GEISHA KOWLESSAR-ALONZO
Senior Reporter
geisha.kowlessar@guardian.co.tt
Central Bank Governor Larry Howai has dismissed concerns of an impending foreign exchange crunch following Methanex Corporation’s announcement on Tuesday that it will indefinitely idle its Titan methanol plant, revealing that a strategic diversion of natural gas will actually boost state revenues.
The decision by Canada-based Methanex to mothball the 860,000-tonne-per-annum capacity Titan plant on the Point Lisas Industrial Estate came after the global energy giant failed to secure a commercially viable, long-term natural gas supply contract with wholly state-owned National Gas Company (NGC) ahead of its third-quarter 2026 expiration.
The move follows the 2024 closure of Methanex’s larger Atlas facility, meaning both of the company’s local plants are now idled in a preserved state due to T&T’s structurally tight gas supply.
Speaking to Guardian Media on day two of AMCHAM T&T’s Annual Tech Hub Islands Summit (THIS.) conference at the Hyatt Regency yesterday, Howai was asked whether the loss of Methanex’s export earnings would force the Central Bank to increase its intervention schedule to defend the exchange rate, or would there be a tighter rationing of foreign exchange to commercial banks.
Howai dismissed concerns that the country would face tighter foreign exchange rationing or a major reduction in export earnings.
“There will not be a tighter rationing. In fact, while we lose from Methanex, the gas will be diverted to other companies, and therefore we will not see a loss of earnings. In fact, based on our investigation into the matter, the diversions of the gas will result in a ten per cent uplift in the earnings of the companies and the earnings of the NGC,” he said.
Howai explained the gas would be diverted to other energy companies, including downstream and midstream operators that are currently in a position to utilise additional volumes.
He argued that this reallocation could potentially generate greater returns than the earnings previously derived from Methanex’s operations.
“So that overall, we expect that this would result in perhaps even a slightly better outturn as far as foreign exchange is concerned in the short term. Let me just say that because these prices change all the time, but based on where we are now, we expect that with the diversion of that gas to the other companies, to the downstream, to the midstream, we don’t expect that there will be any significant loss of foreign exchange earnings to the country,” the governor further explained.
The comments come amid ongoing concerns about natural gas shortages and the effect that that has on T&T’s petrochemical and energy industries.
The shutdown of the Methanex Titan plant in October this year has raised questions about the country’s energy outlook and its ability to maintain foreign exchange inflows generated through energy exports.
In his address to conference attendees, Howai said the Central Bank is charting a transformative five-year path toward an inclusive, digital-first economy, prioritising a fundamental shift from reactive rule-making to proactive, “principle-based” regulation.
He outlined a sweeping suite of upcoming financial advancements, including the operationalisation of UPI-based instant payments, a regulated environment for virtual asset providers, and the full rollout of the Caricom Payments and Settlement System (CAPS). Additionally, a regulated stablecoin and an asset tokenisation pilot programme are slated to debut toward the latter half of the bank’s five-year strategic window.
Reflecting on the natural tension between fast-moving technology and traditional oversight, Howai argued that a modern regulator must adapt.
“In this dynamic world, a regulator that fears innovation is destined to fail,” Howai said.
He also advocated for a policy framework that actively “regulates to innovate,” positioning as a vital part of an ecosystem that actively incentivises innovation while relying on risk-based oversight across operational, cybersecurity and anti-money laundering (AML) vulnerabilities.
