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The Energy Chamber of Trinidad and Tobago has warned that the potential closure of Nutrien Trinidad Ltd would deliver a severe blow to the national economy. “The potential closure of Nutrien’s operations would be a massive blow to the T&T economy, representing a loss of 31% of national ammonia production and exports, a shortfall of over 1.2 million metric tonnes,” the Chamber said in a release yesterday. It noted that while this represents a major setback for T&T, Nutrien has indicated that “there will not be a global drop in supply, as their North American operations are prepared to fulfil the shortfall in their overall projected sales”. Nutrien Trinidad safely shut down its Point Lisas operations on October 23, despite receiving permission on the night of October 22 to continue using the ports until the end of the year. The move follows ongoing disputes with the National Energy Corporation (NEC) over alleged retroactive port service fees and restricted port access. The company also stated that a lack of reliable and economically viable natural gas supply has reduced the free cash flow of its Trinidad operations over an extended period. It added that the shutdown will remain in effect until a sustainable operating environment can be re-established, a decision that will affect some 600 employees. The Chamber pointed out that ammonia production in T&T has declined significantly over the past decade, “primarily due to issues with the supply of natural gas”. “This echoes a similar trend in the country’s methanol sector, which has fallen by about 27 per cent since 2010. The number of operational plants has also decreased, with Yara shutting down one facility in 2019 and Nutrien taking another offline during that period,” it stated. According to the Chamber, “a significant part of the problem stems from a national reduction in natural gas production, which has complicated allocations for petrochemical and LNG (liquefied natural gas) plants. Historically, downstream companies received long-term gas supply contracts of up to 20 years. More recently, however, companies have been issued much shorter contracts, reportedly three years, often, at higher prices, which has lengthened and complicated negotiation processes.” It added that, beyond gas supply challenges, the ongoing commercial dispute between Nutrien and the NEC over port access and fees has further strained operations, and similar issues now affect other producers in T&T. T&T remains a major global player in the ammonia market, ranking among the world’s largest exporters of the commodity. “In 2024, the country’s eleven facilities operated by four producers: Proman, Nutrien, Yara, and Pt Lisas Nitrogen Ltd (PLNL), produced just over 4 million metric tonnes of ammonia. Proman is the largest producer, accounting for 38% of national output, followed by Nutrien at 31 %, Yara at 19%, and PLNL at 11%,” the Chamber stated. It stressed that the ammonia sector remains a vital pillar of the T&T economy, a major contributor to manufacturing GDP, a key source of government tax revenue, and a leading earner of foreign exchange. “In fact, in 2024 T&T exported over US$1.2 billion worth of ammonia. Beyond national finances, the downstream sector is also a major employer of direct staff, contractors, and itinerant workers,” the Chamber noted.
