Prime Minister Dr. Keith Rowley warns that the Dragon gas deal with Venezuela is vital for Trinidad and Tobago’s economy. He cautions that losing the OFAC license or access to gas could lead to economic difficulties. Rowley emphasizes the importance of public support for energy initiatives and warns about the dire consequences of resource depletion on government subsidies and public services.
Prime Minister Dr. Keith Rowley has issued a warning regarding the risks associated with the Dragon gas deal between Trinidad and Tobago and Venezuela. He expressed his confidence that current agreements are secure but highlighted potential consequences if the United States revokes the license for the deal or if Venezuela restricts gas access. Rowley made these remarks at the commemoration of the completion of the new Central Block of the Port of Spain General Hospital.
Rowley emphasized the critical need for revenue to sustain public services such as hospitals and schools. He dismissed claims of the Dragon gas project’s failure, urging the public to remain optimistic and support the initiative. He stressed that negative perceptions could impact national morale and economic stability, particularly since Trinidad and Tobago’s gas reserves are dwindling.
The Prime Minister pointed out the importance of securing a license to extract gas from Venezuela, achieved under challenging geopolitical conditions. He warned that sanctions could potentially threaten the economy and emphasized the need for strong leadership to navigate these challenges. Rowley highlighted that losing the Office of Foreign Assets Control (OFAC) license would have severe repercussions for the country.
He noted collaborative efforts between Trinidad and Tobago and Venezuela in gas extraction, citing Shell’s operations in the Manatee field as an example. Rowley cautioned against celebrating potential failures in the deal, signaling that such events would indicate economic difficulties ahead.
During his address, Rowley questioned the future of Trinidad and Tobago without viable energy projects, particularly regarding the revenue from the Point Lisas industrial estate. He recognized that the depletion of natural gas resources would pose significant challenges to the nation’s finances leading up to the eighth or ninth year. Approximately $6 billion of the national budget funds subsidies for citizens lacking alternative sources of income. This reliance on government support underscores the necessity for sustainable revenue streams, with potential IMF assistance carrying stipulations that may disrupt established subsidies.
Dr. Keith Rowley’s statements highlight the critical nature of the Dragon gas deal with Venezuela for Trinidad and Tobago’s economic stability. He warned against complacency in the face of challenges, reaffirming the importance of sustained energy revenue for critical public services. The future of the nation’s economy hinges on successful energy agreements, particularly as domestic gas reserves dwindle, requiring proactive governance and commitment to secure essential resources and maintain economic health.
Original Source: trinidadexpress.com
