The Energy Chamber of Trinidad & Tobago has long supported the privatization of the Guaracara/Pointe-a-Pierre refinery to put the asset to productive use. Significant capital investment is required to bring the refinery’s assets back into productive and profitable operation. This investment must be carefully deployed and managed, as it involves substantial risk. For this reason, the Energy Chamber has consistently maintained that no additional taxpayer funds from Trinidad & Tobago should be allocated to this investment; instead, the required capital should come from the private sector. Given the scale of the investment needed, the majority of this capital was always expected to originate from international sources, though the Energy Chamber has strongly supported and encouraged local private sector participation as well.
The Energy Chamber is pleased to learn that an investor has been identified to lease the refinery assets from Trinidad Petroleum Holdings Ltd (TPHL) with the objective of restarting refining operations. Reviving operations at the Guaracara refinery will generate new jobs, create business opportunities, and increase tax revenue for the government. Additionally, foreign direct investment in these assets will contribute to greater foreign currency circulation within the local economy. South Trinidad is home to many skilled workers and experienced contractors, who will play a crucial role in safely and efficiently restarting operations.
The Energy Chamber of Trinidad & Tobago is prepared to collaborate closely with Oando Trading to ensure the safe resumption of refinery operations, and we warmly welcome them to the Trinidad & Tobago energy industry. We are confident that this marks the beginning of a long and mutually beneficial relationship.
Note:
Before its closure, the Guaracara/ Pointe-a-Pierre refinery was a significant source of business for many members of the Energy Chamber, including smaller member companies. In an August 2018 survey of our 400 member companies, 59% of the 75 respondents reported having provided goods and/or services to the refinery over the preceding five years. At the time of its closure, 39% of them were actively engaged in supplying goods and/or services to the refinery. On average, these companies derived 25% of their business from refinery-related work, with four member companies indicating that the refinery was their sole customer. The total value of goods and services provided by these 75 companies to the refinery in the preceding year amounted to TTD 72 million.
