Prime Minister Dr. Keith Rowley warns of potential fiscal calamities for Trinidad and Tobago if the Dragon gas deal with Venezuela fails. He stresses the importance of energy deals for the country’s revenue, urging public support amid opposition claims of project failure. Rowley highlights the significance of securing agreements under U.S. sanctions and discusses the long-term revenue implications should gas reserves deplete.
Prime Minister Dr. Keith Rowley has issued a warning regarding the potential ramifications for Trinidad and Tobago if the Dragon gas deal with Venezuela fails. He emphasized that while he holds confidence in the agreements in place, any cessation of access to Venezuelan gas, particularly if the United States revokes the licensing, could lead to a fiscal calamity for the nation.
Addressing attendees during the official commemoration of the Port of Spain General Hospital’s Central Block, Rowley underscored the essential role of revenue in maintaining public services such as hospitals and schools. He rebutted claims from an opposition member suggesting the failure of the Dragon gas project, encouraging public support rather than negativity about the initiative, which could prove beneficial given the country’s dwindling gas reserves.
Rowley cautioned that the nation takes for granted its energy deals, emphasizing the need for vigilance as some may celebrate the project’s potential failure. Additionally, he lauded the achievement of securing Venezuela’s agreement for gas extraction amidst a complex geopolitical landscape, noting the significant leadership required to navigate these challenges, especially under U.S. sanctions.
He articulated that losing the Office of Foreign Assets Control (OFAC) license or access to the Dragon field would be detrimental for Trinidad and Tobago. Presently, fields shared between the two nations, like the Manatee field, continue to provide gas extraction benefits.
The Prime Minister also raised concerns about the future revenue implications if gas reserves deplete, questioning the long-term sustainability of Trinidad and Tobago, particularly regarding the Point Lisas facility, which is a vital revenue stream. He warned of the challenges that insufficient gas supply would pose for fiscal responsibilities in the country.
Rowley highlighted that within a national budget of $60 billion, approximately $6 billion is allocated to assist individuals lacking alternative income sources. He illustrated how reliance on government subsidies for essential services could hinder progress if sustainable revenue streams are not established and acknowledged that while external funds like those from the IMF are available, they come with onerous conditions such as subsidy cuts.
In conclusion, Prime Minister Dr. Keith Rowley’s remarks serve as a crucial reminder of the inherent risks associated with the Dragon gas deal and the potential repercussions for Trinidad and Tobago. The need for a sustainable energy strategy and proactive leadership is paramount in averting fiscal challenges stemming from diminished gas supply. The government’s ability to secure favorable agreements during tumultuous geopolitical times is commendable, yet the reliance on external revenue sources remains a pressing concern that warrants careful management.
Original Source: trinidadexpress.com
