Dear Editor,
The news reported in the press of the delay of the gas to energy project due to the need for confirmation of its financial viability is yet another disappointment for the people of Guyana. Venezuela has already crafted a deal with Trinidad and Tobago to leverage TNT’s additional capacity to make use of Venezuela’s gas reserves. CRG had proposed using a similar strategy and also allowing for employment of our personnel so as to also learn the value added production processes for gas byproducts. Unfortunately, the current administration took the long route towards earnings, which both reduced profitability and added environmental, health and safety risks to Guyana and Guyanese.
What if the financial viability of the gas to energy project is found to be unviable? A $1Billion USD lost in sunk cost would be totally unacceptable, but throwing good money behind bad is even worse. Many others have also previously stated that the profitability of the gas to energy project is not only risky, but may end up being unviable. We are losing on quick gains from the sale of our gas and the low risk development of the fertilizer sector via Trinidad & Tobago. The funds from the sale of our gas could have also been used for the purchase of low cost oil from Russia, which India was able to capitalize on. We must not allow other nations, especially Venezuela, to make better business decisions than us and make better use of our Allies in CARICOM We come from a past with very scarce resources and we should use the lessons learned from the experience to maximize the use of our limited resources.
In addition, the risks associated with the pipelineS will increase as the lines lay waiting to be used for another year. Venezuela’s pipeline suffered from lack of maintenance during the embargo, which resulted in numerous leaks. Maintenance costs do not go away because of the project being on hold. Maintenance will still have to commence during this waiting period. During this period we should also continue to look for alternatives that will generate quick returns that are attractive and which allow us to continue our development trajectory. The current administration must reevaluate their make vs. buy philosophy to ensure that the decisions being made will maximize our financial gains with the minimum possible level of risk.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana
