Government receives interim report on possible restart of oil refinery

Prime Minister Kamla Persad-Bissessar, centre, with Energy Minister Dr Roodal Moonilal, second from left front, Minister in the Ministry of Energy Ernesto Kesar, fourth from right, hold copies of an interim report on the feasibilty of re-opening the refinery. - Photo courtesy OPM

Cabinet is expected to consider the final report of the committee appointed to examine the restart of the refinery at Pointe-a-Pierre in early 2026.

On December 4, the committee headed by former energy minister Kevin Ramnarine presented an interim report to Prime Minister Kamla Persad-Bissessar and Energy Minister Dr Roodal Moonilal and other officals, according to a release from the Office of the Prime Minister.

The report found that despite its 2018 closure, the refinery's restart is technically, commercially and financially viable "given the current market demands for refined products and crude availability," a release from her office on December 5 said.

The Office of the Prime Minister (OPM) release said the final report is expected to reach Cabinet “very early in 2026."

The OPM release said the report was submitted four months after the committee began its work. The report outlined the technical, commercial, and financial considerations for restarting the refinery (formerly the Pointe-a-Pierre Refinery), which was closed in 2018.

According to the release, Persad-Bissessar has instructed the Ministry of Energy and Energy Industries to evaluate the interim report and propose restart options as the refinery remains a significant national asset with strong potential for economic and energy security gains.

The release said the committee met 11 times, where it reviewed historical operational and financial documents, consulted experts, developed economic models, and inspected refinery assets.

The assessment said there was deterioration across several units and utilities owing to the prolonged shutdown, but newer installations from the Gasoline Optimisation Programme were found to be in “relatively good condition.” The committee, however, emphasised that “time was of the essence,” as it warned that delays could lead to further degradation and render the project uneconomic.

The report recommended a four-phase restart plan, prioritising economic return, repair complexity, resource availability, and capital expenditure. It highlighted the uncommissioned Ultra Low Sulphur Diesel (ULSD) plant as a critical asset, citing regional and extra-regional demand for low-sulphur fuels.

Prime Minister Persad-Bissessar said that any restart must meet stringent health, safety, and environmental standards.

The committee also noted that in the year of closure, the refinery generated an operating profit before its revenues were redirected to service outstanding debt.

The government expects significant economic benefits should operations resume, including job creation, foreign exchange generation, and renewed opportunities for local contractors. The report argued that reactivation would strengthen TT’s position as a regional supplier of refined products and bolster energy-security resilience.

Responding to the announcement, former Energy Minister Stuart Young described the government's plans to restart the Guaracara Refinery as "smoke and mirrors."

Young noted that neither the Prime Minister nor her two energy ministers have said anything definitive on the refinery to date, and several critical questions need to be answered.

"They continue with a smoke-and-mirrors approach," the former minister told Newsday via WhatsApp.

"The questions that need answering are (1) what is the cost of restarting the refinery? It has been estimated at approximately US$1 billion. No one has done a proper asset integrity assessment and costing; (2) who is going to spend US$1 billion to restart an aged refinery?; and (3) where is the crude going to come from? You would have to buy with USD and import approximately 100,000 barrels of crude oil a day for the refinery. That means spending about US$6.3 million a day on crude purchases and importation. These are the real questions that need to be answered, not posing with people holding a document up for a photo opportunity.”

While a final determination is yet to be made on how the refinery would be restarted, Young warned that Paria Fuel Trading Company Ltd should not fall into the hands of private entities.

“The population must not accept any attempt by the UNC government to privatise via sale, lease or any other arrangement, Paria Fuel Trading Company Ltd under the disguise of a refinery restart, as this will jeopardise our country’s domestic fuel supply and also is certain to ensure that the refinery is not restarted. The bunkering assets of Paria are separate from the refinery and should not leave our control.”

Last month, former prime minister Dr Keith Rowley echoed a similar concern over the future of Paria.

"If Paria falls into private hands, the owners of the supply will determine the price you pay for fuel,” he said during a November 17 press conference.

He said this was a likely outcome unless the government could find a credible and sustainable oil supply to make the refinery commercially viable.

President General of the Joint Trade Union Movement Ancel Roget said the union intends to host a press conference on the report.