Petrotrin refinery shut down

[wingnut]

they say the refinery isnt viable because its minium capacity is way above the needs of even the local market, that they had to import raw material to have it running. i say scrap the crude processing parts, and build more methanol, AUM, DME or what ever kinda of materials in demand right now, and in the future.
if possible, to process local stuff to supply the local markets at present consumption, but with room to increase production to about twice what we need. the minium capacity should be higher than what is needed, cause u cater for down time. u plan ur shut down every time storage becomes maxed out... do ur repairs, then back up again when storage become available.


all in all, i am totally against selling the natural gas away from trinidad in the form of LNG.. we should process it, convert it into sumthing and sell that product.

Exactly, even when they import the shortfall to keep it running in the end its still being produced at a loss, then the products produced aren't to international standards so no developed country would want that sewage and we can't even consume that amount of excess locally.

No business can be sustainable with those economics. Only reason it survived this long was gortt was pumping tax payers money into that black hole, evident by the billions currently being owed. If was private company it would have already closed.

Alternatively, upgrading the refinery would have been feasible, but we all know where that would have ended up with govtt, petrotrin's management track record and hundreds of millions soon to be billion of dollars of cost overruns in the mix, just like their office and ULSD.....destined for failure, all while the world is moving away from fossil fuels

I think the gov't made the right choice, given the circumstances.

Maybe we can look into building a hydrogen plant, seems like one of the emerging alternative fuels being developed

[neilsingh100]

Board member Anthony Chan Tack said the refinery was unreliable and likened it to a taxi that was “more in the garage than on the road."

Based on this statement and the negative refining margins seems like the decision to close the refinery is a good business decision.

Source: http://www.guardian.co.tt/news/2018-08- ... r%E2%80%99

[sMASH]

Hema grilling seepersad bachan fierce fierce this morning on Petrotrin.

I half expected she and hinds to be dancing whole morning,,,
Like hinds couldn't wake up, so she settle for demonizing the non PNM party

[lalloboy101]

Problem with the ULSD project is that even if they spend another 1.5b on it , it still may not work. Reason being the site used was too small so they had to compact the process and in so doing left out vital components. This was a management decisions btw and not the workers. The project even started with them knowing the fate of the company. They thought this would have forced them to continue.

[aaron17]

Can Petrotrin be converted to a Hydrogen plant?

[Allergic2BunnyEars]

Can Petrotrin be converted to a Hydrogen plant?

Petrotrin refinery already has a functioning hydrogen plant.

[Joshie23]

Board member Anthony Chan Tack said the refinery was unreliable and likened it to a taxi that was “more in the garage than on the road."

Based on this statement and the negative refining margins seems like the decision to close the refinery is a good business decision.

Source: http://www.guardian.co.tt/news/2018-08- ... r%E2%80%99

I'm not sure if you're aware, but Chan Tack was the Vice President of Refining and Marketing in Petrotrin, a few years ago. As brilliant as he may be, what was his contribution to keeping the 'taxi' on the road more than it was in the garage, during his tenure as VP? Alright fine, we knocked the Union for not flexing their muscle to force Management's hand in implementing, repairing, etc., but here we have a man who was the head honcho of the very arm that is now deemed obsolete. What muscle did he flex? And now, he's part of a team that says the business model is no longer sustainable. Laughable yes.

[Dizzy28]

^Its also pretty easy for men like Espinet to end jobs.

When Cemex bought out TCL, Espinet as Chairman had shareholdings which would have netted him $40m in the share buyout.

Who is alluh little plebs to bother his life??

[aaron17]

Can Petrotrin be converted to a Hydrogen plant?

Petrotrin refinery already has a functioning hydrogen plant.

Since the future is hydrogen, can they use that?

[Allergic2BunnyEars]

Can Petrotrin be converted to a Hydrogen plant?

Petrotrin refinery already has a functioning hydrogen plant.

Since the future is hydrogen, can they use that?

What are you talking about in terms of the future being hydrogen?

[aaron17]

hydrogen vehicles

[Allergic2BunnyEars]

hydrogen vehicles

How many vehicles locally do you see using hydrogen right now and projecting to three years into the future?

[aaron17]

I was thinking of exporting..but I guess its better to shutdown everything in the first place.

[Allergic2BunnyEars]

I was thinking of exporting..but I guess its better to shutdown everything in the first place.

Look into hydrogen exporting. I don’t think anyone does that. Not even sure if it’s feasible.

[K_J_R]

Capture.PNG

Several questions as a non energy lay person
1. This is a bit confusing. Importing 100,000 BOPD to supplement the 40,000BOPD being produced is a drain on forex. But to import 25,000BOPD of refined products would also utilize Forex and I am assuming refined products are more expensive than crude (YES. importing gasolene "ex. refinery" to us will cost more.). Is it the arbitrage is significantly less? ((NO)

2. Do we not export all the refined products not used locally anyhows earning forex? (YES. refinery also had arrangements to process crude from other countries for a fee or a profit e.g. bnoc)

3. We are going to only sell lower value crude to someone else to refine taking our self out of the value chain? (YES)

One of the items on the agenda of Theresa May's visit to Nigeria soon is the find a way to correct the imbalance of the UK importing Crude as their #1 import from Nigeria whilst the #1 export to Nigeria is refined products.

hydrogen vehicles

How many vehicles locally do you see using hydrogen right now and projecting to three years into the future?

i don't believe H2 plt's output purity meets automotive requirements. ccr exports higher purity h2 iirc but that needs unrefined naphtha to run.

they wont be buying unrefined products so i cant see how these plants will run.

