GEISHA KOWLESSAR-ALONZO
geisha.kowlessar@guardian.co.tt
As an oil and gas-based economy T&T must not let the current geopolitically driven high price environment lull it into any false sense of security, advises chairman of the T&T Energy Chamber Dwight Mahabir.
Speaking at day one of the T&T Energy Conference held at the Hyatt Regency hotel yesterday ,Mahabir said while the push in Europe to find alternatives to Russian gas and oil has refocussed attention on fossil fuels, the longer-term climate imperative remains firmly in place and is driving long-term strategy.
Mahabir noted that just six months ago the imminent end of the fossil fuel era was a frequent topic of conversation.
And while there “now seems to be a more balanced view” Mahabir reiterated that this country must remain focused.
“With so much uncertainty it is sometimes difficult to chart a course forward or to take decisions about the direction of travel. But that is exactly what we must do,” Mahabir explained.
Noting that this year’s theme is “Leveraging the industry’s strengths for the energy transition” Mahabir said there are huge strengths in the Trinidad energy industry.
However, he noted, “We are sometimes guilty of not recognising and communicating all that we have achieved. It is not about patting ourselves on the back and being complacent – far from it – but it is about taking stock of our abilities and knowing that for a small island nation we are capable of big things.”
Additionally, Mahabir said at this year’s conference the country’s history was also recognized even as it looks forward.
“As we do so we need to recognise that the immediate imperative for Trinidad & Tobago is to secure additional natural gas supply,” Mahabir further explained.
This, he added, will allow T&T to preserve its world-class LNG and petrochemical sectors while creating space to diversify the economy and navigate the energy transition.
According to Mahabir, this is vital for all member companies of the Energy Chamber, from the smallest contractors through to the major multinationals.
Mahabir also cited the Chamber’s recently released six-point plan which he reiterated the need to fast-track bid rounds and the approval processes.
“The only way exploration and development is going to take place is if acreage is in the hands of competent and motivated companies. The deepwater bid round is closing on Thursday and I am sure we are all eagerly anticipating the outcome.
“ BHP and their partners have had exploration success in the northern area of the deepwater acreage, with 3,5 trillion cubic feet of natural gas resources announced,” Mahabir added.
He said the Chamber is also confident that this will be turned into successful development in due course, noting that the recent success of onshore exploration shows the continued potential even in a very mature basin.
And it is also expected that the upcoming onshore bid round will attract a lot of interest, Mahabir added.
But it is not just about putting more acreage out there:
According to Mahabir, it also means speeding up the regulatory approval processes to reduce the time between the award of new acreage and first gas production.
This, he said, will significantly improve project economics and make new gas available faster.
Mahabir also cited a study commissioned by the Energy Chamber in 2020 showed that a one-year reduction in the time taken to first gas could create US$ 120 million in additional net present value for a typical T&T medium-sized offshore gas field.
And safety also remained paramount for the industry as Mahabir recollected the tragedy which took the lives of Fyzal Kurban, Rishi Nagassar, Yusuf Henry and Kazim Ali Jr in February this year during an incident at Berth 6 in Pointe-a-Pierre, with a fifth person, Christopher Boodram, being badly injured.
“As an industry our commitment must be to ensure that a proper investigation is completed and that we learn the lessons to ensure that this never happens again,” Mahabir said.
