Overview of the Energy Industry
Key statistics from Trinidad and Tobago’s energy sector are shown below:
Source: Ministry of Energy and Energy Industries- Trinidad and Tobago
Benefits of investing in the Energy Industry of Trinidad and Tobago
- Highly developed oil, petrochemical and steel industries
- Access to developed and emerging markets through trade agreements
- Highly skilled and trained labor force
- Competitive energy costs
- Competitive raw material cost and availability
- Competitive fiscal incentives
- Excellent infrastructure and support services for heavy industries
- Developed support and secondary industries
- Advanced education and training facilities
- Excellent living standards and communities for foreign nationals and their families
- Access to a highly developed communications infrastructure
Target Sectors for Investment
The expansion in the utilization of our natural gas led to the creation of a diversified and sustainable petrochemical industry.
At present, Trinidad and Tobago is desirous of developing an inorganic chemical industry in an effort to further diversify the downstream energy sector. As such National Energy the arm of the Government responsible for the expanding the downstream energy sector is seeking to attract and work with interested Chinese companies wanting to develop an inorganic chemical producing facility in the island. National Energy has explored an integrated caustic soda complex but is not limited to caustic soda production and is open to investors who may be willing to establish other types of inorganic facilities in the country.
Raw materials from Trinidad and Tobago or the CARICOM region can be sourced for proposed projects.
For example, ammonia, methanol, limestone and natural gas are available in the country and region and can be source of raw material for an integrated complex.
Additionally, inorganic chemical projects would be afforded incentives as highlighted in the above “Trinidad and Tobago Taxation System and Financial Stability” section and benefit from the several advantages of locating facilities in Trinidad and Tobago.
For example, the economics of an integrated or standalone inorganic chemical plant would be enhanced by the low electricity costs in the island as electricity is one of the major cost elements in operating such a facility. Electricity in the country is both competitive and highly reliable and as such production costs in Trinidad should be lower than in both the United States and European countries. Trinidad and Tobago’s electricity cost at US$0.03/kWh is approximately half the average charge to industrial customers in the U.S for 2014 at US$0.73/kWh. (U.S Energy Information Administration 2014)
Proposed projects from interested parties are assessed, prior to being recommended for further development, according to set criteria that include a technology evaluation, market analyses, impact on the environment and economic viability.
Not with standing the thrust towards the inorganic chemical sub-sector, National Energy is pursuing the expansion of the Petrochemical Industry and the establishment of Renewable Energy Technology and Energy-Based Manufacturing industries.
Ammonia and Downstream
In 2014, Trinidad exported approximately 4.5 million metric tonnes of ammonia. National Energy is seeking investment for an ammonia and downstream complex utilizing natural gas to produce ammonia and derivatives such as urea, urea ammonium nitrate (UAN), Melamine and Diammonium Phosphate (DAP).
Methanol and Downstream
In 2014, Trinidad exported approximately 5.6 million metric tonnes of methanol. National Energy is desirous of developing the downstream opportunities from methanol such as:
- Acetic Acid
- Propylene Oxide
Other potential areas for investment include acrylates, acrylic acid and oxoalcohols.
National Energy is not limited to receiving proposals for projects only from the areas previously listed, but also welcomes investors to propose projects that can be of mutual benefit.
Renewable Energy Technology Manufacturing
Solar Module Manufacturing
We are also currently exploring the potential for photovoltaic (PV) module manufacturing in the country. We have already identified sites with ready access to ports for locating such projects and welcome investment in this new and sustainable industry to our shores.
Energy Based Manufacturing
National Energy has been focusing on developing linkages between the energy and manufacturing sectors in order to maximize on the full value of our resources. Currently, the downstream chemicals produced in Trinidad and Tobago from ammonia and methanol are urea ammonia nitrate (UAN) and melamine.
National Energy is pursuing the advancement of energy-based manufacturing industries from methanol and ammonia and for their derivatives to produce consumables such as but not limited to plasticizers, coatings, adhesives, laminates for pharmaceuticals.
For further information, please contact:
- Merlyn Rennie-Browne
Vice-President, Energy Industry Development (Ag.)
National Energy Corporation of Trinidad and Tobago
Corner Rivulet and Factory Roads
Brechin Castle Pt. Lisas, Couva
The Republic of Trinidad and Tobago. W.I
Other websites of interest: www.investt.co.tt