Trinidad and Tobago had been negotiating with labour union-owned startup Patriotic Energies and Technologies (PET) in the sale of 165,000 bpd Point-a-Pierre refinery. However, the plan has collapsed as the government rejected PET’s final proposal, citing failures to address key issues such as restart financing and purchase price financing. The negotiations started in 2019 when PET bid the century-old facility for $700 million, higher than those offered by German trader Klesch and US-based equity firm Beowulf Energy.
Energy Minister Franklin Khan said that due to the rejection, the government would consider bids submitted by Klesch and Beowulf. PET said that it was surprised by the government’s move, saying that its final proposal had been supported by its investors and global partners.
The loss-making Point-a-Pierre refinery was put idle in November 2018, but the government is keen to restart it with private capital. Since the shutdown, Trinidad and Tobago have been importing 25,000 bpd of refined products in the spot market to meet domestic requirements. When operational, the Point-a-Pierre refinery supplied gasoline, diesel, fuel oil, aviation fuel, kerosene, and LPG to the country and nearby islands. It has also been exporting its crude since the closure. Trinidad and Tobago’s crude production stood at 57,000 bpd in August, falling by 1.4% from July.
