AMCHAM CEO Hails Shell-Venezuela Gas Licence as a Breakthrough

American Chamber of Commerce of Trinidad and Tobago Chief Executive Officer Nirad Tewarie has welcomed the news that Trinidad and Tobago is set to receive 1.7 trillion cubic feet of natural gas from Venezuela's Loran field.

Tewarie warned that social and political division could undermine the country's ability to fully capitalize on the opportunity.

Speaking shortly after Energy Minister Roodal Moonilal announced in Parliament that the Bolivarian Republic of Venezuela had granted Shell a license to develop the offshore Loran field, Tewarie described the development as a major breakthrough for the country's energy sector.

However, he cautioned that national unity and cooperation would be essential if T&T is to realize the full economic benefits.

"Divisions in society. If there is too much division in our society, nothing that happens at the macro level is going to result in the kind of change and benefit that we want as a country," Tewarie said.

He added that national cohesion would be critical if T&T is to regain its position as a leading economic, social and political force within the Caribbean and the wider hemisphere.

Tewarie said the license approval represented a significant milestone after years of uncertainty surrounding cross-border gas projects.

"We're very excited. That's good news. It is the first step of a long process because the final investment decision by Shell still has to be made," he said.

"The fact that they got the agreement from Venezuela to allow the gas to cross the border is a huge step and we're very happy and excited. It bodes well for the future of the economy.

Tewarie noted that the benefits would not be immediate.

Based on timelines currently available, he said, if all goes well, increased gas production could begin within two-and-a-half to three years, although final schedules remain dependent on decisions by Shell and ongoing negotiations among stakeholders.

"We could start seeing an uptick in gas production in two and a half to three years and hopefully that will relieve some of the burden," he said.

"But we have to ensure that when we do see the uptick in gas production, we have the various components of the industry in Trinidad and Tobago to absorb and utilize the gas."

Tewarie said the period leading up to production would require close collaboration between the Government, energy companies and private sector organizations.

He acknowledged that the country continues to face significant economic challenges but said there were encouraging signs for the future.

"There are very real, promising signs of a prosperous economic future as long as we ensure there is transparency, there is effective rule of law, and we get crime and justice under control," he said.

The oil sector is expected to play a major role in Trinidad and Tobago's economic development for years to come, with the Government targeting a 1.5 million barrel per day production level by 2023.