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Thursday, October 19 2017 @ 09:38 PM AST

Trinidad & Tobago needs 710 mmscfd of gas to meet domestic consumption demand

Rowley in Parliament April 12, 2017:

$4.5 BILLION IN CLAIMS AGAINST NGC FOR FAILURE TO SUPPLY CONTRACTED GAS

* In August 2015, claims against NGC for inability to supply gas started
* Methanol Holdings MHTL claimed $2.622 billion
* Caribbean Nitrogen CNC for the same period claimed $682 million
* Nitrogen 2000 Plant Unlimited claimed $686.6 million
* Point Lisas Nitrogen Limited (PLNL) claimed $543.9 million
* Total claims against NGC stood at $4.535 billion against NGC for its inability to supply gas according to contracts with these companies: Rowley

NGC FAILED TO MEET 36% OF ITS CONTRACTED OBLIGATIONS TO SUPPLY NATURAL GAS

* In 2015 NGC contracted to supply 1,960 mmscfd from four gas producers
* In 2016, BP conducted a deliverability test and contract volume was reduced to 255 mmscfd from a contracted volume of 319 mmscfd
* BG did not renew base contract and that led to loss of 250 mmscfd
* BHP increased by 30 mmscfd
* EOG based on deliverability test reduced contract volume by 100 mmscfd
* NGC lost 710 mmscfd of contracted gas in 2016 which represents 36% of contracted volumes. In other words, the NGC was unable to supply 36% of the gas it was contracted to supply and faced those liabilities of the $4.535 billion.

710 MMSCFD DEFICIT PERSISTS

* Estimated supply of volumes currently stand at 1,250 mmscfd vs consumption requirements of 1,960 mmscfd: Rowley

* "BG (now Shell) suffered major gas supply shortfall.
* * Starfish field failed production fall from 250 mmscfd to 0 mmscfd
* * Dolphin experienced production declines from 220 mmscfd to 0 mmscfd
* * (NOTE: BG's natural gas production averaged 867 mmscfd in 2015 and 695 mmscfd in 2016. BG production average for 2017 so far, which is up to February, 584 mmscfd)

* NGC negotiated to get 100 mmscfd from Shell until December 31, 2017

* NGC faced with claims from downstream contracted sales and reduction from upstream suppliers at the end of 2015: Rowley


HOUSTON - KEY TAKEAWAYS


* * * Trinidad & Tobago Prime Minister Rowley key takeaways from Houston visit to BP, ExxonMobil, EOG, Shell at the end of March 2017 * * *

* BP committed to Trinidad & Tobago but not at any price: Rowley
* T&T contributes about 15% of BP's global revenue
* TROC to come on stream this month of April ("that should be going on now") and Juniper from Q3 2017: Rowley
* BP currently drilling 2 exploration wells and committed to drilling 3 more in T&T
* "BP said that they were also prepared to look at hitherto ignored marginal fields and at the Manakin Cocuina cross-border field (with Venezuela) as well": Rowley
https://www.youtube.com/watch?v=dZO2K...p;t=65m50s

* NOTE: Three gas fields that straddle the T&T-Venezuela border. Loran-Manatee field has 10.25 tcf; 73.75 per cent of which is Venezuela's and 26.25 per cent of which is T&T's. In the 0.74 tcf Cocuina-Manakin field, 66 per cent belongs to T&T and 34 per cent to Venezuela. In the 0.31 tcf Dorado Kapok field, 15.9 per cent belongs to Venezuela and 84.10 per cent to T&T.
* NOTE 2: Cross-border hydrocarbon fields also exist with Grenada and Barbados.

* BP advised it was impossible to construct Angelin platform at La Brea without 6 mth delay
* BP agreed with T&T Govt on price of future gas supply including from Angelin, TROC
[ [ [ How much was that price? ] ] ]

* T&T Govt discussed with Royal Dutch Shell in Houston next steps for Dragon project, Starfish project "to be subject to new developmental objectives commencing in the next quarter", internships at Shell for UTT students: Rowley
* Shell committed to provide NGC with 100-105 mmscfd of gas to December 31, 2018

* ExxonMobil advised T&T interested in partnership with Guyana, discussions about oil being refined in Trinidad and Tobago, Exxon's obligation to do seismic, Exxon accepted invitation to asses T&T's ability to partner with Guyana: Rowley

* EOG and NGC agreed on price of future gas
[ [ [ How much was that price? ] ] ]
* EOG to recommence seismic and drilling in mature fields in Trinidad

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