Motilal said if an investor has to set up shop in T&T, the country has to be able to generate competitive business because that investor's real market is outside. He explained that T&T is a small market, which does not constitute a domestic market for goods that would be produced. Consequently, in order for T&T to compete with other producers from other jurisdictions that have better pricing structures, it has to quickly readjust its pricing structures.
Limited supply
Derek Hudson, president and asset general manger of BG T&T, also expressed the concern about insufficient supply of natural gas. He said in a rapidly changing environment, T&T has the challenge of maintaining a certain level of consumption. T&T, Hudson said, produces 4.1 billion cubic feet per day.
With this rate of consumption, he explained, and despite potential reserves, it would require eight to ten trillion cubic feet of gas to maintain that consumption. Therefore, it was very clear that T&T has a supply challenge and it should be taken into consideration before it looks at downstream projects, Hudson said. He expressed the concern of supply impacting the cost of development. Hudson said that T&T is in an environment that will create many challenges for the sector.
Solutions
Motilal recommended that all aspects of the chain must be examined.
"To arrive at a pricing structure at the end of the chain, you would have to consider the upstreamers that are producing, the NGC in the middle and the downstreamers. "We have to ensure that we look at all those chains. Each party along the chain has to make the adjustment, the rewards should commensurate to the kind of value and activity each party is bringing to the table," Motilal said. He said that somewhere along that line, T&T has to end up with a situation where the sector can support new investments. These new investments, Motilal said, is what is required for the country to grow the business, grow the economy and create new jobs. "Natural gas is still our primary raw material that our country possesses, even though we have the oil industry and other things."
Collaboration the key
Gervase Warner, chief executive officer, Neal & Massy Group, which includes the Neal & Massy Wood Group, said collaboration is the key. The group includes the Neal & Massy Wood Group, which provides a combination of complementary skills and services focused entirely on T&T's oil and gas, petrochemical and power industries. He said stakeholders must come together and map things out instead of engaging in different conversations. Warner said he welcomed the idea of going downstream as it would bring more value. Warner stated that while it was very encouraging to hear that new wells are being created and there is a sense of some things to come, there is also a need to move away from just promises and make it happen.