrial Estate leases to be issued in early 2023 for 78 lots and five factor shells – generating 4,500 jobs

• Help to digitise tourism systems; three new hotels totalling 600 rooms; Royal Caribbean making increased calls.

• New Health Ministry HQ completed in 2023 will save $12m annual rent

• Far-reaching positive consequences from seven new BPTT wells to be drilled by 2025.

 

UNC- Budget of fluff, lies and broken promises will increase suffering

Sep 26 2022

Opposition Leader Kamla Persad-Bissessar says Minister of Finance Colm Imbert’s 2023 Budget presentation is nothing but “fluff, lies and repeated broken promises.”

The Budget ignored the harsh realities of the economy and Government was doing the groundwork to justify their reason for going back to the International Monetary Fund.

“It provides no cogent strategic policy prescriptions to halt the ongoing economic contraction by generating new revenue streams.”

Instead of concrete policies designed to get people back to work and the economy back to health, the Budget was littered with click-baiting buzzwords and outright lies.

“The increased fuel prices will further raise the cost of living and food prices. The Minister has boasted that the population have not rioted yet, so the feelings of the people remain unheard.”

The Budget will only hasten the decline into chaos and disorder and “sets the stage for dangerous times ahead.. I know there will be an increase in suffering. I will not like to say poverty is the cause of criminality, there are so many other factors.”

With $210 million to be distributed to over 20,000 healthcare workers for their role during the COVID-19 pandemic, Persad-Bissessar questioned why no provisions were made for police officers.

“He talked about a $210 million for the health sector workers, it sounds really good, but there is absolutely no detail about who, where, what and it reminds me of agriculture in every budget, I’m (Colm Imbert) giving 500 million dollars in incentives and by the end of the year not a cent was spent. … no details, it is absolutely vague. When you reward a team with the highest national award and other awards at the Republic Day awards, you reward them for presiding over a country that has one of the highest death rates in COVID. Why didn’t you give the TTPS, the TTPS were even more burdened than the health workers.”

She took aim at “spranger taxes” or “spranger revenue measures,” noting the policies will not create solid measures to earn revenues. Government pushed the country into a debt trap and debunked claims by Imbert that debt to GDP has been stabilised. While it is uncertain yet as to whether she will take her allotted time to respond to the Government’s budget, she said the four-hour long presentation by the Finance Minister was unwarranted.

“Of course, I’ll take my four hours if I can, but that was pure sufferation for people, to sit down there for four hours and only listen to fluff.”

 

STATE ENTERPRISES INVESTMENT PROGRAMME 

Link to 91 page .pdf document with detaiked tables of the 2023 Programme, with index.

https://www.finance.gov.tt/wp-content/uploads/2022/09/State-Enterprises-Investment-Programme-2023.pdf

 

BUDGET Raised Fuel prices offset by tax exemptions

Sep 28 2022

The price at the pump has increased, but from January the personal income tax exemption will also rise.

Finance Minister Colm Imbert said both of these changes,in the 2023 Budget presentation are in the best interest of the economy and net each other off.
While addressing the Trinidad and Tobago Manufacturers Association Post Budget discussion the Minister felt too little focus was on the rise in personal allowance exemption from $84,000 to $90,000 per annum ($7000 to $7500 per month) given its’ sizeable cost to the treasury. This would benefit the recovery of the economy, as the public would now have more spending power. This was a positive move which he believed could offset the rise in fuel prices as the government sought to address the rising cost of the fuel subsidy.

“That’s going to cost the treasury $450 million, it’s not a small thing. If we had increased it from $7000 to $8000 it would have cost us $900m, so we have decided to give up that $450 million in revenue to put more disposable income into the hands of consumers…the multiplier effect in terms of GDP, in terms of that extra $450m in the hands of taxpayers, will result in an increase in GDP in excess of $450 million dollars. … More disposable income in the hands of consumers, boosting sales, boosting trade, boosting economic activity, but we couldn’t give up that $450 million if we decided to leave the price of fuel at the lower rates, we just wouldn’t have the money. So it’s a trade-off, that’s one of the trade-offs we did in this budget. We decided to give back that $450 million and we decided to cap fuel prices at a certain level,” he said.

