Nutrien shutdown puts 1,600 jobs at risk

Aerial view of the Point Lisas Industrial Estate, Pt Lisas, Couva. -

More than 1,600 people may be at risk of losing their jobs in the wake of a controlled shutdown of Nutrien Trinidad, one of the leading global providers of crop inputs and services.

The shutdown would also be a blow to TT as Nutrien earns considerable foreign exchange via its export of ammonia and urea to customers primarily in North and South America, Europe, and Africa. The Point Lisas facility is a key production site for Nutrien's global fertiliser supply chain.

On October 21, Nutrien, which has operated at the Point Lisas industrial estate since 1998, announced that it will engage in a controlled shutdown of its operations effective October 23.

The downstream energy company said the shutdown was a result of limited port access and challenges with the supply of affordable natural gas.

In a statement on October 1, the National Energy Corporation (NEC) said companies operating in its ports and piers had arrears which exceeded $610 million.

Noting that the revenues were critical to the economy, NEC, a wholly-owned subsidiary of the National Gas Company (NGC), said formal notices were issued to users with significant arrears, warning that failure to clear balances would result in a suspension of access to facilities. NEC said companies in arrears were given 14 days to settle accounts.

In a memo to staff, Edmond Thompson, vice president and managing director, Nutrien, said the company has been in conversations with the NEC.

“(NEC) has asserted that Nutrien owes several million dollars in retroactive port service fees,” Thompson said. “We dispute NEC’s position and have been actively working to resolve the matter through constructive dialogue.

“Regrettably, NEC has now confirmed its intent to restrict Nutrien’s access to the port. With deep disappointment, this action leaves us with no choice but to begin a controlled temporary shutdown of operations effective October 23. The shutdown will remain in effect until we are able to re-establish an operating environment that is economically viable.”

Thompson said “as the company navigates the situation, it may become necessary to implement temporary workforce adjustments, including short-term layoffs.”

He said if the step becomes necessary, a small team to maintain essential services and safeguard company assets would be assembled.

Thompson assured that team members would be selected objectively, based on skills, experience and operational requirements.

The circular also advised that staff would notice additional security protocols in place at its facilities. It advised staff that if they felt overwhelmed, to access the Employee Assistance Programme, for confidential counselling and resources.

“Our Trinidad nitrogen complex plays an important role in the local economy, and our goal is to resolve this matter with NEC. We understand this news is unsettling, and I want to acknowledge the impact it has on our entire team. Please know that we are committed to keeping you informed and supporting you through this process,” he said.

Moonilal: Discussions with Nutrien ongoing

Responding to the development, Minister of Energy Roodal Moonilal blamed the former PNM administration for the recent development as he confirmed the government is currently in discussions with Nutrien.

The minister, in a statement, said Nutrien, along with other "downstreamers" and users of the port have been in discussions with the NEC over contractual arrangements for the use of the port and other related matters.

“The NEC, under the former administration of Mr Stuart Young at the Ministry of Energy and Energy Industries failed, in over four years, to negotiate new contractual arrangements with several of the downstream operators. This fell to us as we entered office,” he said.

“We are in ongoing discussions with Nutrien concerning port restrictions and port access and I expect that this matter will continue to occupy our attention.”

Young: Energy sector collapsing under UNC

In a social media post former energy minister Stuart Young described the shutdown as the first signs that the energy sector is collapsing under the UNC government.

"The new NGC and NEC boards are driving the Pt Lisas Estate into a crisis," he said. “This comes after they forced the president of NEC and executive officers of NGC out of office.”

"Citizens, the management of stakeholder relationships and the confidence of foreign investors in our energy sector is critical and should be carefully handled."

Young warned that government “incompetence” could further damage investment and revenue in the sector.

“Unfortunately, it is clear that the Prime Minister and her two Ministers of Energy are destroying our energy sector and this will affect investment and also our revenue. We should be very concerned about the level of incompetence that has been appointed to manage our energy sector.”

Chambers raise concern, urge collaboration

In a release on October 21, the American Chamber of Commerce (Amcham) urged continued collaboration among stakeholders.

“The factors cited – port access restrictions and the availability of reliable and economically viable natural gas supply – highlight the need for continued, constructive dialogue and co-ordinated action to address operational and infrastructural constraints that may affect production and investor confidence.”

The chamber said it was confident that all parties involved would work toward a mutually beneficial resolution that would support long-term business sustainability for all parties while preserving investor confidence, but it noted that maintaining a climate of predictability and partnership would be key for TT to realise its full potential.

“TT remains a market with significant potential for industrial and energy investment,” the chamber said.

The Energy Chamber of TT in its own release also acknowledged the development, describing the company as a "major investor and exporter of ammonia," whose "presence is vital to the strength of our downstream energy sector."

It said, "While we do not comment on commercial negotiations, this development underscores the importance of ensuring that TT remains an attractive, world-class destination for energy investment.

"We acknowledge that the government is working hard to address long-standing gas supply and infrastructure challenges, and we are encouraged by the progress in new upstream projects.

"The Energy Chamber stands ready to assist in any way possible to find a swift resolution that safeguards jobs, investment, and the future of Point Lisas."