Cabinet green-lights SABIC negotiations

Cabinet yesterday agreed to give the Ministry of Energy the green light to start negotiations with a consortium of Saudi Arabian and Chinese companies on its proposal to construct two petrochemical complexes totalling US$5.3 billion, Energy Minister Kevin Ramnarine said yesterday. “Cabinet has authorised the Ministry of Energy, together with the National Gas Company and the National Energy Corporation to enter into negotiations and discussions with SABIC and Sinopec for the establishment of a methanol-to-petrochemicals and methanol-to-olefins complex in T&T,” Ramnarine told yesterday’s post-Cabinet news conference at the Diplomatic Centre in St Ann’s. The Ministry of Energy got the greenlight despite the letter written by US Ambassador to T&T, Beatrice Wilkinson-Welters complaining about the selection process. Ramnarine yesterday confirmed that the Government had received the official letter from the ambassador.

 

In response to questions on the issue during yesterday’s post-Cabinet news conference at the Diplomatic Centre in St Ann’s, Ramnarine said the letter was dated February 1, 2012. He said the permanent secretary in the minister responded to the US Ambassador’s letter. “We have replied to each one of the concerns raised by the US Ambassador,” Ramnarine added. Asked to comment on the specific concerns expressed by the US Ambassador, Ramnarine declined. He said later the process of selecting the successful bidders was conducted by an evaluation team “consisting of members of staff of the Ministry of Energy, the National Energy Corporation and the National Gas Company.” He said that team was made up of “some of the more reputable people in the industry.” He said each member had 20 years experience in these matters “so the team itself was a team of persons with great experience,” Ramnarine added.

 

He said a steering committee “oversaw what they did.” The committee was chaired by the Permanent Secretary in the Energy Ministry. “The process itself was conducted with a high degree of transparency, openness and we are very satisfied that it has thrown up a recommendation that the Cabinet has accepted,” Ramnarine said. He said the recommendation was not the approval of a project but an authorisation for the ministry to enter into negotiations with SABIC and SINOPEC, the Chinese state-owned oil company. Planning Minister Bhoendradatt Tewarie said if a country had a concern “it was legitimate and reasonable for the Ambassador to raise that issue but it is equally legitimate for a Government of the country, having followed due process and tried and tested procedures to satisfy the concerns raised by the Ambassador and then proceed with their business.”