September 19, 2018 issue

Readers' Response

Guyana should build a modular 60,000 barrels refinery to meet its daily petroleum supply needs

Dear Editor:
Presently we import all of our refined petroleum products from crude oil such as motor gasoline, diesel, kerosene, fuel oil, jet fuel ,avgas, lubricants and bitumen. Crude oil production for the country will begin in 2020 and without a national refinery, we will continue to be exporters of raw materials and importers of manufactured goods which will be the same as in the colonial era. To break this backwards economic cycle, the need to refine the black gold becomes only logical.
Presently the production of refineries in the Caribbean does not fulfill the needs of the consumers in the region and with the imminent closure of Petrotrin this will only compound the problem of fuel security. Our next neighbouring refinery which is Staatsolie in Suriname refines approximately 20,000 barrels per day which basically serves their daily consumption. Other refineries such as Isla in Curacao, St Croix etc are small, old and creaking. Our short- and long-term fuel security lies in the construction of a 60,000 barrels modular refinery which will guarantee our daily supply of refined petroleum products.
A national refinery that will process 60,000 barrels of crude oil per day will basically cover our daily consumption plus products for export. Our average daily consumption is approximately 10,000 barrels of motor gasoline, 15,000 to 20,000 barrels of diesel with less than point three percent sulfur or the Ultra Low Sulfur Diesel, 3,000 barrels of domestic kerosene, 3,000 Barrels of Jet A1 Kerosene and 10,000 barrels of HFO. The remaining 17,000 barrels of products can be exported to the region. Also, byproducts of the refinery such as bitumen will come in handy for the Road and Belt Project, the sulfur can be processed as Sulphuric Acid or as powdered Sulfur used to make matches which we can do locally.
The base oil for lubricants can also be produced which will enable us to manufacture our own lubricants. These are some of the spinoffs from the refinery that will open up a whole new area of investment for the private sector.
The establishment of a refinery will require its own generating plant as well as an international certified laboratory to test and verify each batch of product. The generating plant is vital for reliable and stable power to prevent any shutdown during production. The generating plant can be built with excess power which can be sold to the national grid. Staatsolie in Suriname has this type of arrangement. A certified lab testing each batch will present an opportunity for our technicians to be trained to work in this lab.
Having a refinery in Guyana will present the opportunity for the University of Guyana to open a Faculty for Petroleum Production Engineers. I have personally witnessed the growth of Staatsolie local personnel at their refinery where when it was started the expatriates were about eighty percent and the locals twenty percent. Today it is totally the reverse with proud Surinamese running the refinery with over eighty percent of their own nationals.
Shipping will also see a boost. Oil tankers with low draft that can carry about 60,000 barrels will be needed to bring the crude oil from the Exxon Platform to the refinery and clean vessels will be needed to supply refined products to the oil majors and the region. This will present the opportunity for charterers, brokers, Insurance Agents and owners of oil tankers to participate in the trade.
A national modular 60,000 barrels refinery is the way to go. It will be a win-win situation.
Yours faithfully,
Reggie Bhagwandin, via email

 
Govt evading paying sugar
workers' severance
Dear Editor:
Sugar workers whose jobs were mercilessly ripped from them by APNU+AFC are legally entitled to their severance payments, having earned it by sweat and blood, none of them are asking for a handout, only what they are legally entitled to. The government, through GUYSUCO, was required by law to make those payments immediately after they ripped away the jobs from sugar workers. There are no “ands, ifs, buts”, no room for ambivalence, no room for excuses, pay the sugar workers their severance with interest now.
Instead of telling the sugar workers when they will be paid their overdue severance, behind their backs, President Granger tells his supporters that paying sugar workers is “haemorrhaging” the treasury. In doing so, he abrogates his responsibility to uphold the laws of Guyana. Instead of sitting with his Finance Minister and his Cabinet to determine a way to meet this legal expense, he makes another arrogant excuse. Clearly, paying the sugar workers their legally entitled severance is too painful for President Granger. In fact, when the decision was made to close four sugar estates, he was obligated to find a way to make the severance payment with immediate effect. Failure to do so then and failure to still do so now is reckless, unlawful and is misconduct in office.
The President did not have the decency to meet with sugar workers and tell them that they are “haemorrhaging” the treasury. He has steadfastly and egregiously refused to meet the sugar workers. Yet behind the backs of sugar workers, in front of his own supporters, the President constantly bemoans the fact that his government must pay sugar workers their severance. Clearly, he considers the payments unfair and undeserving. The President could think what he wants, the fact does not change – sugar workers earned severance and there is no room for prevarication.
As President Granger, his prime minister, and their cabinet continuously complain of the money the government has to invest in sugar, they conveniently ignore that sugar pumped close to $100B into the treasury to support government expenditures during the 1980s, including expenses to subsidize bauxite, pay public servants etc. Even now, sugar pays billions for non-sugar drainage and irrigation. Investments to support sugar are not a handout or a subsidy, as this government wants people to believe and a lie they deliberately have promoted to their supporters. They have demonized sugar and the sugar workers.
Since 2014, APNU+AFC has collected more than $150B in new revenues. This year alone, they are likely to collect $70B more than they did in 2014. In fact, the GRA boasts that in the first half of 2018, they have collected more than $8B than they did in the same period in 2017. How then is the severance that they legally owe the sugar workers a drain on the treasury? Is the additional $1B paid to themselves in the cabinet in bigger salaries this term also “haemorrhaging” the treasury? Just two weeks ago in his press conference, President Granger assured the nation that the significant pay increases for the APNU+AFC cabinet has no impact on the treasury. But paying sugar workers their severance is a “haemorrhage” on the treasury. This is elitist and discriminatory.
Yours faithfully,
Dr. Leslie Ramsammy, via email
 
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