VZCZCXRO0362
PP RUEHDE RUEHGR
DE RUEHSP #0587/01 1301910
ZNR UUUUU ZZH
P 101910Z MAY 06
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC PRIORITY 6836
INFO RUEHHH/OPEC COLLECTIVE
RUCNCOM/EC CARICOM COLLECTIVE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000587 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EPET EINV EIND TD
SUBJECT: TRINIDAD GASBAG - ENERGY SECTOR NEWS (#2-06) 
 
 
Following are recent developments in Trinidad's energy 
sector, as gleaned from local media and other Embassy 
sources.  In this edition, we report on the following: 
 
(1) U.S. company signs MOU for ethylene complex 
(2) Petrotrin officials to visit Haiti 
(3) FM Gift sees advantage in Bolivian problems 
(4) New $1.5 billion methanol plant to make melamine 
(5) More billion-dollar plants coming 
 
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¶1. U.S. company signs MOU for ethylene complex 
------------------------------------------ 
 
Texas-based Westlake Chemical plans to build a US$1.5 
billion ethylene plant in T&T.  Westlake CEO Albert 
Chao signed a memorandum of understanding with Energy 
Minister Lenny Saith on April 18 for the plant, which 
would use 37,500 barrels of ethane a day to produce 
570,000 metric tons of ethylene a year.  It will begin 
producing ethylene in 2010, according to Saith, who 
added that T&T has an option of acquiring 30 percent of 
the plant.  Pending approval from government 
regulators, construction could begin in September 2007. 
A company rep told Econ Chief in January that Westlake 
is one of four companies that construct most of the 
ethylene crackers in the industry, and that the MOU 
would enable the company to undertake a full study of 
the project before making a final decision early next 
year. 
 
------------------------------------- 
¶2. Petrotrin officials to visit Haiti 
------------------------------------- 
 
A team of Petrotrin officials will visit Haiti 
following inauguration of Rene Preval as president. 
Foreign Minister Knowlson Gift announced on May 4 that 
T&T has several bilateral agreements with Haiti that 
include oil and natural gas.  He said a team from 
Petrotrin had been in Haiti last year to examine energy 
needs, such as terminals and connections ("hookup") for 
oil and gas.  The planned visit anticipates a return of 
Haiti to membership in CARICOM in July.  He observed, 
"The situation in Haiti has greatly stabilized." 
 
------------------------------------ 
¶3. FM Gift sees advantage in Bolivian problems 
------------------------------------ 
 
Foreign Minister Knowlson Gift said on May 4 that 
Bolivia's recent nationalization of its natural gas 
industry could be positive for the liquefied natural 
gas (LNG) industry of T&T.  Gift said at a weekly press 
conference that the nationalization now causes long- 
term problems for the "energy security" of the 
hemisphere.  Apparently noting global news reports that 
the Bolivian government action might cause a crisis, 
Gift said, "The disruption of Bolivia's natural gas 
fields could put Trinidad and Tobago at an advantage." 
 
--------------------------------------------- ------ 
¶4. New $1.5 billion methanol plant to make melamine 
--------------------------------------------- ------ 
 
Energy Minister Lenny Saith turned over the first spade 
of earth for a US$1.5 billion complex of Methanol 
Holdings (Trinidad) Ltd. (MHTL) plants.  According to 
MHTL, the methanol plant in the complex is the fifth 
for the company and will make it the second largest 
methanol producer in the world.  The new complex will 
produce melamine and urea ammonium nitrate (UAN) for 
the first time in T&T.  There will be seven plants in 
all:  ammonia (1850 metric tons/day); urea (2076 mt/d); 
nitric acid (1500 mt/d); ammonium nitrate (1905 mt/d); 
urea ammonium nitrate mixing (4300 mt/d); and two 90- 
ton/day melamine plants.  The government foresees 
melamine being the source of new plastics-based 
industry in T&T in furniture and construction.  MHTL is 
a joint venture between CL Financial of T&T and several 
German companies that operate as Consolidated Energy 
Ltd. 
 
--------------------------------------- 
¶5. More billion-dollar plants coming 
--------------------------------------- 
 
Energy Minister Lenny Saith outlined plans for further 
billion-dollar energy-based industrial plants during 
the methanol complex groundbreaking event in the 
preceding paragraph.  In line with GOTT determination 
 
PORT OF SP 00000587  002 OF 002 
 
 
that future plants must include downstream components, 
Saith said there would be an US$1.4 billion 
polypropylene complex that will provide the raw 
material base for manufacture in T&T of consumer 
products.  That project has not yet been awarded. 
Meanwhile, Saith said the US$1.2 billion iron/steel 
complex by Indian company Essar will produce steel 
plates that can be used in new industries in T&T. 
 
AUSTIN