Methanex Dispute Raises Questions About Gas Price Secrecy in Trinidad and Tobago
A dispute between the National Gas Company (NGC) and Methanex has brought attention to the secrecy surrounding natural gas prices in Trinidad and Tobago. NGC maintains that gas supply volumes were not the issue, but rather the price Methanex was requesting, which was significantly lower than what is contained in their expiring contract.
The NGC stated that agreeing to such a low price would not be consistent with their commercial obligations or responsibility to maximize value from the country's natural gas resources. They also argued that making public the terms of gas agreements would compromise their ability to negotiate and obtain competitive selling prices from downstream customers.
Energy consultant Gregory McGuire notes that the case for transparent gas prices is often based on evidence from large countries with different market structures, including multiple suppliers and thousands of customers. He suggests that discussions about making gas prices public should be accompanied by broader policy decisions regarding NGC's role in the T&T economy.