Senior Political Reporter
The exit of Methanex—the world’s largest producer and supplier of methanol—removes millions of dollars in potential methanol exports from Trinidad and Tobago’s economy, along with billions in foreign exchange earnings, while threatening jobs and investor confidence, former United National Congress (UNC) minister Vasant Bharath says.
“The hammer blow announcement that Methanex will indefinitely idle its Titan methanol plant should serve as a wake-up call rather than simply another unfortunate business decision. Whether the Government understands or accepts this fact will have significant implications for citizens, particularly since every large petrochemical plant supports an extensive ecosystem of businesses and employees,” Bharath said yesterday.
“The announcement represents far more than the closure of another industrial facility. It’s another stark indicator of the lack of a coherent economic plan and the structural decline facing Trinidad and Tobago’s energy-based manufacturing sector.”
Noting that Point Lisas was once regarded as one of the Caribbean’s premier industrial estates and a global success story in natural gas monetisation, Bharath said idle plants, declining production, reduced exports and shrinking industrial activity now create the perception of an industrial estate in contraction rather than expansion.
“Methanex’s exit raises serious questions about Trinidad and Tobago’s ability to retain major international investors. Titan, with an annual production capacity of 860,000 tonnes of methanol, joins the already idled Atlas plant, removing a combined 2.5 million tonnes of potential methanol exports from Trinidad and Tobago’s economy and more than US$1 billion in foreign exchange earnings.
“Overall, combined with the closure of Nutrien’s facilities and the continued idling of Atlas, it represents lost exports, reduced foreign exchange earnings, declining employment, weakened business activity and growing uncertainty for thousands of families,” he added.
Following Nutrien’s shutdown of its ammonia and urea operations, the cumulative impact extends beyond the energy sector, Bharath said.
“It strikes at the heart of Trinidad and Tobago’s foreign exchange-earning capacity, employment, investor confidence and long-term economic competitiveness. Every major petrochemical plant that closes removes a substantial source of foreign exchange at a time when businesses already complain of a chronic shortage of US currency.”
Citing the “vicious economic cycle” created by the foreign exchange shortage, with consumers ultimately paying higher prices, Bharath said Titan’s closure compounds an already fragile economic environment.
Expressing concern about jobs, Bharath said every large petrochemical plant supports an extensive ecosystem of businesses, from contractors and catering services to security firms, equipment suppliers and countless small and medium-sized enterprises.
He also expressed concern over the company’s statement that, despite “extensive discussions involving the Government and the National Gas Company, no commercially viable solution could be reached” and that Trinidad and Tobago’s “structurally tight gas supply and demand balances have rendered operations commercially unviable.”
Calling it “another painful milestone in the gradual erosion of Trinidad and Tobago’s industrial base,” Bharath added: “Point Lisas risks becoming a relic of mismanagement unless the structural issues surrounding natural gas supply, investment certainty and industrial competitiveness are addressed urgently.”
San Fernando East MP Brian Manning said Methanex’s decision to idle its Titan plant is a major blow to Trinidad and Tobago’s international reputation in the energy sector.
“This is a prominent production facility. The Titan methanol plant, owned by Methanex, has a production capacity of 860,000 tonnes per year, and methanol has historically been one of Trinidad and Tobago’s largest industrial activities.”
“It is obvious what the accumulated domino effects of this development will mean for Trinidad and Tobago’s economy, which is already struggling for air after this UNC Government took office, fired thousands of workers, continues to do so, put the economy into a chokehold and unleashed mismanagement left, right and centre. Who will be next to leave Trinidad and Tobago, idle plants or scale down operations, further affecting the people of these two islands?”
