‘Subdued’ outlook for Trinidad energy sector

Trinidad and Tobago’s energy sector is likely to remain subdued in the short term, according to the country’s central bank.

In a report, the monetary authority said the “sector continues to face constrained gas supplies and the natural decline in production rates at mature hydrocarbon-producing wells in the short to medium run.”

New projects, however, are expected to increase output, according to the bank.

The bank added that its energy commodity prices index – used to track pricing of the country’s main energy export products – slid 30% in the second half of last year compared with 2H22.

“Slower global growth and concerns about a prolonged high interest rate environment weakened energy demand expectations, leading to softer energy commodity prices in 2023,” it said.

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In its February oil market report, the International Energy Agency (IEA) highlighted that global oil demand growth is losing momentum and that the pace of expansion is projected to slow further.

Regarding gas, the IEA expects strong growth this year, driven by the industrial and power sectors in Asia, Africa and the Middle East.

Jerome Dookie, chair of the Energy Chamber of Trinidad and Tobago, said recently, that “attracting the volumes of capital we require has become more difficult over time.”

“Some of this is simply geological. As the basin matures there are less fields which are easy to develop and as we move on to smaller fields and into deeper waters, the economics become more difficult," he added.

Although the industry representative highlighted positive changes to the fiscal regime, Dookie called for greater action on this front.

Also read Trinidad planning new deepwater round, renewable energy calls

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