Trinidad PM Warns of Potential Economic Turmoil from Venezuela Gas Deal
Trinidad and Tobago’s Prime Minister Dr. Keith Rowley has warned of potential challenges if the Dragon gas deal with Venezuela fails, stressing the need for solid energy agreements to ensure economic stability. He cautioned against complacency and highlighted the importance of sustaining revenue for government operations, amidst concerns regarding the future of gas supplies and the implications for public subsidies.
Prime Minister Dr. Keith Rowley has cautioned that Trinidad and Tobago may encounter severe consequences if the Dragon gas deal with Venezuela fails. During a recent ceremony commemorating the completion of the Port of Spain General Hospital, he expressed confidence in the validity of current agreements, yet emphasized that the nation’s financial obligations could face “calamity” if the United States revokes the necessary licenses or if Venezuela restricts access to its gas resources.
Dr. Rowley criticized individuals celebrating the prospect of the Dragon deal’s failure, reinforcing that energy agreements are vital for the country’s economic stability. He pointed out the unconventional notion of celebrating failure, likening it to rooting against one’s own team. He urged citizens to support and reinforce the successes achieved through cooperative ventures with Venezuela in the energy sector.
Stress was placed on Trinidad and Tobago’s reliance on energy deals, with Rowley lamenting a general complacency towards national achievements. He indicated that without energy production, the country may face dire financial issues, spotlighting the importance of securing gas extraction rights from Venezuelan fields in light of evolving geopolitical challenges.
Dr. Rowley acknowledged the significance of strong leadership in navigating these complexities and highlighted recent agreements facilitating Trinidad’s access to these valuable resources, even amidst U.S. sanctions. He stated that losing the license could lead to economic turmoil, indicating that the people’s future hinges on the successful execution of these energy initiatives.
Lastly, Rowley raised concerns about the long-term sustainability of Trinidad and Tobago’s gas supply and the potential repercussions for the national budget. He revealed that approximately $6 billion of the national budget of $60 billion is allocated to support those lacking alternative income sources, underlining the vital role of consistent revenue for maintaining government services and subsidies that citizens rely on, while cautioning against potential austerity measures from external funding sources like the IMF.
In conclusion, Prime Minister Rowley’s remarks underscore the precariousness of Trinidad and Tobago’s energy agreements, particularly the Dragon gas deal with Venezuela. The government’s future revenue stream is at risk from geopolitical factors, and any disruption in gas supply could lead to significant financial challenges. Strengthening these agreements is essential for safeguarding the country’s economic stability and maintaining vital public services.
Original Source: www.stabroeknews.com
