Trinidad signs agreement with BP and Shell

CMC:

During yesterday’s post-Cabinet media conference, minister in the Of­fice of the Prime Min­is­ter Stu­art Young said the agree­ment in­volves new pric­ing arrange­ments, the ex­ten­sion of the At­lantic LNG Train 1 by a fur­ther five years, and the ability of the Na­tion­al Gas Com­pa­ny (NGC) to ex­port liqui­fied nat­ur­al gas (LNG) on be­half of Trinidad and Tobago.

According to Young, the dis­cus­sions start­ed in April when Prime Min­is­ter Dr Kei­th Row­ley led a del­e­ga­tion to the Com­mon­wealth Heads of Gov­ern­ment Meet­ing (CHOGM) in Lon­don.

He added that out of that meet­ing, all three par­ties agreed to ap­point em­pow­ered ne­go­ti­at­ing teams to sit and ne­go­ti­ate terms of con­tracts go­ing for­ward.

“I am hap­py to say that af­ter months of very in­tense and ag­gres­sive ne­go­ti­a­tions, the Gov­ern­ment of Trinidad and Tobago has reached an agree­ment with BP and al­so with Shell,” Young said.

At­lantic LNG’s Train 1 was due to end op­er­a­tions in April 2019, but the min­is­ter now says it will con­tin­ue at least un­til 2024.

An LNG train is a liq­ue­fac­tion and pu­rifi­ca­tion fa­cil­i­ty that con­dens­es gas in­to a liq­uid state.

At­lantic LNG has four trains in its Point Fortin plant.

The con­ti­n­u­a­tion of the train will al­low for the con­tin­u­a­tion of jobs and fur­ther pro­duc­tion of liqui­fied nat­ur­al gas for ex­port and for sale to NGC.

NGC, Bp and Shell are among the share­hold­ers of Train 1.

The min­is­ter told reporters that he could not dis­close the new pric­ing for­mu­la agreed to by the en­er­gy com­pa­nies and gov­ern­ment, but says the new for­mu­la “sig­nif­i­cant­ly en­hances the rev­enue for the peo­ple of Trinidad and To­ba­go”.

He said this will al­so be the first time that the NGC will have the abil­i­ty to sell car­goes of LNG on be­half of the country.

“That is a ma­jor achieve­ment that we did not have be­fore,” Young said.

The min­is­ter said that the agree­ments were con­clud­ed on Wednesday and more de­tails will be re­vealed in time.