ALNG partners continue push for increased throughput

Curtis Williams
OGJ Correspondent

PORT OF SPAIN, Nov. 10 -- Trinidad and Tobago will decide by yearend if it will approve the debottlenecking of Atlantic LNG’s four trains and the export of an additional 300 MMcfd of natural gas.

The Caribbean twin-island nation’s Energy Minister Carolyn Seepersad-Bachan said the government is studying whether at this stage the country has the gas to commit to LNG.

“Our concern is that these contracts are long term and while it is true that we have an oversupply situation at the moment, we are talking about 20-year contracts. We have to study whether we will be able to support further expansion,” Seepersad-Bachan said.

ALNG partners have been pushing for the increase throughput in the plant saying it will take 18 months to complete the debottlenecking at a cost of $550 million.

BP Trinidad & Tobago’s outgoing Chairman and Chief Executive Officer Robert Riley said the LNG partners think this could be beneficial to all the parties.

“We saw that as giving the government a relatively quick boost in income stream,” Riley told OGJ. “We saw it as giving it a relatively quick boost in economic activity because things have to go on at Point Fortin and we saw it as being reasonably neutral as to gas supply over the long term,” he said.

“We saw it as dealing with a problem which is that the industry has invested in gas production which it cannot deliver starting in 2011 so we saw it as win-win for the state and us,” Riley added.

He said he felt that debottlenecking was a better option than the construction of a new train. “We think that if you are going to expand LNG in any way the first step must be to maximize the throughput of the existing plant. We believe that is the most efficient use of capital,” he said.

Riley said LNG still remained the most attractive option for the upstream producers to sell their natural gas since they earn twice from LNG what they get from the domestic market.

Riley said while the new government has been clear with the upstream producers that they want them to explore their present acreage and go into the deep water it has not been as clear on the market side of the business. He added that the signs appear to show some trepidation on the part of the new administration.

“Some of the early statements would suggest that there is some skepticism about debottlenecking,” he said. “We still believe that the shortest route to solving the acute oversupply problem we have near term is to put more gas through [ALNG]. Certainly revenue yield from LNG even at these prices is still as good as or better than the domestic industry for the government,” Riley said.

“But the dilemma for the government long term is what if we get out there then having de bottlenecked and we aren’t finding sources of gas sufficiently quickly to cater for that expansion and also to deal with some the domestic opportunities that they want to bring,” he noted.

Related Articles

Woodside to buy Apache’s interests in Wheatstone, Kitimat LNG for $2.75 billion

12/15/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

Watching Government: Russia: On the ropes?

12/15/2014 Russia's Dec. 1 cancellation of its South Stream natural gas pipeline was not surprising. European nations have signaled for years that they intend...

Canada Briefs

12/12/2014

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Magnolia LNG lets EPC contract to SK E&C USA

12/03/2014 Magnolia LNG LLC parent-company Liquefied Natural Gas Ltd. agreed to an engineering, procurement, and construction contract with SK E&C USA cov...

Pipeline leak dampens Atlantic LNG production

12/01/2014 Atlantic LNG (ALNG) reported a 35% reduction in LNG production because of insufficient natural gas supply from Trinidad and Tobago’s National Gas C...

Real-time monitoring improves LNG inventory measurement

12/01/2014 Kogas has improved the calculation method for determining stocks at its LNG terminals, changing from a sampling method to a real-time monitoring sy...

Watching Government: Greece and energy in Europe

11/24/2014 Amid growing energy supply geopolitics, Greece is a stable anchor within a rapidly destabilizing region, Yannis Maniatis, its Environment, Energy, ...

Freeport LNG nears construction phase

11/19/2014 Freeport LNG Expansion LP expects later this month to close on financing and begin construction on the first two trains of its natural gas liquefac...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected