Houston, Texas-Local taxes are consistently below national averages making the hub appealing to locate and expandProvide affordable site and building costs (commercial real estate costs are lower than the national average)Asystem which facilitates technology transfer between research institutions and the private sector Jurong, Island- Excellent physical planning where resources (e.g. human, man-made and natural) are spatially allocated within the cluster to promote cluster development. Singapore has developed a strong chemical cluster as the result of a determined strategy that has persisted over many years. The strategy includes;HRD (e.g. increase University intake, create a industry targeted educational system, promote subcontracting ,strong FDI policy( capital investment, research) and develop State of the Art infrastructure Iskandar Malaysia- Strong international linkages benefit the cluster in terms of innovation and technology There are incentives in the petrochemical sector (e.g. income tax exemptions for 10 years for companies which commence operations before Dec 31 2015)Point Lisas Refining Capacity (utilization)– 7.3 million boe
RFCD 2011: Dr. Thackwray Driver: Energy clusters
The Point Lisas petrochemical and metal industry cluster Dr. Thackwray Driver, CEO Energy Chamber of Trinidad and Tobago 9th November 2011
Key point:• The Point Lisas Industrial Estate represents a major a petrochemical and metal industry cluster - but further activity is needed to develop a dynamic energy and energy related industry cluster.
Why create a cluster? Enhances Sustainability of gas-based industry Simplifies Reduces Business Lead Time Processes Energy Stimulates Creates New Sustainable Cluster Business Employment Development Formation Increases Facilitates Productivity Innovation Improves Local Content
Point Lisas Industrial Estate11 Ammonia Plants7 Methanol Plants1 AUM facility, comprising • 1 ammonia plant • 1 urea plan • 1 nitric acid plant • 1 ammonia nitrate plant • 1 UAN plant • 2 melamine plants1 Urea Plant1 NGL Facility4 DRI Plants1 Lube Oil Blending Plant1 Bunker Fuel Service Facility1 Desalination Plant1 Power Generation Plants• Contributed c. US$3 billion in GDP (2011)• Employs roughly 20,000 (inc. temporary jobs)
Other major petrochemical clusters Strengths Houston Ship • Low Taxation Canal, Texas • Available Land • Industry Research Linkages(through-put: c. 5 million bpd) Jurong • Excellent Physical Planning Island, Singapore • Strategy Implementation(through-put: c. 1.2 million bpd) Iskandar, Malaysia • Strong International Linkages (through-put: c. 560,000 bpd) • Tax Exemptions Antwerp, Belgium • Comprehensive Land-Use Plan (through-put: c. 360,000 bpd) • Able to adapt Production to Market Trends
Point Lisas Petrochemical/ Metal Industry ClusterAnchor tenants (plants)Utilities (gas, water, power)Port facilities (container and bulk)Contractors and suppliersUniversity (research and training)Tech. Voc. trainingOther services (banks, offices, restaurants)Governmental/business development
Existing cluster collaboration• Health safety and environment : – Safe to Work – PLEA Pass/Energy Chamber Learning Centre• Technical and vocational training: – National Energy Skills Centre – Energy Industry Competency Development Initiative – University of Trinidad & Tobago• Research linkages with UTT: – Methanol to Power – Single cell protein
Where we could do more:• Trinidad & Tobago financing into the sector (other than contractors overdrafts)• Creation of trading floors to the T&T commodity products• Integrated transport plan• Better research – industry collaboration• Better corporate facilities (including recreation)• ICT plan designed specifically to support the cluster• Science and office park (encourage upstream MNC head-offices)• Ministry of Energy and Energy Affairs - do they need to be in Port of Spain?
Where do we go from here?Exploit waste streams Collaborate Technology Solar park Develop a comprehensive land-use plan - space for new plants, service companies, corporations and recreation.
Thank-youContacts: www.energy.tt Tel: 6-ENERGY Trinidad & Tobago Energy Conference 6 – 8 February 2012