The Energy Year Trinidad and Tobago 2024

[Book Published by theenergyyear.com  online or Hard Copy  EUR135 or EUR220]

“Trinidad and Tobago offers significant advantages for any investor in both hydrocarbons and the emerging renewables sector.”

– Minister of Energy and Energy Industries the Hon. Stuart R. Young, S.C.

The Energy Year Trinidad and Tobago 2024 explores the continued efforts of players in Trinidad and Tobago’s energy landscape to ensure the sustainability and commercial viability of the energy market in the midst of regional energy developments and a sustainable energy transition. These efforts are exemplified in recent strides and agreements towards putting the nation on track to ramp up natural gas supply for its world-class downstream facilities.  [ Other years and other petroleum producing countries are covered by the same publisher in the same series.]

As Trinidad and Tobago is ideally positioned to collaborate with other regional oil and gas provinces such as Venezuela and Guyana, this edition also explores the excitement around the governments of Trinidad and Tobago and Venezuela collaborating on potential cross-border developments. These agreements are bolstered by the expertise of the multinational producers who will be leading the projects.

This book features dozens of interviews, including with:

1. 1. 1. Minister of Energy and Energy Industries the Hon. Stuart R. Young, S.C.
      2. Dr Joseph Ishmael Khan, Chairman, The National Gas Company of Trinidad and Tobago Limited
      3. Kellyanne Lochan, Country Manager, Trinidad and Tobago, Woodside Energy
      4. Frank Teelucksingh, Managing Director, Coastal Dynamics Limited
      5. Vernon Paltoo, President, National Energy
      6. Lincoln Ramjattan, General Manager, Tucker Energy Services
      7. Philip Julien, Founder and Chairman, Kenesjay Green
      8. Dominic Rampersad, President, Phoenix Park Gas Processors Limited
      9. Deborah Benjamin, Managing Director, Trinidad and Tobago, ASCO
      10. Mala Baliraj, CEO, Massy Wood Group

“As a leading exporter of LNG, Trinidad and Tobago is well positioned to take advantage of the potential market opportunities on the horizon.”-  –Dr Joseph Ishmael Khan, Chairman of The National Gas Company of Trinidad and Tobago Limited

The Energy Year Trinidad and Tobago 2024 also explores how the evolving global energy landscape is set to impact industry standards and business requirements. As global business requirements evolve to incorporate environmental and social factors, industry leaders are looking at how ESG reports and decarbonisation efforts can potentially impact their place in the market or even present new opportunities to provide services in this arena – from consultancy in carbon accounting and reduction strategies to government-level initiatives in assessing sequestration potential in mangrove forests.

This ninth edition of The Energy Year’s Trinidad and Tobago series provides existing and potential investors with up-to-date insights on major developments in the country’s energy industry and highlights how an evolving energy market is creating new opportunities for investment in the upstream, downstream and renewables sectors.

The Trinidad and Tobago Oil and Gas Licence Areas Map 2024 is a high-resolution PDF ideal for printing and displaying as a wall map. The map details stakeholder information for 122 licence areas and notes the location of every block under negotiation, licensed, to be awarded, open offshore, open onshore and offered in the Shallow Water Competitive Bidding Round 2023/2024. Unavailable acreage and the perimeter of the deepwater acreage are shown. This map is included with the physical The Energy Year Trinidad & Tobago 2024 report as a hard copy pull-out map. A digital map is included in the PDF version.

 

 

 

 

EOG Resources wins shallow blocks

2025, 01/30

Minister of Energy Stuart Young signed two production sharing contracts (PSCs) with EOG Resources after the award of blocks North Coast Marine Area NCMA 4(a) and Lower Reverse L to EOG Resources Trinidad.

The ministry said the award of these PSCs follows the Shallow Water Competitive Bid Round 2023/2024 from October 2, 2023 to May 27, 2024.

Energy companies were invited to submit bids for shallow water blocks off the north, east and west coasts of Trinidad and the west coast of Tobago.

At the signing ceremony, Young said, “EOG Resources continues to be very important to the fabric of the energy sector. We saw through the results of the Shallow Water Bid Round and the operators are invested in T&T. We at the ministry continue to ensure the relationship is as we have built it to be, with open communication and then we proceed to get more done.”

Managing director of EOG Resources Trinidad, George Viera said, “We appreciate all of the hard work that went into getting this done promptly. The last time we signed a PSC was in 2005 so it has been a while, approximately 20 years ago and we are excited to get this going.”

The execution of these PSC signifies the potential for increasing hydrocarbon reserves and ensures local development and economic growth through the payment of financial obligations by EOG to the government for research and development, training of nationals and scholarships.

EOG submitted bids for three (3) Blocks: (i) NCMA 4(a); (ii) Modified U(c); (iii) and Lower Reverse L.

These bids were evaluated by the Cabinet and EOG was the preferred bidder.
Block NCMA 4(a) is situated in the North Coast Marine Area (NCMA) in water depths of approximately 100-200 m.

Entry into NCMA marks a significant milestone for EOG, as it ventures into an area predominantly operated by other companies. Block Lower Reverse L off the South East Coast of Trinidad in water depths of approximately 80-200 m is located near the existing EOGRTL infrastructure and existing producing assets.

From January to September 2024, EOG’s production of crude oil and condensate averaged 1,264 barrels of oil per day, while for the same period, EOG produced an average of 338 million standard cubic feet per day of natural gas.

 

 

Integrated Intermodal Transportation Ecosystem

24 January

National Energy, LABIDCO and NHSL collaborate

National Energy Corporation of Trinidad and Tobago Limited (National Energy), La Brea Industrial Development Company Limited (LABIDCO) and National Helicopter Services Limited (NHSL) signed a Memorandum of Understanding (MoU) to establish a Sustainable Integrated Intermodal Transportation Ecosystem (SIITE). The two-year MoU aims to create a more efficient and sustainable logistics network by integrating maritime, aviation and land transportation services to meet the energy sector’s unique transportation needs.

SIITE seeks to deliver fast, reliable, and cost effective logistics solutions while reducing greenhouse gas emissions. Dr. Joseph Khan, Chairman of National Energy and LABIDCO, highlighted the initiative’s significance.

“SIITE represents another significant step forward in optimising our resources and services within the energy sector. By creating a seamless and integrated logistics ecosystem, SIITE will position Trinidad and Tobago as a leader in offshore logistics, strengthening our country’s competitiveness and supporting our national sustainability goals.”

Larry McIntosh, NHSL’s Chairman added “streamlining logistics within the energy sector is crucial, and SIITE is a key initiative in achieving this. By integrating multiple modes of transport, we are committed to transforming the logistics landscape, ensuring that helicopter transportation plays a vital role in meeting the evolving needs of the industry.”

Collaboration among the state agencies will modernise cargo and personnel transportation within the upstream sector, marking a new era in local energy logistics.

The project teams from National Energy, LABIDCO and NHSL included Larry McIntosh, Chairman of NHSL, Dr. Joseph Khan, Chairman of National Energy and LABIDCO, Executives from National Energy, LABIDCO and NHSL, Terrence Boodoosingh – Manager, Operations, LABIDCO; Dr. Vernon Paltoo – President, National Energy and General Manager, LABIDCO; Capt. Homer Solomon – General Manager – National Helicopter Services Limited.

 

 

TTNGL elects first substantive president

Jan 28, 2025

TTNGL appointed Sheldon Sylvester as its first substantive president, with effect on February 1, following his tenure as the company’s chief financial officer and principal officer since 2016. The announcement in a Notice to Shareholders posted by the T&T Stock Exchange, pursuant to Section 64(1)(b) of the Securities Act 2012, comes two months after TTNGL revealed it sought a viable solution to resolve its current dividend restriction.

Sylvester gained a Master of Business Administration (MBA) from Heriot-Watt University and holds professional memberships with the Association of Chartered Certified Accountants and the Institute of Chartered Accountants of Trinidad and Tobago.

He has over 30 years’ experience in finance and accounting in the manufacturing and energy sectors. He is currently the vice-president, Corporate Services & Business Development at National Energy Ltd.

In March 2022, Sylvester was seconded to act as president at NGC CNG, a position he held for one year. At PPGPL for 12 years he had responsibility for budgeting, forecasting, debt, and treasury management.

TTNGL was incorporated on September 13, 2013 by The National Gas Company of Trinidad and Tobago Limited (NGC) to enable public participation in an Initial Public Offering (IPO) to own an equity interest in Phoenix Park Gas Processors Ltd (PPGPL).

At the time of the IPO for TTNGL in 2015, Indar Maharaj was the interim president of the company until his departure later in 2015. Through an Initial Public Offering (IPO) in 2015 and an Additional Public Offering (APO) in 2017, individuals and institutions of Trinidad and Tobago hold 75% equity interest in TTNGL, while NGC holds the remaining 25%.

Whilst TTNGL was formed as a corporate entity in 2013, its underlying investment, Phoenix Park Gas Processors Ltd (PPGPL), has over 30 years of operating history in Trinidad and Tobago’s natural gas-based energy sector. In 2014 Dominic Rampersad was appointed president of PPGPL

In its latest financial statement, TTNGL reported a 153.2% boost in profit after tax for the nine months ended September 30, 2024, compared to the same period in 2023. It posted an after-tax profit of $82.8 million, up from $32.7 million in the comparative period of 2023. This resulted in earnings per share of $0.53, a rise of $0.32 compared to the prior year. TTNGL said this improvement was primarily driven by the enhanced profitability of its investment in PPGPL.

“Gas volumes directed to Point Lisas for processing averaged 1,062 million standard cubic feet per day, a slight increase over 2023. Additionally, Natural Gas Liquids (NGL) production rose considerably, with a 12.8% increase in NGL content due to an optimised gas supply mix from The National Gas Company of Trinidad and Tobago Limited (NGC).

This increased NGL output, 33.3% higher year-on-year, enabled PPGPL to capitalise on additional revenue from favourable Mont Belvieu (MB) NGL prices, which were 10.0% higher than the corresponding 2023 period.”

When the results were released, TTNGL chairman Dr Joseph Ishmael Khan commented: “We acknowledge that our shareholders are understandably eager for a resolution to the current dividend restriction and the anticipated timeline for implementing a viable solution.

The board and management remain deeply committed to addressing this issue as a priority, knowing the impact it has had on shareholder value. We are actively exploring pathways that, while complex, we believe will ultimately strengthen TTNGL’s ability to resume dividends and improve shareholder returns. We appreciate our shareholders’ patience as we work diligently to position TTNGL for sustainable growth and value creation.”

TTNGL reported a total comprehensive loss of $551.4 million for the year ended December 31, 2023, adding to the total comprehensive loss of $402.6 million for the year ended December 31, 2022.

 

 

 

PPGPL caused NGC loss

For the year ended December 31, 2023, the wholly State-owned National Gas Company of Trinidad and Tobago (NGC) reported an after-tax loss of $1.3 billion marking a sharp reversal from the $2.38 billion profit recorded in the previous year.

Addressing media in December, NGC vice-president of Finance, Technology and Risk, Narinejit Pariag attributed the $1.3 billion loss primarily to a goodwill impairment of $1.5 billion related to NGC’s stake in PPGPL.

“What is goodwill?     We wrote off $1.5 billion in goodwill. Well, goodwill in business is an intangible asset. It’s really what you pay above the fair price of an organisation or company.

So, if there is a company valued at $5 million and you acquire it for $7 million, that excess consideration is deemed to be goodwill. It’s something in the organisation that interests you, that you have decided…(to) pay a premium for…”

Goodwill, which is calculated by taking the purchase price of the company and subtracting the net asset value of the company, is tested annually.

In 2013, NGC recorded goodwill of $2.3 billion following its acquisition of Conoco’s 39% interest in PPGPL for $3.8 billion.

However, when the impairment was tested in 2023, it resulted in a charge of $1.5 billion, Pariag said. NGC’s acting president Edmund Subryan stated that despite the $1.5 billion impairment, PPGPL is still considered a “valid investment”.

PPGPL is owned by NGC NGL (51%), Trinidad and Tobago NGL Holdings Ltd (39%) and an investment consortium Pan West Engineers and Constructors, LLC (10%). NGC NGL is owned by NGC (80%) and by National Enterprises Ltd (NEL) (20%).

 

 

 

Remittances to ease forex challenges

26 January 2025

UWI Economics don, Dr Roger Hosein, believes the ‘low-hanging fruit’ of remittances from emigrants can alleviate foreign exchange challenges.

In his presentation to the University of the West Indies webinar on whether Caribbean countries were optimally using remittances to fund development, Hosein calculated the country could benefit from up to US $647.08 million annually if it were to capitalise on the 27 per cent of its population residing abroad in the US, Canada and Europe.

“They are not poor. Our diaspora abroad earns a fairly good median income in relation to all US workers over the age of 16 and therefore have the capacity to remit resources.”

Hosein acknowledged the need for a multipronged approach to solving the issue such as an increased focus on manufacturing, more foreign direct investment, more tourism and remittances.

Data presented by his colleague, economist Dr Regan Deonanan showed, though increasing, TT only receives around one per cent of GDP in remittances (US $162 million on average annually between 2014 and 2023), one of the lowest in Caricom.

Hosein said this equates to around US $131.80 per capita while the Caribbean average is US $594. While his figure of US $647.08 million is a best-case scenario, he said even a median number like US $400 million is significant.

“That’s a lot of remittances extra we can get if we were to pursue the right type of policies. That’s one of the frustrating things. This is a relatively low-hanging fruit.”

Apart from being a viable source of foreign exchange, Hosein said it could also be a stable one. This conclusion was based on an earlier assessment by Dr Dilip Ratha, lead economist and economic adviser to the vice president of operations at the Multilateral Investment Guarantee Agency (MIGA) in the World Bank.

Dr Ratha said up to 95 per cent of migrants from Latin America and the Caribbean (LAC) go to the US and find success in its relatively strong job market. This is why the region has had strong remittance growth in recent years. This is unlikely to change with President Donald Trump’s fight against immigration.

“They may not decline partly because…when countries back home have difficulty, people send more money home. Partly because people who were planning to go back home won’t go back home unless they really have to go back home because if they go back, they cannot come back so they will not go back.

So the number of people staying here (in the US), for all you know, might even increase. That would be more remittances going back home. And if people do return back home voluntarily, they will go home with the money they have saved.”

Ratha said data shows lower and middle-income countries received US $685 billion in remittances in 2024. That’s more than the US $382 billion received in foreign direct investments and the US $256 billion received in official development assistance, combined.

The World Bank economist advised against taxation or regulating recipients of remittances on how the money should be used as a way of gaining access to the money. Instead, he suggested creative approaches like implementing a diaspora bond.

“Diaspora bonds could be a very potent way of raising the level of financing in the Caribbean region. When people send money, they also save money in the US.

Migrants save money in the US almost a little more than how much they send to Central American or Caribbean countries. So that amount of money sitting in the US is often in a chequing account, or under the mattress…and the interest rate on those kind of savings is either zero or close to zero.

So if Jamaica, or Guyana or Barbados… wants to tap into the savings their migrants have in the US, we could issue a diaspora bond. Face value could be US $500, US $1,000 or US $2,000 and people who have US $1,000 or US $2,000 in their chequing account can buy that bond and the interest rate can be as high as four or five per cent in dollar terms.”

