Identifier
Created
Classification
Origin
06PORTOFSPAIN587
2006-05-10 19:10:00
UNCLASSIFIED
Embassy Port Of Spain
Cable title:  

TRINIDAD GASBAG - ENERGY SECTOR NEWS (#2-06)

Tags:  EPET EINV EIND TD 
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VZCZCXRO0362
PP RUEHDE RUEHGR
DE RUEHSP #0587/01 1301910
ZNR UUUUU ZZH
P 101910Z MAY 06
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC PRIORITY 6836
INFO RUEHHH/OPEC COLLECTIVE
RUCNCOM/EC CARICOM COLLECTIVE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000587 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EPET EINV EIND TD
SUBJECT: TRINIDAD GASBAG - ENERGY SECTOR NEWS (#2-06)


Following are recent developments in Trinidad's energy
sector, as gleaned from local media and other Embassy
sources. In this edition, we report on the following:

(1) U.S. company signs MOU for ethylene complex
(2) Petrotrin officials to visit Haiti
(3) FM Gift sees advantage in Bolivian problems
(4) New $1.5 billion methanol plant to make melamine
(5) More billion-dollar plants coming

------------------------------------------
UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000587

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EPET EINV EIND TD
SUBJECT: TRINIDAD GASBAG - ENERGY SECTOR NEWS (#2-06)


Following are recent developments in Trinidad's energy
sector, as gleaned from local media and other Embassy
sources. In this edition, we report on the following:

(1) U.S. company signs MOU for ethylene complex
(2) Petrotrin officials to visit Haiti
(3) FM Gift sees advantage in Bolivian problems
(4) New $1.5 billion methanol plant to make melamine
(5) More billion-dollar plants coming

--------------

1. U.S. company signs MOU for ethylene complex
--------------

Texas-based Westlake Chemical plans to build a US$1.5
billion ethylene plant in T&T. Westlake CEO Albert
Chao signed a memorandum of understanding with Energy
Minister Lenny Saith on April 18 for the plant, which
would use 37,500 barrels of ethane a day to produce
570,000 metric tons of ethylene a year. It will begin
producing ethylene in 2010, according to Saith, who
added that T&T has an option of acquiring 30 percent of
the plant. Pending approval from government
regulators, construction could begin in September 2007.
A company rep told Econ Chief in January that Westlake
is one of four companies that construct most of the
ethylene crackers in the industry, and that the MOU
would enable the company to undertake a full study of
the project before making a final decision early next
year.

--------------

2. Petrotrin officials to visit Haiti
--------------

A team of Petrotrin officials will visit Haiti
following inauguration of Rene Preval as president.
Foreign Minister Knowlson Gift announced on May 4 that
T&T has several bilateral agreements with Haiti that
include oil and natural gas. He said a team from
Petrotrin had been in Haiti last year to examine energy
needs, such as terminals and connections ("hookup") for
oil and gas. The planned visit anticipates a return of
Haiti to membership in CARICOM in July. He observed,
"The situation in Haiti has greatly stabilized."

--------------

3. FM Gift sees advantage in Bolivian problems
--------------

Foreign Minister Knowlson Gift said on May 4 that
Bolivia's recent nationalization of its natural gas
industry could be positive for the liquefied natural
gas (LNG) industry of T&T. Gift said at a weekly press
conference that the nationalization now causes long-
term problems for the "energy security" of the
hemisphere. Apparently noting global news reports that
the Bolivian government action might cause a crisis,
Gift said, "The disruption of Bolivia's natural gas
fields could put Trinidad and Tobago at an advantage."

-------------- --------------

4. New $1.5 billion methanol plant to make melamine
-------------- --------------

Energy Minister Lenny Saith turned over the first spade
of earth for a US$1.5 billion complex of Methanol
Holdings (Trinidad) Ltd. (MHTL) plants. According to
MHTL, the methanol plant in the complex is the fifth
for the company and will make it the second largest
methanol producer in the world. The new complex will
produce melamine and urea ammonium nitrate (UAN) for
the first time in T&T. There will be seven plants in
all: ammonia (1850 metric tons/day); urea (2076 mt/d);
nitric acid (1500 mt/d); ammonium nitrate (1905 mt/d);
urea ammonium nitrate mixing (4300 mt/d); and two 90-
ton/day melamine plants. The government foresees
melamine being the source of new plastics-based
industry in T&T in furniture and construction. MHTL is
a joint venture between CL Financial of T&T and several
German companies that operate as Consolidated Energy
Ltd.

--------------

5. More billion-dollar plants coming
--------------

Energy Minister Lenny Saith outlined plans for further
billion-dollar energy-based industrial plants during
the methanol complex groundbreaking event in the
preceding paragraph. In line with GOTT determination

PORT OF SP 00000587 002 OF 002


that future plants must include downstream components,
Saith said there would be an US$1.4 billion
polypropylene complex that will provide the raw
material base for manufacture in T&T of consumer
products. That project has not yet been awarded.
Meanwhile, Saith said the US$1.2 billion iron/steel
complex by Indian company Essar will produce steel
plates that can be used in new industries in T&T.

AUSTIN