State-owned Trinidadian energy company reaps big profits from Guyana, Suriname

Last Updated on Tuesday, 10 September 2024, 19:14 by Writer

Mr. Stuart Young

Trinidad and Tobago’s state-owned National Energy Company (NEC) has raked in profits ten times its expenses of setting up business in Guyana, that twin-island nation’s Energy Minister Stuart Young said Monday.

Responding to questions in the Senate, he said the company earned US$5.3 million (TT$36,262,827). He detailed that NEC earned TT$350,000 (US$51,564.) for technical services, and TT$35,912, 363 (US$5,291,298) for marine vessel services in the Guyana and Suriname basin .

“On behalf of the people of the citizens of Trinidad and Tobago, I congratulate National Energy for this outstanding revenue earned,” he said.

Mr Young said NEC spent TT$3,693,765 (US$544,311) from January 2017 to May 2024, as part of the company’s investment profile on efforts related to establishing business in Guyana.

The Trinidad and Tobago Energy Minister said the National Gas Company (NGC), NEC’s parent, had coordinated the submission for pre-qualification for Guyana’s gas-to-energy project. But, even after it’s shortlisting “declined to participate further” when there was a request for bid packages.

He added that the NEC was also contracted by a Guyanese company to provide technical assistance and jointly explore potential for partnership in port infrastructure, development and operation.

Further, he said the NEC has also entered into strategic partnerships for the provision of marine support services for operations in both Guyana and Suriname, and there are ongoing assessments and evaluations of business opportunities to determine feasibility for investment.

NGC with Suriname’s state oil company, Staatsolie, had worked on preparing a gas monetization study. Mr Young added that National Energy’s Guyana office is used as a base to engage senior officials with Guyana and Suriname. “This office demonstrates Trinidad and Tobago’s commitment to working with Guyana. It is also made available for use by other State companies and the Trinidad and Tobago High Commission in Guyana.

The Leaders of Guyana, Suriname, and Trinidad and Tobago had in 2022 laid the groundwork for further discussions on energy matters.

Cooperation between the twin-island nation and Guyana as well as Suriname includes food security, energy infrasructure and trade investment, assessment of regional gas supplies, renewable energy, clean petro-chemicals industry, knowledge exchange, and public-private partnerships.