He suggested lowering the cost of sending remittances to encourage migrants to send money home.

 

 

 

Chamber – forex report must mean change

2025, 01/24

Oropouche West MP Dave Tancoo, Opposition Shadow Minister of Finance urged the local business community to demand fair access to foreign exchange (forex) from the government, following the publication by the T&T Chamber of Commerce entitled, “Challenges in Accessing Foreign Exchange” based on a survey of 111 of the Chamber’s member companies.

He has repeatedly cautioned the government about the foreign exchange situation, and said the report had given the business the evidence it needed to lobby for a change in the system.

“With the proof now before the business community, I am calling on them to demand fair access to foreign exchange; to demand that Colm Imbert stop his old talk and empty promises about economic recovery and forging pathways to prosperity. This Government is unable and unwilling to restore confidence in the economy, or even to attract local and/or foreign investment that is desperately needed. The only solution is change; we need change now.”

He questioned the state of the country’s debt .

“The fact that the country is in a foreign exchange crisis with foreign exchange reserves now at the same level as our foreign debt and with no new revenue sources on the horizon, it is not a question of ‘whether’ but rather ‘when’ Imbert will again raid the Heritage and Stabilisation Fund to prop up the forex reserves and create the illusion of forex stability.”

 

 

 

CBTT reaffirms commitment to green financing

24 January 2025

Dr Dorian Noel, deputy governor of monetary operations and policy of the Central Bank of TT , reiterated the bank’s commitment to address climate change and its risks. Noel told the Caribbean Green Infrastructure Conference (CGIC) 2025 in the Arthur Lok Jack Global School of Business on January 23 that, during the 63rd bi-annual meeting of the Caricom Committee of Central Bank Governors in Bridgetown on November 7-8, 2024, regional banking officials reiterated their dedication to greening the financial system.

Despite the Trump administration freezing over US$300 billion in funding for green infrastructure designed to improve environmental conditions, the CBTT remains committed to its net zero pledge of ensuring climate-related risks do not adversely impact financial stability.

“CBTT as well as our regional colleagues recognise the importance of climate change and we are moving very aggressively, incorporating climate change considerations into our operations.”

The banks are working to improve regional climate data; develop a consistent regional climate taxonomy to facilitate development of green instruments and markets and undertake climate assessment of the regional financial system.

CBTT is working on improving climate awareness and education through climate data reporting and disclosure. Noel urged improvements in the culture within the business sector as it pertains to climate action.

“Until recently, climate and climate-related concerts were not factored into mainstream finance and definitely not the production cost of businesses. Emissions were viewed as negative externalities and need to be addressed because they generate social costs.”

Since 2022, CBTT has been measuring its carbon footprint and working with the EMA to incorporate climate exchange considerations into procurement activities and work environment. The bank is fine-tuning its climate action plan which involves climate change consideration in monetary policy, conscious stability and internal operations.

CBTT invested around three per cent of the country’s reserves into green bonds which will be used to finance projects that contribute positively to the environment and climate.

Noel praised the work of local financial and non-financial institutions as they continue to work towards sustainability and green finance. In light of the US Federal Reserve withdrawing from the Network for Greening the Financial System – a network of around 114 central banks and financial supervisors that aims to accelerate green financing – he expects a reduction in the presence of US banks in green spaces.

This does not deter the commitment of CBTT and regional partners in their work towards boosting climate action. Noel is of the full view that green spaces, instruments, markets and infrastructure are still necessary and viable options. Hosted by the IAMovement and National Gas Company (NGC), the two-day CGIC focuses on green bonds and carbon credits.

 

 

 

Green bonds & carbon credits

2025, 01/24

Minister Brian Manning, founder and chairman of IAMovement Jonathan Barcant; head of the Multilateral Environmental Agreements at the Ministry of Planning and Development, Kishan Kumarsingh; and chairman of the National Gas Company Dr Joseph Ishmael Khan attended the Caribbean Green Infrastructure Conference, which was held at the Arthur Lok Jack Global School of Business in Mt Hope.

Traditionally, T&T has not considered the inclusion of green bonds, nor the use of the carbon markets as possible innovative sources of financing that can be integrated into the national budgetary process, largely as a result of the dependence on the energy sector for prosperity.

However, Minister in the Ministry of Finance, Brian Manning told the Green Infrastructure Conference 2025, that, given the need to pursue economic diversification aggressively and transition away from fossil fuels as agreed to internationally, both green bonds and carbon credits have the potential to become cornerstones of national climate finance strategies.

Green bonds can also play a crucial role in facilitating climate-for-debt swaps, thereby offering a powerful mechanism to simultaneously address climate change and sovereign debt issues. These instruments can be integrated into the national budget in the following ways:

• Green bonds for public investment: Funds raised through green bonds can be earmarked for large-scale infrastructure projects, such as renewable energy grids, sustainable transport and climate-resilient urban development;
• Carbon credits for revenue generation: By establishing robust carbon markets and pricing mechanisms, countries can create a steady stream of revenue for reinvestment in climate adaptation and mitigation projects;
• Linking Instruments: Combining the two tools can create synergistic effects—for example, issuing green bonds to finance projects that also generate carbon credits, creating a virtuous cycle of sustainability and investment.

As a first step, the requisite policy, legislative, institutional and administrative enabling environment need to be created.

That would enhance investor confidence and particularly incentivise the involvement of the private sector in public-private partnerships. While T&T intends to embark on that framework, a few issues would have to be addressed first including developing a framework that defines the scope, objectives,and eligibility criteria for the green projects the bonds will finance.

That framework must specify the types of projects eligible for funding, such as renewable energy, sustainable transport, clean energy and energy efficiency. An independent external review or certification would ensure that the green bond aligns with the standards and criteria for green financing.

NGC chairman Dr Joseph Ishmael Khan emphasised that the region needs to invest in building infrastructural resilience to survive current climate disasters and adapt their built environment to changing climate conditions.

For the region to build infrastructural resilience and implement projects for carbon reduction, it needs financial support – and in some cases legislative reform.

“We also need to invest in lowering the carbon footprint of our economic activities, through more sustainable energy, production and consumption.”

 

 

 

 

Mitigating ozone depletion

2025, 01/22

TT received US$543,259 in grant funding for the period 2023-2029, to assist in implementing national obligations under the first part of the Kigali Implementation Plan regulating the production and consumption of ozone-depleting substances. Dr Marissa Gowrie, Manager of the National Ozone Unit, Ministry of Planning and Development said grant funding for the implementation of the Montreal Protocol is provided by the multilateral fund of the Protocol.

Over the years through these funds T&T was able to provide training to technicians, access tools and equipment, support academic institutions, train regulatory and border control agencies, achieve technology transfer and upgrades to the policy and legislative framework.

The Montreal Protocol had a tremendous effect on aiding the world in arresting the deterioration of the ozone layer. Countries made a landmark decision in October 2016 to include under its mandate chemicals that used as ozone-depleting alternatives, but which have negative effects on the climate, such hydrofluorocarbons (HFCs).

“T&T signed on to this amendment to the Protocol, known as the Kigali Amendment, and as such incorporates the climate challenge into the work of saving the ozone layer.”

HFC gases, like other gases under the Montreal Protocol, are controlled under a licensing system mandated by the Montreal Protocol and administered nationally by the Ministry of Trade and Industry – Trade Licensing Unit, the T&T Bureau of Standards, the Customs and Excise Division, the Pesticides and Toxic Chemicals Inspectorate and the National Ozone Unit (NOU).

Implementation of the Kigali Amendment began on January 1, 2024, and going into 2025, all importers are reminded that the importation of HFCs, such as all refrigerant and refrigeration and air conditioning equipment and parts, requires an import licence prior to import issued by the Trade Licence Unit of the Ministry of Trade and Industry.