The government has for some time expressed that the fuel subsidy needed to be addressed and signalled that the subsidy would be capped at $1 billion. During his presentation, Imbert announced increases with immediate effect of Premium, Super and Kerosene increased by a dollar to $7.75 per litre, $6.97 per litre and $4.50 per litre respectively while Diesel saw a 50-cent increase to $4.41 per litre.

Imbert gave more insight into the increases during the question and answer segment of the TTMA event.

“We set a cap at a billion dollars, and that is based on an estimated oil price and the known consumption of fuel in Trinidad and Tobago. Trinidad and Tobago consumes one billion litres of fuel more or less. Of which 400,000 thousand litres is diesel, so 600,000 litres of gasoline, 400,000 litres of diesel. So we know how much fuel motorists consume in Trinidad and Tobago. We also know what the cost of price of gasoline and diesel, based on an oil price. So the $1 billion cap is based on an assumption that the oil price will be somewhere between $80 to $90, that’s the $1 billion cap,” he said.

The price could be adjusted downward if the oil price also drops internationally. However, either way it would create a problem for the government as if it did drop, so would government revenue.

“We have based this budget on $92.50, so the prices that we used are based on that oil price. The cap is going to work both ways. And there is a problem both ways. If the oil price goes up, our revenue goes up of course but the price of fuel goes up so we have a problem there. But if the price of oil goes down, the revenue goes down, the price of fuel goes down. But we are committed to the 1 billion dollar cap, so if for some reason, and we hope that it won’t happen too severely, let’s say the price drops to $80 or something like that it will go below the figure that we have put for the cap and we will make an adjustment in the other direction. That’s the plan.”

The Finance Minister noted that if the price of oil moved up or down by even a few dollars, the country’s revenue stream is impacted by hundreds of millions of dollars in either direction.

“For every five dollars that oil price fluctuates the effect on our revenue is about $600m. If oil goes up to $100 we get an extra $600m. If it drops five dollars we lose $600m. We have used the best available advice and picked $92.50,” said Imbert.

High prices internationally had contributed to a far better fiscal performance last year than expected and had the subsidy cost not been a factor, the government could have even balanced the budget.

“We had expected a deficit in 2022 of $ 9 billion, we ended with a deficit of $2 billion. We have done very well. In terms of the fiscal deficit, this is probably the lowest fiscal deficit the country has had for about 12 years. It’s probably the lowest,” said Imbert, “We could have balanced the budget. If we didn’t have to put money into the heritage and stabilisation fund we put in $1.1 billion and if we didn’t have to spend $2 billion on subsidising fuel we would have balanced the budget, but we decided to do it. We had to do the heritage fund by law because that’s the law and well the fuel subsidy is another story.”

The budget was set with an oil price of $92.50, which was below the projections made by several reputable financial institutions around the world.

“We looked at about 10 organisations that forecast oil prices and virtually every single one of them was forecasting an oil price in 2023 of $95. So we decided to be a bit conservative and go with $92.50. We don’t have a crystal ball, we’ll see how that works out,” he said.

The trade-off concerning the price of gas and the tax exemption was not the only fork in the road encountered by the Finance Minister. There was the possibility that more money could have been allocated to Public Sector wage negotiations as opposed to being invested in the development of the manufacturing sector.

“We could have decided ok, we would increase our offer to the unions by $2 billion, and use the $2 billion for that. But we didn’t think it made any sense, we made our offer, and we think our offer is very reasonable. We decided instead to put an additional $2 billion into the productive sector,” said Minister Imbert.

The government has currently tabled an offer of four per cent to the unions.

 

DIRECTORS’ REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2022 The NGC Group of Companies

Sep 29, 2022, 10:21 AM

https://media.ngc.co.tt/wp-content/uploads/2022/09/2022-09-28_financial-statements_six-months-ended-30-june-2022.pdf

Link to two page .pdf  document with the six months financial statements for the National Gas Company of TRinidad and Tobago Limited.

