Energy Minister Franklin Khan is optimistic that negotiations between Caribbean Nitrogen Company (CNC) and National Gas Company (NGC) will come to an amicable settlement next week, stating it was not a permanent shut down by CNC.
Khan was responding yesterday to questions in Parliament, three days after CNC announced plans to shut down its ammonia plant because of the non-supply of natural gas from NGC. The shut down has led to 400 of CNC’s workers losing their jobs.
Asked about the losses incurred as a result of the shut down, Khan tried to avoid answering the question, saying that there was a commercial negotiation between the two companies which were at a sensitive stage, as the House erupted into an uproar.
Though he did not have precise figures, Khan said for a two-day shut down “the actual figure would be very small. In any event, NGC is selling the gas somewhere else.”
He said it was not a permanent shut down of CNC.
“It is not. This has resulted in the breakdown of a commercial operation for a gas sale contract. Most matters of which have already been settled. The last matter to be settled is the actual price of gas.”
Khan said, “I am of the firm view that the parties will return to the table next week….and hopefully there would be a compromise on both sides and we would have a settlement of this matter.”
Khan said the contract expired last October.
“They were given three extensions. The last extension finished on 24th January,” stating that NGC has been trying its best to bring the matter to an amicable solution.
“But for heaven sake, let a commercial negotiation remain in the realm of commercial negotiation... do not bring it in Parliament,” Khan pleaded.
Prime Minister Dr Keith Rowley, who also responded to questions on the issue, was asked by Oropouche West MP Roodal Moonilal what steps Government had taken to prevent the continued shut down of CNC.
Rowley said the issue surrounding the operations of CNC and NGC was a commercial arrangement.
“And in so far as the Government owns NGC that is as far as it goes at the moment. We trust that negotiations will continue in the appropriate quarters.”
He said NGC’s function was to negotiate fair contracts and that “we get a fair benefit for gas extracted from our fields.” Given that 400 jobs have been put on the line, Moonilal asked the PM when he found out about CNC’s impending crisis.
“I am not aware that the issue is one of workers and time of knowledge. This is a commercial contract to be negotiated and the issue of workers arise with respect to the operations of CNC and they are not directly linked…because whether there are workers or no workers…contract or no contract these operations remain negotiations between two commercial entities.”
Rowley made it clear that the operations between NGC and CNC did not require Cabinet sanction.
Asked if the ministries of Labour and Energy should intervene to bring a resolution to the matter, Rowley said he did not see a role for labour or the wider Government.
However, Rowley said depending on the issue there would be a role for the Energy Ministry, minister, Government and “possibly Parliament.”
Chaguanas West MP Ganga Singh queried from Rowley if Government was taking a hands-off approach on the issue.
“Certainly not,” stating that there is a minister responsible for NGC. The fact that we are not jumping into a contract to interfere with the negotiations, as we are being encouraged to do, does not mean that we are taking a hands-off position. We are taking a hands-on through the NGC.”
Asked if Government was supportive of an independent audit of NGC gas supply, Rowley said the client of NGC had demanded that they open its books to determine if they were having too much or too little profits in its operations.
He said an independent audit of NGC should be of interest to all to determine whether “NGC should be in business at all.” Moonilal enquired if there was need for political intervention to save the jobs.
“This matter is not one about saving 400 jobs. It is one that is much larger than that.”