CBTT Clarifies Gas Allocation Stance Amid Methanex Shutdown

The Central Bank of Trinidad and Tobago (CBTT) has clarified its stance on the country's natural gas allocation following recent comments by Energy Analyst Gregory McGuire.

McGuire had questioned public statements made by CBTT Governor Larry Howai, who assured that the closure of Methanex's Titan plant at the end of September would not lead to tighter rationing of Trinidad and Tobago's foreign exchange supply. Howai stated that gas sold to the methanol plant would be diverted to other companies.

However, McGuire argued in a commentary published in the Sunday Business Guardian that NGC already maximizes its 10% equity entitlement at Atlantic LNG, while major partners Shell and BP have little commercial incentive to process NGC's surplus gas over their own upstream supply. He warned that the sudden surplus shifts Point Lisas into a 'buyers' market,' giving remaining plant operators leverage to negotiate lower gas prices.

The CBTT clarified that its ongoing foreign exchange reserve projections rely on a diverse network of industry sources, including the Ministry of Energy and individual energy sector corporations. Upon learning of the Methanex shutdown, the bank contacted NGC to assess how the closure would reshape the nation's financial forecasts.