 

MEDIA RELEASE: NGC GROUP’S FINANCIAL PERFORMANCE BOLSTERED FOR THE FIRST HALF OF 2022

HTTPS://MEDIA.NGC.CO.TT/MEDIA-RELEASE-NGC-GROUPS-FINANCIAL-PERFORMANCE-BOLSTERED-FOR-THE-FIRST-HALF-OF-2022

Sep 28, 2022

The National Gas Company of Trinidad and Tobago Limited Media Release NGC Group’s financial performance bolstered for the first half of 2022 September 28, 2022

The NGC Group continues to show marked improvement in its financial performance according to Summary Consolidated Financial Statements for the Six Months Ended 30 June 2022.

1. For the financial period, The National Gas Company of Trinidad and Tobago Limited (NGC) together with its subsidiaries (collectively the Group) recorded a profit of TT$1.6B.
2. This represents a 260% increase over the TT$437M profit recorded in 2021. The Group posted revenues of TT$16.6B, which were TT$7.1B greater than revenues of TT$9.5B for the same period in 2021.
3. The rebound of commodity prices which started trending upwards in 2021, have remained strong, largely due to impacted supply coming out of Europe because of the ongoing war between Russia and Ukraine. This rebound has positively impacted The NGC Group’s revenues and margins.
4. The financial performance of the Group is also reflective of its incisive leadership and the intentional execution of its new Strategic Plan to 2025. On the upstream side of the value chain, parent NGC has continued to work with suppliers to achieve gas supply stability for its domestic customers.
5. The company is encouraged by the first gas announcements from Shell for its Colibri project and De Novo for its Zandolie project.
6. Other projects by Touchstone and bpTT are on track to further secure supply over the coming months.
7. Moving to the downstream, In February 2022 NGC bolstered its energy marketing and trading portfolio, signing an agreement with Proman to lift methanol cargoes from MHTL’s Point Lisas facilities.
8. In support of the local construction industry, NGC executed a Gas Sales Contract with Trinidad Cement Limited (TCL) in March 2022.
9. Alongside internal negotiations, NGC has been active in the collaborative discussions with the GORTT and other Atlantic shareholders, with negotiations now well-advanced. The work for the subsidiaries has been critical to growing the commercial success of the Group.
10. As part of PPGPL’s international expansion, the Group member completed the acquisition of the NGL Terminal in Hull, Texas, United States in January 2022. The footprint of this facility allows for further access to markets in Mexico and the USA thereby diversifying the Company’s income stream. Sustainability and green agenda initiatives were also progressed.
11. In May 2021, NGC officially joined the Global Oil and Gas Methane Partnership (OGMP). As part of the commitment as a OGMP member, NGC voluntarily submitted its first Upstream and Mid-Downstream report to the OGMP for the 2021 reporting cycle. This report included the techniques, strategies and management systems that demonstrate the path it will be taking to reduce methane emissions sources.
12. Keen on accelerating industry-wide action, NGC also facilitated discussions between the Ministry of Planning and the Point Lisas Energy Association to discuss mandatory reporting of GHG emissions.
13. As the Group works to expand the Green Agenda, it is simultaneously expanding its network of partners working towards the same cause of a cleaner, sustainable future.
14. In May, NGC signed a Memorandum of Understanding (MOU) with the Caribbean Community Centre for Climate Change (CCCCC) to cooperate on activities that can positively impact regional climate change mitigation efforts.
15. In June, in the context of climate change also impacting the ability to grow food, NGC announced a partnership with Nutrien Trinidad and Tobago to explore opportunities to improve food and nutrition security in Trinidad and Tobago. The NGC Group will continue to build on the milestone successes of the first six months of the year. The Group remains optimistic about its revenue outlook for the rest of 2022.

Through the ingenuity and steadfast commitment of the leadership and staff, the work to successfully to evolve the business will continue. The Group remains dedicated to pursuing every opportunity to create value for the people of Trinidad and Tobago.

