Wednesday, February 14, 2007

Info needed on gas for smelters

Contrary to misinformation stated by the political leader of the PNM, Fishermen and Friends of the Sea (FFOS) supports sustainable development. We must however have reasonable answers for reasonable questions and so we repeat for the leader the same questions the entire country asks, which to date remain deafeningly unanswered.

What exactly are the penalties that taxpayers will be forced to bear if we “give” the gas originally intended for ALNG to other new projects such as Alutrint and Alcoa, and are unable to supply gas to ALNG for the life of that project?

What are the exact netback, well head and all other named revenues and taxes from gas supplied to ALNG Trains I, II, III and IV? We know that the actual royalty revenues from Trains I to IV is only 1.25 per cent of the value of the gas, or US$50 million, compared to the US$4 billion projections of exports in gas for 2007. But what and how much exactly are the other taxes, if any?

How do these total gas revenues compare to similar underdeveloped countries with gas processing agreements similar to ours, such as East Timor and Malaysia?

What is the price which the people’s gas is to be sold to Alcoa and Alutrint and why is this price being hidden from parliamentary scrutiny?

How does the price of gas to be sold to aluminium compare with the existing price to other energy consumers such as the seven existing methanol facilities, the ten existing ammonia plants, Essar, Methanol Holdings, ethylene, polypropylene etc?

How does the average price of gas sold to the named sectors compare with the world market price which gas obtains currently?

Our country is a gas and oil-based economy, the wealth of which must be preserved/invested for future generations. After decades of corruption and boom wastefulness, the public has lost confidence in the integrity, accountability and transparency of governments.

The PNM would have a surge of support if only it would listen to the calls of the people for decency, sustainability, integrity, transparency, prudence, accountability and consultation.

Gary Aboud




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