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The Nutrien Shutdown in Trinidad and Tobago

  • Writer: Nirvana Persad
    Nirvana Persad
  • 2 days ago
  • 2 min read

Nutrien, a global giant in nitrogen fertilisers, announced its controlled shutdown of operations in

the Republic of Trinidad in October of 2025. This has led to the unemployment of approximately 600 workers within the country. The decision was made due to the intractable impasse with Trinidad’s National Energy Corporation (NEC) and related disputes over port access fees, compounded by unreliable and uneconomic natural gas supply. While such industrial closures are seldom isolated in impact, the implications here ripple through T&T’s energy sector, food and beverage industry, and investor confidence in its petrochemical regime.


The heart of the conflict stems from the negotiation collapse over expired “Pier User Agreements”

(PUAs). Nutrien’s 2006 PUA expired on December 31, 2020, and NEC attempted to impose updated rates, ranging from US $0.02 up to US $2.00 per metric ton, applied retroactively. NCE contends that legacy “peppercorn” rates granted under older agreements deprived the public of T&T of over US $500 million in fees. However, Nutrien argued that said retroactive demands undermined the economic viability of continuing operations and insisted that negotiations begin after rescinding the charges.


In turn, NCE asserts it offered Nutrien continued access to port facilities at the old rates through

December 31 and appealed for a fresh PUA negotiation. Despite this, Nutrien declined and withdrew its injunction application, citing unresolved challenges over gas supply and financial burdens. Thus, on October 23, the shutdown commenced, encompassing four ammonia plants and one ureas plant and displacing 600 employees.


The closure’s immediate fallout underscores interdependence across sectors, as a key casualty is

Trinidad’s supply of carbon dioxide (CO2), which is a by-product of ammonia production and vital for a myriad of industries, including medical services, food and beverage carbonation, and cold storage. Massy Gas, which is the principal supplier of CO2 locally, announced the suspension of all CO2 products, triggering concerns across healthcare and manufacturing chains. In response, the National Gas Company (NGC) has moved to secure alternate supplies of CO2 via Proman and Plipdeco. While NGC asserts production continuity and stable pricing, uncertainty is present over the sustainability of these alternatives.


On a macroeconomic scale, the shutdown threatens investor sentiment in T&T’s energy and

petrochemical sector. Former minister, Stuart Young, warned that the deterioration in relations with major operators weakens the country’s competitiveness and undermines the country’s ability to attract and retain foreign capital. T&T’s energy sector is a linchpin for foreign exchange and economic stability; missteps here risk cascading effects beyond a single firm’s operations.


The crisis also surfaces deeper structural questions. Is retrospective enforcement of fees justifiable when it destabilises major industrial anchors?How should public authorities balance revenue collection with maintaining competitiveness in capital-intensive sectors? How resilient is T&T’s industrial ecosystem if a single plant’s closure disrupts essential supplies like CO2? In its response, the government must calibrate firm negotiation with strategic accomodation; poorly managed resolution may invite greater loss.


The shutdown of Nutrien’s Trinidad operations stems from more than labour disputes or port

charges. It reveals the deep running fault lines in industrial policy, infrastructure governance, and

stakeholder trust. Moving forward, the economy must safeguard fiscal equity without eroding investment incentives. Further, it must be ensured that downstream citizens and industries, not just governments, do not bear the heaviest burden.

 
 
 

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