Importers of HFCs must also possess premises registration from the Pesticides and Toxic Chemicals Inspectorate for the storage of these gases if they are to be sold wholesale.

Importers are also reminded that:

1. A licence is required before import or export of all refrigerants as well as, refrigeration and air conditioning parts and equipment, which can be obtained from the Trade Licence Unit, Ministry of Trade, and Industry in accordance with the Imports and Exports Control Regulations 1941, Legal Notices No. 290 and 291 of 2014 and Legal Notices No. 212 and 213 of 2022;

2. In addition to this, for import or export of all Hydrocarbon (HC) refrigerants and HFC a licence is also required from the Pesticides and Toxic Chemicals Inspectorate by the Pesticides and Toxic Chemicals Act 1979 and Toxic Chemicals Regulations 2007 of T&T;

3. 3. Import of all assembled equipment using hydrochlorofluorocarbons (HCFCs) are not allowed into T&T;

4. Import of Methyl Bromide for non-quarantine and pre-shipment use and Halon are not allowed into T&T;

5. Premises registration is required for all chemicals which are classified as toxic chemicals under the Pesticides and Toxic Chemicals Act 1979 and Toxic Chemicals Regulations 2007 of T&T including butane and propane if sold by wholesale, packaged, or used in manufacturing;

6. Only quota holders will be granted licences to import HCFC refrigerants which include R22, R408, and R123. All other HCFCs are not allowed, including R141B and R142B or mixtures thereof, including polyols, used in foam manufacture.

These controls greatly assist in maintaining the national obligations of the Montreal Protocol.

Proper maintenance on a home air conditioning system will keep it running smoothly and prevent consuming excess energy .

“Additionally, general maintenance and periodic cleaning will save you from unnecessary costs associated with your utility bill and expensive repairs. It is recommended that you have a professionally certified technician to do yearly check-ups for your air conditioning system; to evaluate your system’s efficiency and to check for general wear and tear.”

Challenges still exist about ensuring that consumers make wise environmentally friendly choices in the purchase of refrigeration and air conditioning equipment and engage technicians who are professionally certified and practice good refrigeration practices.

“We must strive to be ozone friendly, which means taking individual action to reduce and eliminate impacts on the stratospheric ozone layer caused by the products you buy, the appliances and equipment that your household or business use, or the manufacturing process used by your company.

“Products made with, or containing, ozone-depleting substances (ODS) such as CFCs, HCFCs, halons, methyl chloroform, and methyl bromide can contribute to ozone layer depletion. Alternatives to these products, which are also not harmful to the climate, should be used.”

“We must also take the necessary steps to protect ourselves from the harmful ultraviolet rays emitted by the sun, especially on a tropical island such as ours. Using umbrellas, long-sleeved clothing, caps with brims, sunglasses, and sunblock with UV protection when going into the sun protects us from skin cancer, eye cataracts, wrinkling of the skin, and weakening of the immune system by shielding ourselves from UV rays.”

Planning and Development Minister Pennelope Beckles said reducing and phasing out these ozone-depleting substances will reduce rates of skin cancer, cataracts, weakened immune systems in humans, and damage to marine life and plant ecosystems due to excessive UV radiation reaching the Earth’s surface.

This process is important to the Ministry’s role in placing the environment at the centre of social and economic development as per T&T’s National Development Strategy – Vision 2030 and its commitment to the global Sustainable Development Goals (SDGs).

The National Ozone Unit of T&T was honoured in 2007 for the work that it has done to protect the ozone layer, and received the Montreal Protocol Implementers Award, in recognition of this country’s noteworthy contributions toward restoration of the Ozone Layer at the 20th Anniversary of the Montreal Protocol Celebrations, on Monday September, 17, 2007 in Montreal Canada.

 

 

 

 

Decline, deficits, debt and downgrades

2025, 01/19

A decade after Dr Keith Rowley was sworn in as Prime Minister in 2015, the shrinking economy is 17.6 per cent smaller than it was and the country is in a weaker state. In early January, the Prime Minister announced that he will not contest elections again and will retire from politics.

Economists were asked to examine economic data and assess his legacy in managing the economy over the last decade. Using the academic “A” to “F” grading system, the economists were also asked to rate the handling of the economy over the past nine years and four months that Rowley was prime minister.

He received a poor grade from two of the three economists who chose to give it. Colm Imbert was Minister of Finance from September 2015, when the People’s National Movement was re-elected to office.

University of the West Indies (UWI) economics don, Dr Vaalmikki Arjoon, who examined economic data during the last nine plus years of the Rowley administration, said real Gross Domestic Product (GDP) fell from $187.5 billion in 2015 to an estimated $154.5 billion in 2024, because of lower levels of energy production.

“This decline is evident in fiscal underperformance, heightened debt, rising poverty and inequality, diminished investor confidence, and deepening economic uncertainty.

Indeed, much of this decline can be attributed to reduced energy production—an industry accounting for roughly 30 to 40 per cent of GDP, together with effects of lockdowns, supply chain disruptions, and the global trade slowdown during the pandemic.”

Although the economy showed modest growth in the post-pandemic period, averaging 1.41 per cent annually since 2022, T&T has yet to catch up with pre-pandemic performance levels. Using International Monetary Fund data, 2024 GDP still lags 6.14 per cent behind 2019 levels.

“Growth was also hindered by increased taxes to compensate for the loss in energy revenues, like raising the corporate tax from 25 per cent to 30 per cent, and other numerous obstacles to business competitiveness, such as port clearance delays, difficulties obtaining licenses and permits, limited access to forex, and crime—all of which deter business operations, expansion and new investments.”

Investment flows in the past few years showed foreign investors have been withdrawing investment, with total Foreign Direct Investment (FDI) net inflows from 2015 to 2023 amounting to negative US$3.18 billion.

Arjoon highlighted data in the important energy sector. In the last nine years, significant declines in output, with natural gas, LNG and crude oil production falling by about 35 per cent, 45 per cent, and 36 per cent, respectively were largely due to maturing reservoirs and a slower-than-anticipated pace of new field development.

Fiscal performance
Fiscal data over the last ten years show that, naturally, decline in economic growth reduced revenue collection, leading to a nine-year cumulative deficit of $69 billion and pushing the Exchequer Account—the primary account for government spending (Consolidated Fund)—into an overdraft exceeding $47.76 billion in 2023, an increase of $14.4 billion since 2015.

The deficit was largely shaped by energy revenue volatility. Energy revenues, plunged from $18.66 billion in 2015 to $6.64 billion in 2016, remaining low during the pandemic, then surging to $29 billion in 2022 amid post-pandemic demand and the Russia–Ukraine conflict, only to soften again in 2024 as prices eased. Such deficit required borrowing to meet budget obligations, lifting the debt burden to $143 billion, $66.5 billion higher than 2015.

“Our external debt currently stands at US$5.5 billion, 147 per cent higher than 2015. Indeed, our persistent deficits and growing debt levels resulted in multiple downgrades by the credit rating agencies in the last decade.

Moody’s downgraded us three times (from Baa2 to Ba2), while S&P downgraded us four times (from A to BBB–), reflecting heightened concerns by the credit rating agencies about our economic resilience, fiscal sustainability, and capacity to manage structural challenges effectively.”

Moody’s rating places T&T in the speculative grade rating, indicating higher perceived challenges to service the country’s debt during economic downturns or adverse market conditions, while T&T is currently in the lowest notch of investment grade S&P.

However, he qualified this by saying that one reason why ratings did not fall further is the Heritage and Stabilisation Fund (HSF), growing from US $5.7 billion in 2015 to over US $6 billion in 2024.

Arjoon analysed one of the main complaints of the business community- a lack of foreign exchange to do business locally and internationally. Foreign reserves declined over the last decade, leading to the grim situation today.

