More than seven years after the state-owned oil refinery at Pointe-à-Pierre was closed down, the facility still sits at the centre of a national debate. Steel, pipes, tanks, and jetties stretch along the Guaracara coastline, silent but not forgotten.
Energy expert Anthony Paul welcomes renewed discussions on restarting the Pointe-à-Pierre refinery, framing competition and process discipline as decisive factors if T&T is to extract real value from a dormant national asset.
Interest from international players, including Indian energy companies that were engaged by Minister of Energy Dr Roodal Moonilal during last month’s India Energy Week, reinforce a point Paul has advanced for years: refinery assets at Guaracara retain strategic value due to their location, configuration and embedded infrastructure. Market attention, he argues, undercuts claims that the refinery is inherently unviable.
“At this time, it is important to have competition in the marketplace so that the country gets the best deal,” Paul told Sunday Business Guardian. Expressions of interest, he added, validate assumptions about asset value rather than nostalgia for a closed chapter.
Reopening, however, is not a romantic exercise. It demands a clearly defined pathway from interest to investment decision, anchored by transparent selection criteria. Paul views the appropriate structure as non-negotiable. Without it, momentum dissipates and risk migrates to taxpayers.
“What is needed now is a plan to move it forward to select a partner and reopen the refinery,” Paul said.
That insistence on method reflects hard lessons from past failures. The refinery did not collapse because refining cannot work in Trinidad and Tobago. Paul pushes back against that narrative, pointing instead to financing missteps, out-of-control expenditure and governance weaknesses as drivers of losses.
“The losses were largely tied to financing arrangements, poorly managed projects, and cost overruns,” he explained. Refining, he noted, may not always deliver outsized margins, yet it remains capable of generating profits while serving a wider strategic purpose.
Beyond balance sheets, Paul stressed that a domestic refinery anchors fuel security. It buffers shocks, supports regional supply and reduces exposure to volatile import markets. For a small open economy, that insurance still carries weight.
At the same time, uncertainty is already creeping into the process. One of the previous bidders and interested parties has expressed concern over the Government’s failure to clarify whether the previous refinery restart process has been formally discontinued and whether a new process is now being instituted. That uncertainty is compounded by indications from Moonilal that the Office of Procurement Regulation objected to the methodology used in the previous process, which resulted in the selection of the Nigerian energy company, Oando as the preferred bidder.
Further questions have been raised following references to the Indian Oil Corporation. On the face of publicly available information, IOC has not historically been involved in refinery ownership or restart projects outside India. While there is some optimism that discussions signal forward movement, timing has become critical. Any further delay, according to industry sources, would materially undermine feasibility and investor confidence.
Politics, prudence, and price tags
Energy Minister Dr Roodal Moonilal has placed the refinery restart at the centre of the Government’s international energy strategy, with discussions underway with Indian energy companies. The refinery featured prominently during his engagements at India Energy Week, held January 27–30, as part of broader efforts to attract foreign investment across deep and ultra-deepwater blocks and onshore resources.
Moonilal confirmed that representatives from Indian Oil Corporation are expected to visit Trinidad and Tobago after Carnival to provide technical advice on restarting operations. An agreement in principle emerged during India Energy Week in Goa, where refining prospects dominated several bilateral conversations, he said.
Apart from long-standing partners BP and Shell, the T&T delegation met multiple international companies, including IOC. Moonilal described IOC as India’s largest state-owned integrated energy company, operating across the hydrocarbon value chain with 10 refineries.
“They have a wealth of experience in refinery capacity at various refineries across Asia. Our delegation indicated that there is a readily available local workforce to support resumption of refining operations,” Moonilal said.
Former energy minister Stuart Young, however, injects caution into the debate. He has outlined what he describes as non-negotiable requirements before any restart proceeds. Chief among them is a comprehensive asset integrity report to establish the true cost of recommissioning, which he estimates between US$500 million and US$1 billion.
That figure matters. Who pays, under what terms, and with which risk allocations will shape any credible deal, Young said, as he flagged the availability of a supply of crude as an important issue. Refinery economics hinge on consistent feedstock priced at commercially viable levels. Without supply certainty, even refurbished units struggle.
Young has warned against leasing or selling Paria Fuel Trading Company and associated assets, arguing they remain critical to maintaining domestic fuel supply at affordable prices. Protecting downstream infrastructure, he maintains, is part of the national interest calculus.
Economist and strategy consultant Gregory McGuire situates restart within T&T’s political reality. The Government has designated refinery reopening as a central electoral commitment. Expect urgency, he said. Yet urgency does not compress physics, engineering or finance.
With the identification of interested parties, Mc Guire notes, practical questions crowd in. Timeline to operations tops the list. Investors must complete technical and commercial due diligence to test returns against risk thresholds. Aging infrastructure, environmental compliance, and market volatility complicate assessments.
Current projections place capital outlays of up to US$1 billion. At that scale, investors will seek guarantees on crude supply, market access and long-term tax stability. Negotiating those assurances rarely moves quickly. McGuire estimates the final investment decision is at least nine months away, even under optimistic assumptions.
With Oando waiting in the wings, the current administration has restarted the selection process to re-evaluate options. No information has been released on the role, if any, of Patriotic Energies and Technologies Company, identified as preferred bidder during 2019 process, which was established by the Oilfields Workers Trade Union.
McGuire said the refinery represents a major state-owned asset, valued above US$700 million, with a nameplate capacity of 165,000 barrels per day. Disposal or leasing triggers the Public Procurement and Disposal of Public Property Act requirements. The methodology now adopted contrasts with that of predecessor, raising questions about statutory compliance and process transparency.
Paul’s position aligns with that concern. Competition without clarity creates confusion. Structure without competition limits value. The balance between both will determine the outcome.
Jobs, supply, and strategic leverage
From business community perspective, Angie Jairam, Chief Strategic Officer of Confederation of Regional Business Chambers, views possible reopening as extending beyond energy sector. Closure in November 2018 hollowed out economic activity across South and Central Trinidad. Contractors folded, households adjusted, and confidence slipped, Jairam said, making it plain that she sees the refinery as a catalyst for recovery. Restart could stimulate business activity, support employment, and create opportunities for small and medium enterprises. Foreign exchange inflows and confidence effects matter as much as payroll.
Moonilal’s outreach suggests the government recognises the stakes. Engagements at India Energy Week placed refining alongside upstream investment, signalling an integrated approach. IOC’s expected visit after Carnival marks a shift from rhetoric to technical evaluation.
Young’s warnings cut through enthusiasm. No hard data on asset condition leaves numbers as guesswork. No firm crude supply traps any operator in thin margins. Lose control of Paria assets, and domestic fuel security weakens quickly. In that gap between ambition and execution, risk grows.
