The Energy Chamber of Trinidad and Tobago welcomes the Government’s recognition in Budget 2027 that the energy sector "remains the main pillar of our economic strength" and the source of over 70 percent of the country’s foreign exchange earnings. We welcome the momentum on new gas supply, the Energy Accelerator Hub and the commitment to reform the VAT system. The Chamber shares the Government’s goal of re-igniting the sector. Higher production is the most sustainable source of revenue for the country, and achieving it requires clear policy and a competitive fiscal environment.
Upstream Outlook and Downstream Realities
The gas outlook is promising. Mento, Cypre and Angelin are producing, and new developments including Ginger, Mahogany A Extended, Juniper Phase II, Coconut, Aphrodite and Manatee could together add more than 1 bcf/d at peak. The Energy Accelerator Hub, which brings 33 approvals across eight agencies under one umbrella, was the first item in the Chamber’s six-point plan for gas and will help move projects to first production faster.
However, most of this gas arrives in late 2027 and 2028, leaving a gap of up to 18 months. Limited gas availability and uncompetitive prices are already reducing activity across Point Lisas, and the impact reaches well beyond the plants themselves. Lower plant utilisation means fewer maintenance, turnaround, engineering and logistics contracts for local energy service companies, and fewer jobs for the skilled workers they employ. Our engineers and technicians are in demand across the region and beyond, and once they leave they are hard to attract back. The Budget’s new technical and vocational programmes are a good start, but they should be matched by incentives for industry-led training and certification.
Cross-Border Resources and Industrial Expansion
Progress on cross-border and deepwater gas is encouraging. To build on it, the Government should set out the fiscal framework for importing natural gas, giving downstream users and investors the certainty they need. This certainty also matters for new industrial investment at Point Lisas, such as the planned restart of the steel plant, which depends on reliable, competitively priced gas and electricity.
Fiscal Policy, Taxation and VAT Refunds
Upstream capital spending is projected to peak at US$2.6 billion in 2028 before falling to US$1.4 billion in 2029, so now is the time to secure the next wave of investment. Instead, several new measures will raise costs for the sector: the increase in the Unemployment Levy on petroleum companies from 5 to 8 percent, the 75 percent limit on carried-forward losses, higher withholding taxes, and the disallowance of certain deductions. Higher taxes at a time of falling production make it harder to fund the projects that will raise output. We ask the Government to revisit the Unemployment Levy increase, carve petroleum operations out of the loss limit, and consult industry before these measures take effect in January 2027.
We support the decision to modernise the VAT system. Energy companies are major exporters, and outstanding refunds tie up cash that should be funding projects. We recommend a clear timetable to clear the $10.6 billion in outstanding refunds in fiscal 2027, the option to set refunds off against other taxes owed, and confirmation that exports remain zero-rated.
The Oil Sector and Refinery Restart
We note ExxonMobil’s swift action in the UD1 block and welcome the decision to restart the Pointe-a-Pierre refinery on a commercially viable and fully financed basis. A strong crude oil sector is essential to its success. Reform of the Supplemental Petroleum Tax (SPT), together with improved capital allowances, would unlock more onshore and offshore investment, and we urge the Government to set a timeline for these reforms.
Energy Efficiency and Renewables
We welcome the 5 cents per kWh surcharge on household electricity use above 3,000 kWh per billing period, which reflects our long-standing call for higher tariffs on high-use tiers. Every unit of gas burned for power is a unit that cannot be exported or used to produce ammonia, methanol or LNG. The next step is utility-scale renewables, energy efficiency programmes and a feed-in tariff for rooftop solar, financed in part by refocusing the $12 billion Green Fund.
Ease of Doing Business and Foreign Exchange
We commend the ASYCUDA and ASYHUB upgrades and the near-complete Point Lisas Customs Examination Station, which respond directly to our call for faster clearance of equipment and spares at the ports.
The energy sector provides about three-quarters of the country’s foreign exchange, and only higher output and exports can solve the supply shortage. Energy service companies can also earn FX by exporting to Guyana, Suriname and beyond, but they need reliable FX access for equipment. We urge EXIMBANK to create tailored products or a priority category for these companies, and we encourage greater local content in inspection, engineering and marine services to keep more FX at home.
The immediate challenge is to manage the impact of plant closures and retain the skilled workforce that the next phase of growth will depend on. New gas is coming, and the opportunity is real. To capture it, Trinidad and Tobago must remain globally competitive for investment. The Energy Chamber is committed to working with the Ministry of Finance and the Ministry of Energy and Energy Industries to make that happen.