“Our forex challenges largely stem from a sharp decline in earnings tied to reduced energy exports and lower tax revenues. Although the Central Bank of T&T (CBTT) injects US$100 to $150 million into the banking system every month, demand still far outstrips supply.

Consequently, our foreign reserves dropped from US$9.9 billion at end of 2015 to US$5.6 billion in 2024, partly propped up by external borrowing and withdrawals from the HSF. If we net out external debt, barely US$100 million remains—less than a week of import cover!”

Overall, the current account stayed in surplus for much of the last decade, though not as robustly as before 2015. Exceptions include 2022, when surpluses rose to US$5.2 billion due to high energy prices, albeit with weaker production, but dropped 70 per cent by 2024 as energy prices tempered with lowered consumption in PRC and rising non-OPEC+ supply.

Poor grade
Two other economists gave the PM a low grade for dereliction of the economy over the past nine plus years. Economist Dr Indera judged his economic legacy as mismanagement, grading his performance as “D.”

“There has been poor economic management. The economy has improved its import trading capacity while diminishing its export tradeable sectors. The result? Forex crisis, lack of sustainable job opportunities, brain drain. Add the inability to reduce crime and we have a recipe for socio-economic decay.”

Dr Anthony Gonzales also gave a “D” grade for the way Rowley handled the economy over the last decade.

“Real GDP has declined since 2015. Energy prices did not rise as high as they did between 2010 to 2014. Oil and gas production continued to fall. Since 2015, T&T has not developed new productive industries, especially for exports.

Except for some growth in beverage exports, both goods and services exports have not grown to take care of the fall in energy exports.

“Non-energy export diversification still remains a big challenge as the economy is today even more dependent on oil and gas exports.

Non-energy domestic production has grown a bit but that consumes a fair amount of our foreign reserves which have fallen considerably since 2015. So, the economy is not in a better shape today as compared to 2015.”

 

 

 

 

HSF rose to US$6.08B in September

2025, 01/18

The Heritage and Stabilisation Fund (HSF) reported total net asset value of US$6.08 billion for the quarter ended September 30, 2024, a 12.9 per cent increase on the US$5.39 billion value at September 30, 2023.

Compared to the quarter ended June 30, 2024, the total net asset value of the HSF was 5.65 per cent higher, reporting an increase of US$326 million.

The quarterly report stated, “For the quarter ended September 30, 2024, the HSF’s investment portfolio returned 5.74 per cent and outpaced its benchmark, which increased by 5.44 per cent. The declining interest rate environment provided a favourable backdrop for both bond and stock markets. Over the period, strong gains in the US fixed income and developed equity markets contributed to the Fund’s positive performance.”

The HSF outperformed by 30 basis points when compared with its strategic asset allocation (SAA) benchmark.

“Excess returns were driven by relative asset allocation positioning. In aggregate, the HSF’s larger exposure to stocks, in particular the US Core Domestic Equity mandate, outweighed the negative effect of the Fund’s under allocation to fixed income.

Collectively, external managers’ strategies were broadly neutral. While the US Short Duration and Non US Core International Equity mandates exceeded their respective market benchmarks, this was offset by the underperformance within the US Core Fixed Income and US Core Domestic Equity mandates.”

Of the total net asset value of US$6.08 billion as at September 30, 2024, the HSF held equities valued at US$3.08 billion and fixed income assets of US$3.0 billion.

In Global SWF, published on November 1, HSF chairman Ewart Williams and deputy Governor of the Central Bank, Dorian Noel, said, “Since its inception, the HSF has successfully fulfilled its stabilisation mandate and helped with the country’s sovereign rating, while growing its value and exceeding the target annual real return of 3.5 per cent…Looking to the future, the challenge will be the sustainability of HSF, which may imply a review of its funding model and asset allocation.”

Asked how the HSF’s asset allocation was evolving and if investments in private markets would be considered in the future, Williams and Noel said, “Post-pandemic, equity has continued to outperform fixed income, with US equities leading other markets. The risk environment has changed, and as a result, the board has recommended a review of the asset allocation constructed in 2008. A recent IMF mission reviewed this matter and is currently finalising recommendations. At this stage, we have not given consideration to private equities.”

The sovereign wealth fund was established in 2007 to stabilize the economy and save for the future.

 

 

 

BP axing 4,700 jobs globally

16 January

bpTT says it is “too soon” to determine exactly how the plan to cut 4,700 jobs globally will impact local operations.

BP, the U.K. energy giant, announced 4,700 job cuts worldwide, along with an additional 3,000 contractor roles, as part of a cost-saving initiative.

In an email to staff CEO Murray Auchincloss stated that these job losses “account for much of the anticipated reduction this year. The job cuts announced recently are one part of a broader transformation programme being undertaken by BP. It is too soon in the process to comment on how these changes will impact the Trinidad and Tobago business.”

Last October, BP said it had identified US$500 million of cost savings to be delivered this year, a quarter of the US$2 billion-target set in April by the end of 2026. Auchincloss said that the company is “focusing resources on our highest-value opportunities” and stopped or paused 30 projects since June.

The reductions come as BP tries to bring more digital capabilities into the business, with artificial intelligence increasingly playing a role in engineering and marketing operations.

“bp is focused on making our business simpler, more focused and higher value and reducing costs globally is one of the key enablers of achieving this goal. In Trinidad, we continue to look for opportunities to improve the efficiency of our existing operations, that includes how we more efficiently deliver our activity and lower our operating costs.

“We are making significant strides in delivering our strategy which includes maximising production from the Columbus Basin off the east coast while at the same time continuing to invest in developing gas resources that enable growth. We are actively pursuing the development of new acreage such as fields in the deep water and cross border and are continuously investing to bring more gas to the market.”

 

 

 

 

Local impact of global restructuring on bptt

 Energy supermajor BP is unable to share details on the potential consequences of global restructurings on local operations.

Responding to questions on the lower profit margins and job cuts, bpTT said, “The job cuts announced recently by bp are one part of a broader transformation programme being undertaken. It is too soon in the process to comment on how these changes will impact the TT business.”

Global restructuring follows a string of financial difficulties, with BP warning that its fourth-quarter results will be affected by weaker oil and gas production, declining refining margins and trading losses. Fallout from the unexpected resignation of former CEO Bernard Looney in September 2023, created uncertainty about the company’s direction.

The possible job cuts extending to TT-based operations remain an industry-wide concern given bpTT’s leading role. Despite the uncertainty, the company confirmed that its Capital Markets Day, originally set for February 11 in New York, will be on February 26 in London instead.

Restructuring forms part of a larger strategy shift under current CEO Murray Auchincloss, who replaced Looney.

Auchincloss signalled a move away from aggressive investment in renewables and low-carbon energy projects, refocusing efforts on higher-return oil and gas ventures. This pivot addresses challenges in the global energy market, including declining demand for gasoline and diesel, and oversupply driven by new refineries in Asia and Africa.

bpTT operations play a crucial role in the national economy, contributing significantly to TT’s energy output.

 

 

 

Lease Operators Limited

Lease Operators Limited completed acquisition of Trinity Exploration & Production plc (AIM:TRIN) on November 5, 2024.

Charles Anthony Brash Snr, Charles Anthony Brash Jr, David Brash and Daniel Brash were appointed directors of Trinity with effect from the Scheme becoming Effective.

SPARK Advisory Partners Limited, the Company’s Nominated Adviser will step down with effect from cancellation of admission to trading of Trinity shares on AIM. Admission to trading of Trinity shares on AIM will be cancelled with effect on November 6, 2024.

 

 

 

Choosing refinery buyer

2025, 01/16

General manager, Paria Fuel Trading Company, Mushtaq Mohammed, disclosed that final proposals from three short-listed bidders in the sale or lease of state-owned Petrotrin refinery are expected to be submitted on January 27 and meetings are planned with the evaluation committee for February 6 and 7 to review their final submissions.

