By Curtis Williams
OGJ Correspondent
PORT OF SPAIN, Apr. 16 -- The Trinidad and Tobago government, led by Prime Minister Patrick Manning, is intervening to end a 10 week workers' strike that jeopardizes Atlantic LNG Co. of Trinidad & Tobago Ltd.'s ability to complete construction of its Train four on schedule and has resulted in lead contractor Bechtel Corp.'s threatening to abandon the project.
Just over 2 months ago workers at Point Fortin, complaining of insufficient wages, stopped work and demanded a minimum of $7.50/hour—a 100% pay increase. An impasse has resulted, as the workers vow to remain idle until their demands are met, while Bechtel insists that acquiescence would elevate the $1.2 billion project's cost by nearly $200 million.
The strike has led to the resignation of former labor minister Lawrence Achong who supports the strikers, and Bechtel has sent home scores of its own employees as it prepares to demobilize after several meetings failed to resolve the standoff.
In addition, for 4 days Atlantic LNG had to flare natural gas and cease LNG production from its other three trains because tugboat pilots temporarily joined the protest action, precluding LNG carriers from entering the port to receive shipments. This led to millions of dollars in losses for Atlantic LNG and some late deliveries to the US, the company's major market. Trinidad and Tobago currently provides almost 70% of all LNG imported into the US.
Manning, urging both sides to negotiate further, said Trinidad and Tobago had given the US assurances that it can remain a safe, reliable supplier of LNG, but the strike may be compromising that commitment.
Atlantic's massive train four, scheduled to come on stream by first quarter 2006, will require 800 MMscfd of natural gas and produce 5.2 million tonnes/year of LNG, most of which will be sold to US markets under long-term contractual arrangements. The four trains together are expected to increase Atlantic LNG's overall production to more than 15 million tonnes/year of LNG.