The full Consolidated Financial Statement for the six months ended 30 June 2022 are available on NGC’s website at https://media.ngc.co.tt/summary-consolidated-financial-statements-for-the-six-monthsended-30-june-2022

For more information: Lisa Burkett, Senior Manager, Corporate Sustainability The National Gas Company of Trinidad and Tobago Limited (NGC) Orinoco Drive, Point Lisas Lisa.Burkett@ngc.co.tt 

 

BPTT   drilling to boost  gas production

 Sep 06 2022

 BP Trinidad and Tobago (BPTT)  announced the arrival of its Joe Douglas Drill Rig to turn its fortunes around and lead to higher production.after  a major fall in natural gas output. Figures from the Ministry of Energy in the last two years show  BPTT daily production declined by almost half, averaging  just over one billion standard cubic feet per day (bcf/d),  compared to the 2019  figure close to 2 bcf/d.
The company was looking forward to its infill drilling programme which will include both exploration and development drilling in its Columbus Basin acreage. The  rig will  proceed to the  Mango Field, approximately 48 kilometres from  Galeota Point off the coast of Guayaguayare.
Mango field was a significant discovery for BPTT, with estimated recoverable reserves of over 2 trillion cubic feet of natural gas. It played a crucial role in supplying gas to Atlantic LNG and BPTT  plans to extract  more from  its asset.

The company  will commence a drilling programme in early October upon the rig’s arrival. This drilling programme is key for BPTT to continue to find and develop small pools of resources within the Columbus Basin.

The first phase of the drilling programme will involve development drilling of three wells in the Mango field and one well in the Savonette field. If this drilling phase is successful, these gas resources will be processed through the existing Mango and Savonette production platforms and it could add production in late 2022/early 2023.

The second phase of the drilling program will include the potential for three additional wells in the Angelin field and this phase is currently progressing through the sanction process.

Claire Fitzpatrick, outgoing regional president, BPTT said, “We are excited to welcome back the Joe Douglas drilling rig to BPTT. This rig signals the resumption of our small pools (infill) drilling programme. This drilling programme is aimed at getting after smaller pools of resources in the Columbus Basin. These smaller pools are close to our existing infrastructure which means we can bring gas online quickly—this will help deliver the secure, affordable and lower carbon energy that the world needs.”

bpTT and NGC sign milestone gas contract for future supplies

Release date: 23 September 2022

The National Gas Company of Trinidad and Tobago Limited (NGC) signed a milestone gas supply contract (“GSC”) with energy major, bp Trinidad and Tobago (bpTT), securing a future domestic gas supply.

Loquan remarked that the contractual negotiations for future gas supply began several months ago, and this signing represented a continued collaborative relationship between the two companies. The spirit of the negotiation process, was respectful, mature, productive and professional, with both teams working assiduously to put this critical contract in place to drive upstream investments.

Claire Fitzpatrick shared the importance of the renewal of the contract to bpTT, which will underpin future upstream investment decisions that the company was looking forward to taking and will contribute to the continued longevity of the petrochemical industry. She reinforced the important relationship that bpTT and the NGC have maintained for decades and praised the teams involved in the negotiations for their diligent and efficient work.

Loquan thanked the NGC Board, and commended all involved at NGC for their professionalism and commitment. He thanked Claire Fitzpatrick, for her open communication during the process and the hard work by the bpTT team , with tight deadlines and timeframes involved. The upcoming period will continue to be challenging for the Trinidad & Tobago energy sector even with this contract in place, due to continued decline of existing upstream gas fields, and other upstream investments which did not perform as planned. Energy efficiency, particularly gas utilised for power continues to be a focus for NGC. He took the opportunity to wish Claire all the best in her next endeavours and to welcome David Campbell, bpTT incoming President

bpTT is the largest supplier of gas to the domestic market and the renewal of this contract, allows NGC to secure a significant volume of gas for the coming years to help fulfil domestic demand. While neither Loquan nor Mrs. Fitzpatrick could disclose the specific details of the contract as these are governed by a confidentiality agreement, they acknowledged the timeliness of the signing, and the resounding commitment of both to the success of Trinidad and Tobago’s energy sector.

The Minister of Energy Stuart Young commented, “…this is another critical milestone in securing the future of Trinidad and Tobago’s energy sector and ensuring our energy security. NGC has stayed the course and it cannot be over emphasised how significant it is that we have negotiated and secured a future supply of gas from bpTT in advance of the expiry of the current arrangements. I congratulate NGC on securing a contract for continued supply of natural gas for the downstream. The signing of the GSC signals that there is significant value to be extracted from the country’s hydrocarbon resources for the benefit of all citizens and that bp remains committed to Trinidad and Tobago as an investment in its group of global assets.”

The Government will continue to work closely with all stakeholders toward building the resilience and sustainability of the energy sector, which remains the bedrock of the nation’s economy.