Mohammed made the statements at the Public Accounts (Enterprises) Committee which entailed examination of the consolidated audited financial statements of Trinidad Petroleum Holdings Ltd (TPHL) for the year ended September 30, 2019, with specific reference to Heritage Petroleum Company Ltd and Paria Fuel Trading Company Ltd.

Last year, Finance Minister Colm Imbert noted that three companies were shortlisted from an initial pool of 10 bidders-

1. CRO Consortium, a local consortium comprising three companies-DR Commodities Ltd, Chemie-Tech and Ocala-
2. INCA Energy LLC, a company based in the USA; and
3. Oando PLC, a company based in Nigeria.

This is Government’s third attempt to sell or lease the refinery.

During discussions the status of outstanding consolidated audited financial statements for Trinidad Petroleum Holdings Ltd (TPHL) was brought to the fore. TPHL is vested with the responsibility of managing T&T’s oil and related assets.

Trinidad Petroleum has four subsidiaries –

1. Heritage Petroleum Company Ltd;
2. Paria Fuel Trading Company Ltd;
3. Guaracara Refinery Ltd and
4. Petroleum Company of T&T (Petrotrin).

Committee chairman Senator Wade Mark took TPHL to task for failure to provide consolidated audited financial statements since 2019.

He urged TPHL’s chairman Michael Quamina SC to state what was preventing the audited financial statements of Guaracara and Petrotrin from being submitted to the Ministry of Finance. All statements from the four entities must be submitted to formulate the entire consolidated financial statement for the TPHL.

Quamina replied that transitioning and restructuring of Petrotrin posed significant challenges for the auditing of the financial statements.

The committee was assured that all efforts were being made to complete statements in a timely manner.

 

 

 

 

Parisot-Potter questions Massy spending, Niquan write off

2025, 01/16

Former Massy Group general counsel and executive vice president, Angélique Parisot-Potter questioned the company’s corporate expenses, its handling of the write off of $175 million Niquan-related receivables and whether it was operating under an absentee-leadership model.

Parisot-Potter raised the questions at the annual general meeting of the group, which attracted hundreds of shareholders. At the group’s December 2023 meeting, Parisot-Potter questioned Massy’s relationship with an American executive training company and its spending of scarce foreign exchange.

At the AGM, Parisot-Potter questioned Massy’s corporate expenses, which she said more than doubled from $67 million in 2023 to $139 million in 2024.

“This begs the question, what severance payments were made to the former CEO (Gervase Warner). If none, what accounts for this additional $72 million?”

Massy’s deputy CEO, James Mc Letchie said the increased expenses included severance costs, “but for obvious reasons we cannot share the personal compensation of executives who have left.”

He included in the higher corporate expenses, spending on new capabilities such as the one-off investment costs in governance reforms, treasury management and cash flow management.

The return on those investments would be seen in the next few years. He explained that as soon as the group divested assets, the money was placed into a bank account to earn income.

“And the third bucket includes $70 or $80 million of a net interest swing. As we drew down on that fund to make acquisitions, the interest income went down…and our interest expenditure created an expense.”

Massy CEO David Affonso added that legal fees and expenses related to the closure of the Massy Learning Institute also contributed to the increase in the group’s corporate expenses.

Parisot-Potter questioned the board’s judgment and control in authorising unsecured credit to an energy company, allowing receivables to escalate to $175 million, only to write it all off. “What was the thinking behind this decision and what have been the consequences to those responsible for this almost $200 million loss?

Mc Letchie identified the energy company, referred to by Parisot-Potter, as Niquan.

In August 2023, the balance on Massy’s receivables was about $68 to $70 million. By September 2023, the group’s third-party contractors working on the Niquan plant “sent in all the invoices” relating to the job, because of the publicity surrounding the death of Allanlane Ramkissoon, the Massy Energy Engineered Solutions Ltd (MEES) employee in June 2023.

“Within a month coming up to Massy’s September 30, 2023 year end, we went from about $70 million to $177 million.

At that point, because we were speaking to bondholders, we anticipated that natural gas would be provided to Niquan, but we thought that it would be right to provide for some of it. So we took a $55 million provision in the 2023 year-end financials.

In January or February 2024, there was a change of circumstance and immediately we decided that the right thing to do was to provide for all of the $177 million.”

Parisot-Potter said Massy is operating under an absentee-leadership model, with previously eight out of 12 directors being based overseas. Now five of the nine directors are based overseas, including chairman Riley and Mc Letchie.

“Did this absentee model contribute to some of the decisions we have seen. Will it continue and what will be the impact to shareholders?” she asked.

Riley replied he did not believe that Massy has an absentee-leadership model.

 

 

 

OSHA role in rig incident

11 January 2025

The Occupational Safety and Health Agency said its role in the December 22 partial collapse of Well Services Ltd’s Rig 110, is to ascertain the root cause of the accident and seek any breaches of the Occupational Safety and Health Act.

At the time of the incident, 75 workers were on board the rig in Heritage Offshore East Field, off the southwest peninsula.

74 workers were evacuated. One worker was injured. Pete Phillip was reported missing. Efforts to find Phillip shifted from search-and-rescue to search-and-recovery since the incident happened.

On January 11, OSHA said it could not be part of the company’s emergency response team to the incident at Rig 110 and cannot approve retrieval plans after an accident.

The agency said it used its legal authority to restrict the use of the rig to protect workers and other personnel from harm while permitting “such activities associated with stabilisation of the rig, repairs, rescue and recovery.”

OSHA requested from Well Services, who enlisted the assistance of safety professionals and emergency personnel, “that the revised plan be provided to the Chief Inspector along with information on all the steps being taken, particularly involving the equipment, machinery or articles connected to the accident as part of its investigation.”

OSHA mandated “that all such activities be conducted safely, in accordance with the OSH Act.”

On January 9, Well Services said it remains fully committed to the ongoing search and recovery efforts for Phillip.

“In discussions with the family, we have communicated that we believe we have identified the location of Mr Pete Phillip.

However, to safely reach that location, it is imperative that the rig is first stabilised to mitigate any further risks.

While we are doing everything possible to expedite the process, each phase must be carried out with meticulous care and precision.

Our primary focus is the safety of the recovery team and all personnel on-site and we are committed to moving forward as swiftly as these critical procedures allow.”

Energy Minister Stuart Young was onsite at Trinmar Marine Base, Point Fortin on December 22, hours after the incident. He met relatives of Phillip and of other workers who were on the rig.

 

 

 

 

USA policy pivot

22 January 2025

The global energy transition drive was turned on its head, as one of its biggest contributors and advocates – the US, under new president Donald Trump – turned its back on its clean-energy policies.

The move is not new. In Trump’s last stint as president, 2017-2021, he also reversed the previous administration’s clean-energy plans. The news earned mixed responses from local environmentalists and entities, who said while it is still early days, the US president’s plans will have a regional and global effect.

Among dozens of executive orders Trump signed on January 20, one ordered that the US:

1. withdraw from the Paris climate agreement,
2. reverse electric-vehicle (EV) mandates,
3. ease regulations on oil and gas production, and,
4. n declaring a national energy emergency, called for oil producers to “drill, baby, drill” in Alaska.

These policies are a complete reversal from those of less than a year ago, when the Biden administration’s New Green Deal and EV mandates sought to reduce the US carbon footprint by close to 50 per cent.

The New Green Deal had benefits to the region, as it focused on not only reducing the US carbon footprint, but supporting other countries, especially small island developing states such as TT, in their transitions.

Last December, the US announced a US$3 billion pledge to the Green Climate Fund, the largest international fund for supporting developing countries tackling climate change but the announcement had been removed on the US government website.

