Trinidad Energy Chamber Urges Budget Boost for Oil and Gas Investment
The Energy Chamber of Trinidad and Tobago is urging the government to implement fiscal and policy measures in the upcoming 2027 national budget to boost investment in the oil and gas sector. The chamber warns that declining domestic production is straining government revenue, foreign exchange earnings, employment, and the broader economy. Crude oil production has plummeted from a peak of 220,000 barrels per day in 1977 to just 54,000 barrels per day in the first half of 2026. Similarly, natural gas production has dropped from 4.3 billion cubic feet per day in 2010 to an average of 2.4 billion cubic feet per day in May 2026.
The decline in upstream production has severely impacted the downstream petrochemical sector, leading to shutdowns or idling of plants operated by companies like Nutrien and Methanex. Nutrien recently announced an indefinite shutdown of its nitrogen operations at Point Lisas due to ongoing natural gas constraints. Proman Trinidad and Methanex have also scaled back operations, reducing export earnings and government tax receipts. The Energy Chamber acknowledges government efforts to secure additional gas supplies but emphasizes the need for clarity on the fiscal framework for imported gas to restore investor confidence.
The chamber highlights the broader economic impact, including job losses and the migration of skilled professionals to other energy jurisdictions. It recommends targeted support for workforce development, such as industry-led training and apprenticeships, to retain local talent. The chamber also suggests enhancing project economics, improving capital allowances, resolving outstanding VAT refunds, and reducing natural gas usage in electricity generation through energy efficiency measures and renewable energy. Other recommendations include improving the ease of doing business, particularly at the port, and providing clarity on the fiscal framework for importing natural gas.
The Energy Chamber states that production is expected to improve from 2028 but warns of real economic challenges in the intervening period. It invites the Ministry of Finance to consider measures now that strengthen the investment climate and support a steady pipeline of projects. The 2027 national budget is scheduled to be presented on October 12.