Barbados must explore policy options to protect itself from global energy supply shocks as geopolitical tensions continue to drive volatility in international oil and gas markets.
This was the warning yesterday from Minister of Energy, Business Development and Commerce Kerrie Symmonds as the House of Assembly resumed debate, after Thursday’s break, on the Appropriation Bill 2026, containing the Estimates of Revenue and Expenditure for the coming Financial year.
He said the country had to remain vigilant and strengthen its energy planning as global developments rapidly affect fuel prices and supply.
He reminded fellow legislators that Barbados remains heavily dependent on imported fossil fuels while transitioning towards renewable energy.
Symmonds pointed to the impact of the ongoing United States-Iran conflict, which he said had already triggered significant increases in oil prices within the span of a week.
He noted that Brent crude, which was trading at around US$68 per barrel prior to the conflict, had climbed to approximately US$84, while West Texas Intermediate crude moved from about US$69 to roughly US$80 per barrel.
Gas disruptions
“It is a matter of elementary mathematics to recognise that the world prices have moved to the tune of 16 per cent to 23 or 24 per cent over the course of the last week,” he said.
The Senior Minister added that disruptions in the global gas market were also a concern, pointing to developments where Qatar signalled a halt in gas production that could remove about 20 per cent of global natural gas supply from the market.
“If the war was to end tonight, it would still take at least another month for that dislocation to be corrected,” he said.
In response to these risks, Symmonds said Barbados must pursue several strategies to strengthen its energy resilience including expanding the island’s oil and gas storage capacity, reviewing supply contracts and ensuring the country maintains access to multiple energy suppliers to reduce vulnerability to international disruptions.
He also indicated that Government was continuing to pursue a broader multi-energy strategy designed to balance traditional fuel sources with new technologies.
“We believe that it is possible for us now to begin having serious discussions once again about having a low-risk but multi-energy type of portfolio.”
That portfolio, he pointed out, would include oil and gas supplies alongside low-carbon technologies, emissionsreduction strategies and deeper penetration of renewable energy across Barbados.
Government also intends to increase investment in renewable energy infrastructure, including energy storage systems and wind energy projects, both onshore and offshore.
Symmonds was speaking as he presented Head 41 of the Estimates, which seeks parliamentary approval for $81.1 million to support the work of his ministry.
He said its responsibilities spanned several critical areas, including energy and natural resources, micro-enterprise development, cooperatives, utilities regulation, consumer protection and private sector development.
Together, these functions position the ministry as a key driver of economic transformation in Barbados, he said.
Development
“It is impossible, in my judgement, to speak to the question of economic development and economic transformation without addressing what is now the gorilla in the room – the energy sector,” he said.
While Barbados continues to accelerate its renewable energy transition, Symmonds acknowledged that the country will remain reliant on imported fossil fuels for several more years.
As a result, he added, careful policy planning and diversification of energy sources will remain essential to protecting the economy and shielding consumers from global shocks.
He also highlighted initiatives to strengthen the business environment, including increased support for microenterprise development, expansion of Trust Loan and Fund Access financing, and new systems such as an electronic single window and collateral registry to improve access to finance.
Symmonds said these initiatives formed part of Government’s broader push to drive inclusive economic growth.
“We cannot have an inclusive growth approach to our economy unless we take the ordinary Barbadian on that journey with us,” he said.
He added that if the initiatives are successfully implemented during the current term, they could help reset and transform the Barbadian economy while strengthening its resilience to global shocks. (CLM)
Natural gas expansion a challenge
More Barbadian households want access to natural gas, but expanding the provision of it is now a major challenge financially.
That was the explanation Minister of Energy, Business Development and Commerce Kerrie Symmonds and Barbados National Energy Co Ltd chief commercial officer James Browne gave yesterday in response to questions about making natural gas available to more Barbadians.
Symmonds pointed to various complexities involved, including the fact that expansion was expensive, three quarters of natural gas was imported, drilling new wells onshore would be costly and the cost of natural gas was now higher globally.
On these issues and the rates consumers paid for the commodity, he said his ministry and the Ministry of Finance would have to discuss the matter.
The natural gas issue was raised by Government backbencher Dr William Duguid on Day 4 of debate on the Appropriation Bill, 2026, in the House of Assembly.
The Member of Parliament for Christ Church West asked if there were any plans to expand the natural gas grid, noting that “many of our constituents come to us asking about natural gas because they see it as a cleaner and cheaper fuel”.
Browne said the cost of expansion, and access to natural gas, were a challenge.
Difficult
“When I first joined the National Petroleum Corporation, the cost for expansion was $30 per foot. It’s at $260 per foot now, which makes expansion very, very difficult, because . . . for every foot that we lay down, we have to recover it and the price of natural gas [paid by the customer] hasn’t risen consequentially,” he said.
“So it’s very, very difficult to have a proper return on investment or any expansion right now, unless we reduce the cost or we increase the rates, and rates are not something we want to increase.
“So we looking at the ability to reduce costs either from expansion of nondigging technology, and also [to] bring more liquefied natural gas to the table.”
Symmonds said that it was not “for any lack of ambition with regard to expanding the network, but the reality is that there are substantial expansion costs related, and equally because we have run down our existing domestic supply of natural gas to the point where only 25 per cent of what we use, we actually produce here”. (SC)