“State.gov has been refreshed as of January 20 (the date Trump was inaugurated). If your search does not return to the content you expected, please check 2021-2025.state.gov for the former administration’s content.”

The announcement was on the website of the World Resources Institute, an organisation that helps countries protect, restore and stabilise the environment. It shared the announcement as news coming out of the COP28 climate conference in Dubai.

Environmentalist Wayne Kublalsingh saw no problem with the policies and plans of the new US president. Asked his thoughts on the effect of Trump’s new energy policies, he said they would make no difference.

“The Paris Agreement is a weak agreement. It has been watered down, because none of the participating countries could come up with a full resolution.

It was voluntary. Countries are not reprimanded, nor do they face any legal action if they do not adhere to the agreement, for which the US was notorious.

The US has been part of these protocols since the 70s or 80s, and they have never obeyed them.”

For the US, it is a good move economically, with US$36 trillion in debt, facing significant inflation challenges and with its military forces stretched by occupying other countries for its energy.

“Trump wants to do away with these line-in-the-sand wars, military engagements and regime-change wars, and he was very clear about that.

All of these countries have these demands and want to decapitate the leadership, so he is saying, ‘Let us withdraw from these countries and let us ‘Drill, baby, drill,’ meaning ‘drill our own oil.’

If (the US) can do this, then they can carry down inflation.”

This would make the country wealthier in terms of oil and gas reserves, which could reduce the price of fuel at the pump, one of the major factors in inflation for the US.

As for support and funding for the region and the world, if the US had continued its Biden-era energy transition plans, Kublalsingh wondered why the region was so heavily dependent on other countries in the first place.

1. 1. 1. He was particularly critical of the government, calling it a “climate criminal.”
      2. “Our governments have consistently refused to do anything about climate change.
      3. We consistently suffer from flooding and no government has built dams at the foot of the Northern Range.
      4. It has not really put any kind of engineering infrastructure to harness water.
      5. They have not established any infrastructure to deal with these tragedies.
      6. They decided to build a highway (the Solomon Hochoy expansion project) across the Oropouche Lagoon, to destroy the food basket.
      7. They decided to close down part of the St Augustine nursery.

Why are they asking for American money when they can’t fix their business? Funding will not help. We need real, concrete, economic, practical technical engineering solutions.”

Former chairman of the Environmental Management Authority Allan Bachan had a different view. He expressed disappointment at Trump’s withdrawals.

“The most powerful economy is walking away from the climate fight at possibly the worst time. This will probably not change the trajectory of climate-proofing globally, but it may slow it down.”

He pointed out the importance of major countries’ contribution to reversing the world’s climate trajectory.

“We need to understand that without the US contributing to climate finances, we will fall drastically short of funding for vulnerable small island states like TT to build our resilience to tackle the impacts.

…Our region will be among the first to see the calamitous effects. This will deepen global climate injustices.”

He noted the possible effects of drilling in Alaska, recalling the Exxon Valdez Oil Spill of 1989. When the tanker ran aground, the spill affected over 1,300 miles of shoreline and significantly affected fish and wildlife.

“The Alaskan region is one of the most biodiverse regions on the planet.

Drilling can damage the tundra ecosystem and threaten the habitats of wildlife like the endangered polar bears and birds. It can release carbon stored in Arctic soil, which can lead to volatile shifts in the already fragile global climate.

Fracking (recovering oil and gas from rock with pressurised water) can pollute ground and surface water.”

Professor Andy Knight at the University of Alberta and former director of Institute of Internal Relations at UWI St Augustine, said there will be deleterious effects from Trump’s announcements, particularly for the region, already vulnerable to the effects of climate change.

“One of the primary concerns is the immediate economic impact.

The region is heavily reliant on imported petroleum products, which makes them vulnerable to global energy-price volatility.

A withdrawal from clean energy initiatives will lead to continued dependence on fossil fuels, resulting in high electricity costs that could impede economic development and harm the competitiveness of tourism and other industries.”

Energy security was another concern given that the region, except for TT and Guyana, has limited energy resources. US withdrawal from these initiatives would lead to continued reliance on imported fuel.

“My sense is that US companies will be heavily involved in the oil resource extraction in both TT and Guyana. These companies will be emboldened by Trump’s concentration of these extractive industries which will lead to a diminishing of any effort on the part of Trinidad and Guyana to consider alternative forms of energy.”

Environmental impacts would be significant given fragile ecosystems such as coral reefs and mangroves which are vulnerable to climate change.

Continued reliance on fossil fuels will only serve to make the impacts to these ecosystems worse. The move would impact regional cooperation and development which has been progressing steadily over the years.

“A withdrawal from these efforts could undermine this progress and create new challenges for regional cooperation and development.

One hopes that with Mia Mottley leading Caricom, there can be some push back against what the Trump administration is attempting – which will only result in disastrous results for the entire globe.”

Denise Ferguson, executive manager of entrepreneurship, development and innovation at Cariri, said it was very possible that, with Trump withdrawing from green energy initiatives, a huge chunk of funding could go too. But this brings an opportunity.

“The US is a very big player. This means that the rest of the world – Europe, Asia, Africa, South and Central America and the Caribbean – need to be able to say how we are able to step in with the use of new technology, creating new initiatives that are quicker, cheaper and can be disseminated faster.

I think we are in a perfect place to bounce back. Are we going to hurt in the short term? Possibly, but in the long term, I don’t think so.”

Unipet CEO Dexter Riley said it is still early days since Trump’s executive orders and the world will have to wait to see how markets and other jurisdictions will react.   Despite Trump’s plans, the global fight against climate change will continue.

“He declared the US position, but there is a global commitment, including TT’s, to the Paris Accord and a number of agreements. What I anticipate is that there will still be a moving forward.

What we may see is that the US policies will affect the US in particular. This may even promote an acceleration in efforts against climate change in our region and other parts of the world. It could also put a drag, but it is still too early to call.”

There may still be players in the US market that will continue to support transition and other countries are contributing in several ways.

“There is a lot of innovation and technology coming out of China and in Europe and some in the US. Even investment in AI could be leveraged.”

In a January 21 daily UN press briefing by the office of the Secretary General, deputy spokesman Farhan Haq reiterated UN comments on Trump’s decisions, calling for countries and businesses to take advantage of opportunities to invest in renewables, which would power the rest of the 21st century.

“The Paris Agreement was adopted by all the world’s nations in 2015 because they recognise the immense harm that climate change is already causing and the enormous opportunity that climate action presents. The last ten years have been the hottest in recorded history. We have to look no further than Los Angeles to see this human, ecological and economic disaster play out.”

That city has been devastated by massive wildfires in the past few weeks, exacerbated by a severe drought.

“The collective efforts under the Paris Agreement have made a difference, but we need to go much further and faster together.”

 

 

 

TT progress on green path

Minister of Energy Stuart Young told the 2024 Energy Chamber Energy Conference that sustainability in the context of energy transition is, as for many other countries, a focus of TT.

“Nations are forging their own routes, tailoring their plans to match their own needs and available resources.”

The region relies on petroleum products for 87 per cent of its primary energy-consumption needs, resulting in spending up to 15 per cent of annual GDP on fuel imports.

Caricom states set a regional target of a 47 per cent renewable-energy contribution to total electricity generation by 2027. To do this, they must add four gigawatts of renewable energy to the energy grid, at a cost of US$9 billion.

TT focus includes increasing natural gas production, exploring the feasibility of hydrogen production for energy and projects such as Project Lara, the solar farm at Brechin Castle, as part of its transition plans.

TT is poised to be a leader in the transformative technology of green hydrogen as part of its energy transition. At COP26 in 2021, the Prime Minister acknowledged regional responsibility to transition to clean energy.

