Minister: Latin America Faces Unrealistic Demands from Energy Transition

The Latin America and the Caribbean (LAC) region needs energy security, Stuart Young, Trinidad and Tobago’s minister of energy and energy industries, said at a June 5 event hosted by the twin-island country’s Energy Chamber.

“We are led down different pathways that I personally don't believe are quite realistic,” Young said, referring to the energy transition during his keynote speech at the Caribbean Sustainable Energy Conference at the Hyatt Regency in the Caribbean island’s capital city Port of Spain, broadcasted live on Facebook.

Young said a number of smaller Caribbean islands face headwinds to generate electricity and that steps need to be taken to assist them.

“I beg and plead with the multilateral lending agencies…because in my view, the only way renewables become bankable in some of these jurisdictions is there has to be an element of grant funding,” Young said.

“So, if you are really interested in reducing emissions globally, you have to contribute because these smaller countries are not going to be able to afford it,” Young said.

Young said the Caribbean region needs to take charge of its own destiny.

RELATED

Trinidad’s Energy Minister Young Talks Gas Production, Venezuela and Atlantic LNG [WATCH]

EXCLUSIVE: National Energy President Paltoo Talks Energy Transition

To that end, Young said Trinidad continues to advocate for joining forces in the region with Guyana and Suriname to provide energy security for the rest of the region.

Trinidad has around 10 Tcf of gas, enough to last about 10 more years, according to BP’s Statistical Review of Energy, and is primarily a gas producer and exporter of liquefied natural gas, ammonia and methanol.

Guyana, where an Exxon Mobil Corp.-led consortium has found recoverable resources of over 11 Bboe in the Stabroek Block, continues to boost oil production and has significant associated gas resources. The consortium includes Hess Corp. and China’s CNOOC.

Suriname’s Block 58, where APA Corp. and TotalEnergies are drilling just adjacent to Stabroek, could also contain sizable oil and gas resources, according to reports from Rystad Energy.

Bankability headwinds

Young said bankability was a real issue for Latin America and smaller islands in the Caribbean, as well as their ability to reduce emissions, upgrade plants and move to renewables.

“And that's where the concept of bankability comes in. Another very frustrating concept,” Young said.

Young said the economies of small developing islands were seeing negative effects of climate change from beach erosion, droughts, excessive rainfall and flooding.

Minister Young said he was concerned about the region, despite “all of these nice sounding concepts” like the energy transition that he said were “being pushed on us by the rich developed countries.”

Young said the LAC region was being told to move towards renewables, solar, geothermal and wind turbines without a consideration for cost.

“Nobody talks about how these costs have been driven up. We all say, yes, the cost has come down, but in reality… the cost is a lot higher than it was before the Russian-Ukraine war.”

On Trinidad, Young said the country would continue to produce its oil and gas resources because they drive the economy, but said the country had the necessary infrastructure to go through the transition.

“Trinidad and Tobago is well-poised. We have the opportunity right in front of us to make sure that we go through this transition properly. [We’ve]done what is necessary and responsible towards reducing emissions,” Young said.