No guarantees on major energy projects Nadaleen Singh Published: Tuesday, January 27, 2015 BHP Billiton’s Pereira: There are no guarantees major projects in the energy sector will continue given fluctuating oil prices, Vincent Pereira, chairman of the Energy Chamber and president of BHP Billiton T&T said yesterday. He told delegates at the T&T Energy Conference 2015, which opened yesterday at the Hyatt Regency in Port-of-Spain, that the external environment in which energy companies operate was challenging. He said major global oil and gas companies were cutting their capital investment budgets and cancelling major projects. “So far, the major projects in T&T have not been impacted but with expenditure constantly under review there is no guarantee that this will remain the case,” Pereira said. “While we have seen high level of investment over the last couple of years, it is vital for our economy that we see these levels being sustained each and every year over the long term. Only sustained investment in upstream gas delivery every year, will allow us to deliver the 4 billion cubic feet of gas per day that is required to keep Atlantic and Point Lisas operating at capacity.” Pereira said investments were also required to increase oil production in a sustainable manner. Referring to regulation of the sector, he said there was need for awareness of how “inefficiency in the regulatory environment can have a negative effect on T&T’s competitiveness, the ways in which regulatory approvals add cost to projects and in the long-run mean lower returns to companies, the Government and to the people of T&T.” He said gas shortages had “undeniably been a major strain on the industry, negatively affecting company profitability and hence government revenue, having negative implication for reputation and asset integrity. “Total gas production in 2014, was down six per cent on 2010, which was the peak year for production. Of course during that time, ammonia and methanol were all receiving relatively good prices.” Pereira called for the gas master plan to be implemented and said he was pleased Government recognised energy services as one of the key sectors for diversification of T&T’s economy. Business Source:: Trinidad Guardian The post No guarantees on major energy projects appeared first on Trinidad & Tobago Online. #trinidad
Posted on: Tue, 27 Jan 2015 05:31:44 +0000
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