[Redman]

Board member Anthony Chan Tack said the refinery was unreliable and likened it to a taxi that was “more in the garage than on the road."

Based on this statement and the negative refining margins seems like the decision to close the refinery is a good business decision.

Source: http://www.guardian.co.tt/news/2018-08- ... r%E2%80%99

1)Minister of Energy says the refinery loses $3 per BOPD.

Also see August 10 2014 of President of Petrotrin
http://www.guardian.co.tt/business/2014 ... ussian-oil

Responding to questions on Wednesday, Hassanali said that Petrotrin had spent US$1.3 billion importing crude oil between January and July.

7 months -210 days.
$1.3B over 210 days is 6.19 M USD per day spent importing oil in the first 7 months of 2014

Information on the Ministry of Energy’s Web site (consolidated monthly bulletins of June 2014) indicates that Russia supplied Petrotrin with 1,440,812 barrels of crude oil between January and June, 2014, representing about 15.1 per cent of total imports for the six-month period, which amounted to 9,485,466 barrels. .

Jan to June 2014 we imported 9,485,466 BBls of oil.

180 Days or an average of 52,967 BOPD imported.

Hassanali says we spent 6.19 M USD per day importing Oil First 7 months
MOE says we imported 52,967 BOPD.
That gives a price per BBl of 113 USD.

WTI between Jan2 to July 31 2014 had an average cost of 101.

So Petrotrin was paying 13% more than the average reference price for oil.

Which is questionable at best.

When you add into the mix that the grades of oil we import are all lower priced than WTI-based on their quality/API/Sulphur content that 13% will creep up.

The refinery cannot work if they are importing oil in this manner.

The refinery will be restarted-and the quality staff rehired....and they will increase local production
Many of the workers will get very nice packages.
Some will be rehired.
Some will not.
Most will be cool when it settles.

will things change???

[wickedtuna]

So um who bringing in the gas ...diesel and other products ....and could the vene deal b part of this ...(wishing a coulda buy ah boat )

[amd-dude]

Soooo, this means we could finally get some good clean farin diesel?

[ru$$ell]

^
Been running black diesel on a IDI engine a while now #unaffected

[sMASH]

So um who bringing in the gas ...diesel and other products ....and could the vene deal b part of this ...(wishing a coulda buy ah boat )

Load up a semi bulk on a pirogue, give the 1% a Lil competition.

[sMASH]

Soooo, this means we could finally get some good clean farin diesel?

One can hope

[toyolink]

The discussion thus far mirrors the confusion, disappointment, fear, anger, and distrust being felt by citizens at this time.
I have always held firm the belief that when publicly owned going concerns/businesses hit these lows and urgent transformation is required, all stakeholders must be seriously taken onboard.
Yes, trying to get 'buy-in' is extremely difficult, but this is what crisis management is about.
……..Treat people as you will like to be treated!
When people feel victimized or disrespected at a time when hopefulness is in short supply 'water will be splashed' on those in authority or worse.

[Monkey Man]

Work orders are out

[j.o.e]

Work orders are out

Men making time to edit for these kinda stalers?

[The_Honourable]

Govt silent on Petrotrin refinery shutdown



The government remains silent about the fate of Petrotrin, after a surprise announcement yesterday that the board had decided to shut down the 101-year-old Pointe-a-Pierre refinery.

Energy Minister Franklin Khan, Communications Minister Stuart Young, Finance Minister Colm Imbert and Prime Minister Dr Keith Rowley did not respond to Newsday’s several requests for comment.

Rowley is, however, scheduled to address the nation about the future of Petrotrin, owners and operators of the refinery.

Yesterday the company announced it will shut down its refinery and marketing operations and focus on exploration and production.

Over 2,500 employees will be affected, with up to 1,700 refinery jobs to be terminated.

This shutdown is part of the state-owned Patrotrin's plan to restructure and manage its crippling debts, as well as attempt to return to profitability. For the third quarter of 2018, it even boasted an $85 million profit. The transition period for the shutdown will begin on October 1.

Petrotrin chairman Wilfred Espinet told the media yesterday there were no plans to sell the refinery.

All refined products will be imported, while all the company’s oil will be exported. Petrotrin produces approximately 40,000 barrels of oil today. The refinery capacity is 140,000, which means the company has had to import 100,000 barrels per day to reach nameplate production. Because of this, the company is a net user of foreign exchange.

On a plane ride back to Trinidad from Caracas, Venezuela on Saturday, Rowley told reporters in an informal briefing that Petrotrin was the only oil company he had ever heard of that had developed a policy of being in the oil business and not looking for oil.

His criticism, though, is in contrast to the sentiments he expressed at a press conference earlier that day at the Miraflores Palace, where he had teased the possibility that TT could one day refine Venezuelan oil. Venezuela has the biggest oil reserves in the world, but is currently under severe economic constraint.

Source: https://newsday.co.tt/2018/08/28/govt-s ... -shutdown/

[gastly369]

2500....

Ooookkkkkk....

[sMASH]

If petrotrin didn't have to repay both those bonds, if those bonds are excluded from the equation, how would things look?

[shake d livin wake d dead]

allyyuh hadda wait till Sunday...growlers would address the nation

[*$kїđž!™]

Labour cost suck this company...greedy union for more dollars....overpaid workers...last year they strike for an increase...yup im sorry for these workers but they should have seen it coming....

[hydroep]

allyyuh hadda wait till Sunday...growlers would address the nation

The fate of one "big black hole" is going to be explained to the population by a "bigger black hole".

The irony...