Senior Reporter
jesse.ramdeo@cnc3.co.tt
Former prime minister and energy minister Stuart Young has questioned the Government’s silence on the specifics of what he described as a provisional Office of Foreign Assets Control (OFAC) licence by the US government to T&T.
“I urge the Government to inform the population what are the terms and conditions of this six-month licence,” Young said in a statement yesterday, hours after Attorney General John Jeremie announced that T&T had been granted the licence on Wednesday.
“Can Shell and NGC pay the Venezuelan government for the gas? This is the same UNC that, while in Opposition, demanded weekly updates on this project and accused us of secrecy. The irony is striking.”
In a Facebook post, Young said his People’s National Movement administration had kept the public informed throughout its own negotiations, noting that the previous licence was publicly published in the Venezuelan Gazette.
“The UNC once branded the Dragon arrangement a ‘secret deal.’ Now they are hiding behind confidentiality,” Young continued.
“The Government must tell the country what it promised to obtain this provisional OFAC licence.”
However, in an immediate response, Energy Minister Dr Roodal Moonilal hit back sharply at Young’s remarks, accusing the Opposition of hypocrisy and obstruction.
“We promised that the PNM and Stuart Young will be no part of the energy future,” Moonilal declared.
Moonilal said the UNC administration remains focused on restoring energy security and leveraging new diplomatic openings with both the US and Venezuela to revive gas supply to the domestic and LNG sectors.
“After significant and intensive work, we have attained an OFAC licence. We now have a clear and viable pathway to resuscitate the Dragon project, which was dead on our arrival. We’ve worked hard in a short time, and there’s still extensive work to be done,” he said.
Economists weigh in
Economist and international relations expert Dr Anthony Gonzales welcomed the development yesterday, describing it as a “logical and timely move” given the regional and economic pressures facing both Trinidad and Venezuela.
“It doesn’t make sense keeping that gas in the ground,” Dr Gonzales said in an interview.
“Countries are moving toward alternative energies like hydrogen, so Venezuela has every reason to monetise its gas now, and we have every reason to access it.”
He said the United States’ decision to grant the licence signals recognition of T&T’s dependence on natural gas to sustain its petrochemical and LNG industries.
“Our economy is very dependent on that gas. If we don’t secure new supplies soon, the Government could face declining revenues and rising unemployment,” Gonzales noted.
Gonzales also said Shell’s involvement and interest in securing a longer-term, ten-year licence could strengthen the project’s stability and attract broader investment.
But former minister in the Ministry of Finance and economist Mariano Browne struck a more cautious tone, urging the Government and the public to temper expectations.
He noted that the OFAC licence, limited to six months, was more symbolic than substantive given the scale and lifespan of the Dragon project.
“What is an OFAC licence for six months in the context of an agreement with Venezuela which lasts 30 years?” Browne asked.
“Nobody invests US$500 million to US$1 billion for a six-month period. These are capital-intensive projects that need 15 to 30 years to recover costs.”
He suggested that the short-term licence likely represents permission to negotiate rather than final approval to produce or invest.
“Both countries stand to benefit. Venezuela earns revenue, and we get the gas we desperately need. The quicker both sides sit down to negotiate, the better for everyone,” he said.
Browne said the real test will be whether the Government can reach an agreement that satisfies all parties, the US, Venezuela, Shell and NGC, within the limited window.
