Guyana looking for alternative to Trinidad amid oil supply fears

Jan 29, 2016 News

By Leonard Gildarie
Amidst concerns over the shakiness of its fuel supply, Guyana has started moves that will allow it to import oil from outside the region.
Yesterday, Minister of Public Infrastructure, David Patterson, disclosed that there

The new GEA Board with Ministers David Patterson and Annette Ferguson.

are concerns within CARICOM regions about the ability of PetroTrin, Trinidad’s oil company that supplies Guyana, to keep up its commitments.
Guyana has approached the business arm of CARICOM – the Ministerial Council for Trade and Economic Development (COTED), asking for waiver on the Common External Tariff, a tax that the region charges on goods that are imported. The waiver will allow Guyana to source fuel from any country outside the region.
The disclosures were made yesterday when Patterson met with the new Board of Directors for the Guyana Energy Authority, the body that regulates the importation and sale of oil in Guyana.
GEA’s Chief Executive Officer, Dr. Mahender Sharma, explained that issue of sourcing fuel outside CARICOM had to do with energy security – ensuring supplies locally are stable so as to prevent shortages.
Guyana had turned to Trinidad last year after the PetroCaribe deal with Venezuela fell through, leaving Guyana without a steady, ready supply.
According to Sharma, while the price from the Trinidad supplier was on the higher end, there is the very real fear of putting all Guyana’s eggs in one basket.
Guyana’s fuel supply is now just for two weeks, not an ideal situation. Should the Trinidad company go down for any reason, it would leave Guyana in trouble.
Guyana would be also looking for an alternative deal as world oil prices are at a decade low, trading at just US$30 per barrel, a third of what it was over a year ago. Guyana might very well get a better deal.
Yesterday, Minister Patterson urged the new board to look into other issues like the current issue over fuel markers and moving Guyana towards renewable energy like hydro, wind, solar, hybrids thermal and even waste energy.
Meanwhile, it was announced that Dr. Vincent Adams, a seasoned high-ranking official of the US Department of Energy, has accepted invitations to sit on the GEA’s board.  Dr. Adams is from Linden. He will be flying back to Guyana at his own expense for board meetings, Patterson said. His presence on the GEA board could open doors to Guyana’s thrust to build alternative power projects, the minister stressed.
The new GEA board comprises private sector executive, Lance Hinds – Chairman; with the members being Nadia Sagar; Mark Bender; Dr. Mahender Sharma and Dr. Vincent Adams.