“We have embarked on ambitious plans to reduce emissions and build climate resilience but we will need help. TT is a small island developing state already experiencing the effects of climate change. Loss and damage are already clear in the aggressive erosion of our coastline and the bleaching of our coral reefs. Tackling loss and damage must remain a critical and core issue of any global climate-action framework.

“We are increasingly concerned about our ability to address this issue, given the well-known difficulty in accessing financing for such projects.

“We need funds like the Green Climate Fund to establish specific streams for loss and damage finance to ensure that this is prioritised in the same way as mitigation and adaptation. Further, there must be an equitable balance between public finance for mitigation and adaptation.”

 

 

 

Regional unity in the new Trump era

2025, 01/28

Over a week into his second term, United States president Donald Trump initiated actions likely to cause serious regional repercussions. The extent to which he views this region through the lenses of illegal immigration and crime and violence, is seen in the crackdown on undocumented migrants, triggered by the flurry of immigration-related executive orders he signed within hours of taking the oath of office.

Trump’s willingness to deport not only unauthorised immigrants but those with temporary legal status and some legal permanent residents who are beneficiaries of programmes such as Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS), will affect states that are ill-prepared to absorb large numbers of returning migrants.

It will also impact the flow of remittances that are a lifeline for many families, as the number of senders and the amount of money entering the region could be drastically reduced.

The main concern in T&T since Trump’s election victory last November has been the future of the Dragon gas deal. The two-year Office of Foreign Assets Control (OFAC) waiver granted by the US Treasury Department in December 2023 in the Biden administration for exploitation of the oil field could be revoked by the Trump regime.

Newly appointed Secretary of State Marco Rubio’s stance on the issue is well known. He accused the Biden administration of granting millions of dollars to Venezuela’s Nicolas Maduro regime through oil licences.

Dragon gas was expected to boost local oil and gas production on which the T&T economy is heavily dependent but which is now under threat.

An even bigger issue at stake is the gun violence that escalated into an urgent regional crisis. Easy access to firearms transformed Latin America and the Caribbean into the most violent region —the world average is 5.8 homicides per 100,000 people but the region has more than double the global average with 15 murders per 100,000.

Firearms trafficked mainly from the US are involved in almost 90 per cent of homicides in the region.

The situation, a threat to democracy and stability, led to a Caricom meeting in Port-of-Spain in April 2023 to address crime and violence as a public health issue. Regional leaders subsequently issued a declaration which, among other things, called on the US to join the region in its “war on guns.”

However, the new Trump administration is unlikely to give this critical issue the attention and cooperation it deserves.

There will also be repercussions from this second Trump administration’s decision to withdraw the US from the Paris Climate Accord. Small island developing states (SIDS) of the region, already experiencing the effect of climate change, now face an increased likelihood of displacement and migration as a result of environmental disasters.

With so many strong signals of policy directions from Trump and his Cabinet that might not be favourable to the region, leaders must urgently join forces to increase resilience to external political and economic shocks and prioritise policies that protect citizens’ welfare.

 

 

 

Trump cancels TT Defence Force training

‘America First’ policies cut disaster training $$ for T&T…

Ria Taitt Jan 28, 2025

United States President Donald Trump’s “America First” policies have begun to hit home. Sources confirmed that the Trinidad and Tobago Defence Force (TTDF), which benefits from training programmes with the US military, has been formally notified that the training for the TTDF in Civil-Military Coordination in Disaster Relief, which was due to start on January 25, 2025, has been cancelled. The training was to be under the aegis of the US Defence Security Cooperation Agency.

The cancellation followed an Executive Order last Friday placing an almost blanket suspension of all foreign aid, which extends to grant aided assistance programmes.

Sources said that while in Trinidad and Tobago the Defence Force was the largest beneficiary over the years, the T&T Police Service has also been the recipient of assistance under this programme.

TTDF was told, in correspondence, that the IMET (International Military Education and Training) courses with the Trinidad and Tobago Defence Force would be affected. Cancellations of IMET programmes were because of the Executive Order which placed a 90-day freeze on funding. This Executive mandated a “revaluation and realignment” of US foreign aid. This is the first local assistance programme for Trinidad and Tobago to be affected by Trump’s policies.

The US Security Assistance Programme provides training to selected foreign military and defence associated civil personnel on a grant basis. The training is provided at US military facilities and with US Armed Forces in the United States, and overseas, and through the use of Mobile Training Teams. The IMET programme is authorised by the US Foreign Assistance Act.

Trump’s Executive Order stated: “The United States foreign aid industry and bureaucracy are not aligned with American interests and in many cases [are] antithetical to American values….All department and agency heads with responsibility for United States foreign development assistance programmes shall immediately pause new obligations and disbursements of development assistance funds to foreign countries and implementing non-governmental organisations, international organisations, and contractors, pending reviews of such programmes for programmatic efficiency and consistency with United States foreign policy”.

Trump’s policy will affect all countries which have been beneficiaries of US grant-aided programmes. He also withdrew America from the World Health Organisation (WHO) and vowed to quit the universally adopted 2025 Paris Agreement, the legally-binding international treaty on climate change.

“America First” policy is a general proposition that United States foreign policy should champion core American interests and always put American and Americans citizens first. It means that global affairs and obligations are subordinate to America’s national interests and domestic policies.

 

 

 

 

T&T must look beyond the US

2025, 01/29

One week into his second term, US president Donald Trump is forcefully reminding the world that when America sneezes, it is most likely to catch a cold.

Added to the many controversial moves over the last eight days, Trump’s administration announced , through the Office of Management and Budget, a pause on loans and grants both locally and abroad. The aim was to give the administration an opportunity to determine what programmes align with US interests and what do not.

This is another layer of the Put America First doctrine, which Trump enforced in his 2017-2021 term, casting blanket global policies that affect all who are not agile enough to find quick solutions.

For now, though, enforcement of the policy is on hold, as a federal judge’s ruling temporarily blocked it. Trump, however, has been known to get his way more often than not. The question is what impact this latest policy will have on T&T if he succeeds, and whether it is capable of finding a substitute for the foreign aid and grants it is likely to lose if Trump believes it isn’t worth the US’ while to give to such countries.

The numerous grants and aid T&T gets from the US annually, amounting to millions, focus mostly on promoting education, security, economic development, health and humanitarian assistance and have existed for decades.

Last year alone, the US Embassy Educational and Cultural Exchange Programmes and Appropriation Overseas Grants offered T&T beneficiaries funding of up to US$3,000. Thousands of students benefit each year from scholarships offered by US-based institutions, some of which are funded by bilateral agreements between the two governments.

The US Embassy page, where requests for grant proposals are usually made, was void of all information regarding grants. Instead, a one-line message read:

“Please stay tuned to our website or social media accounts for funding opportunities.”

Although the position of the new administration is that the US has been giving more than it is receiving, it is important to understand why these grants are so helpful to countries.
Security partnerships are crucial in the fight against illicit drugs transhipped through the region destined for North America.

The funding given to T&T, therefore, serves two purposes; protecting T&T’s borders from narcotics that fuel gang and gun activity, while reducing the potential for large transshipments to be transported to the US.

The USAID programme also funds development initiatives in T&T in economic development, healthcare, education, and disaster response. Therefore, cuts to humanitarian assistance given as direct aid or support via international organisations such as the Red Cross, or NGOs operating in T&T, can impact citizens directly.

It is important, therefore, that as we plan for the rest of 2025, we consider the worst-case scenario while hoping for the best; that is the retention of all grants and funding given by the US to T&T.

In the meantime, we must take advantage of our prudent diplomacy over the years to engage other partners in Europe, Asia and the Commonwealth in win-win funding discussions, particularly in areas that would impact our social fabric the most. After all, when one door closes, another opens.