Trinidad and Tobago Oil and Gas Downstream Market - Growth, Trends, and Forecasts (2020 - 2025)

The Trinidad and Tobago oil and gas downstream market is expected to grow at a CAGR of more than 1.0% over the period of 2020-2025. Factors such as increasing production and consumption of natural gas in the country are expected to drive the market by providing for a cheaper feedstock for petrochemical plants by supplanting the requirement of cost and third-party organizations. However, declining oil production is expected to restrain the market.

• The refining sector witnessed a significant change in late 2018 when the only refinery in the country was closed. The help of a private company and workers union is expected to restart the refinery. However, no new refinery is expected, and therefore, refining capacity is expected to remain stagnant.
• Many refineries and petrochemical companies across the world are transitioning from significant producer of gasoline and diesel to a more chemical production-based approach. This transition can act as an opportunity for market players in the segment.
• The country has seen an increase in the production and consumption of natural gas, which, in turn, is expected to boost the petrochemical sector and drive the market.

Key Market Trends

Refineries Segment to Remain Stagnant

• Trinidad and Tobago is a heavy oil export-dependent country with more than 40% of the exports accounted for by the export of oil. The downstream sector in the country has remained stagnant at 165 Thousand barrels daily during the 2015 - 2018 period. The only refinery in the country was stopped in late 2018.
• The refinery in the country is expected to be restarted in late 2020 after being sold by the government of Trinidad and Tobago to a private company named Patriotic Energies and Technologies (Pet), which is also partly owned by Trinidad's oil labor union OWTU. The main reason cited by the government for selling the refinery was the overall loss from the refinery.
• No new investments or expansion in the refining sector is expected to occur in the forecast period. The government is focusing its investments on the midstream and upstream sectors of the industry.
• Therefore, due to no new investment in the refinery sector, it is expected to remain stagnant in the forecast period.

Increasing Natural Gas Production and Consumption to Drive the Market

• The natural gas consumption in the country has increased slightly, by 0.3%, to 13.16 Million tonnes oil equivalent, in 2018 from 13.12 million tonnes oil equivalent, in 2017. Increasing consumption of natural gas correlates with the different required application of natural gas.
• The production of gas is used by the downstream sector for petrochemical plants. Most of the oil and gas produced in the country are exported, most of which go to the United States. As of 2019, the refinery is shut, so no refined oil is being exported.
• AUM is an integrated Ammonia, Urea Ammonium Nitrate Solution, and Melamine Complex. The petrochemical plant is among the biggest on the island nation, with MHTL and Ferrostaal GmbH contributing to its operations.
• Hence, the Trinidad and Tobago downstream sector are expected to witness slight growth in the petrochemical sector due to an increase in the natural gas consumption in the country.

Competitive Landscape

The Trinidad and Tobago oil and gas downstream market is consolidated. Some of the key players in this market are Ferrostaal GmbH, Methanol Holdings (Trinidad) Limited, Proman AG, Petroleum Company of Trinidad and Tobago Limited (Petrotrin), and Toyo Engineering Corporation.

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