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Trinidad still banking on oil and gas

Trinidad still banking on oil and gas
Trinidad and Tobago’s Minister of Energy and Energy Industries, Stuart Young. (GP)

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PORT OF SPAIN – The Trinidad and Tobago Energy and Energy Industries Minister, Stuart Young, on Monday said he supports reports that despite the trend to renewables, there is agreement that oil and gas will continue to be important primary fuels for the coming decades.

“I believe this and I am an advocate for the continued and increased use of natural gas, as it is the cleanest fossil fuel. In 2020, fossil fuels represented approximately 79 per cent of primary energy consumption worldwide and by 2050, they are projected to represent approximately 65 per cent of primary energy under the GECF assumptions, but in a much larger market,” Young told the conference of the Geological Society of Trinidad and Tobago.

He said that the share of petroleum and other liquids in the primary energy mix is projected to decrease from 30 per cent in 2020 to 25 per cent by 2050.

“Natural gas demand is projected to increase by 46 per cent and its share in the energy mix from 23 per cent in 2020 to 27 per cent by 2050. The Asia Pacific region, almost doubling its current gas consumption, will make the largest contribution to this growth with more than 45 per cent of the additional global gas volumes through to 2050,” he added.

Young said that the power generation sector will also take a frontline place, accounting for 42 per cent of the total increase in gas demand.

“As a small island state and a hydrocarbon economy we recognize our responsibility to transition to a low carbon economy and, thankfully, decades ago we identified natural gas as the fuel of choice in achieving this objective.”

He said in this regard, The Trinidad and Tobago government is aligned with the policies of its major gas producers who consider natural gas production as the transition fuel in the movement to net zero carbon emissions.

“We have been, and intend to continue, working closely with our stakeholders whether in the upstream, midstream and downstream sectors toward the achievement of a low carbon economy. We are determined to keep Trinidad and Tobago competitive in the changing and evolving global energy sector.”

Young said that for the foreseeable future, Trinidad and Tobago’s economy will be dominated by oil and gas, adding “we are fortunate to have as partners energy majors BP, Shell, Woodside (formerly BHP), Repsol, EOG Resources, and the smaller outfits, like Perenco and Touchstone who have committed to tangible and sustained investment in the upstream.

“We also have new comer, De Novo who has proved itself as a stranded, and smaller field producer. As a government we will facilitate upstream investment with the appropriate policies to ensure that we maximise the recovery and monetisation of the country’s hydrocarbon resources, which are substantial.” (CMC)