Trinidad and Tobago gas sector booming

Warren R. True
Pipeline/Gas Processing Editor

More industrial expansion will drive natural gas demand on Trinidad and Tobago in the near term.

That was the message offered in presentations at the Offshore Technology Conference last week by Minister of Energy and Energy Industries for Trinidad and Tobago Finbar K. Gangar and Clarence Harnanan, technical operations vice-president for National Gas Co. of Trinidad & Tobago Ltd. (NGC).

Investment in upstream and downstream sectors by NGC during 1996-99 was $5 billion; that figure could double by 2001. Negotiations are under way, said Gangar, for a steel manufacturing plant and a $1.6 billion venture with Norsk Hydro to build an aluminum smelter.

The two-train smelter, with each train having a capacity of 327,000 metric tons, will require 40 MW of gas-fired power. The smelter will effect a net increase in gas sales to NGC of 200 MMscfd, said Gangar.

In addition, a short list of investors for a planned 750,000 ton/year ethylene complex includes Nova Chemicals, Calgary. Final proposals are due from these companies by July 30, with an investment decision due by NGC by third quarter 2000.

Pipeline projects

Harnanan reviewed recently completed pipeline construction undertaken jointly by NGC and BP Amoco Co. of Trinidad & Tobago to support the new Atlantic LNG Plant at Point Fortin and additional demand for NGC's consumers (OGJ, Apr. 26, 1999, p. 30).

Construction has just been completed on BP Amoco's 60-mile, 40-in. OD pipeline from BP Amoco's Mahogany platform off Trinidad's southeastern coast, with subsea connections at Cassia and Amherstia fields, in addition to two other connections for future field development. This pipeline has a design capacity of 1.275 bscfd. NGC has transportation capacity of 450 MMscfd. BP Amoco has 825 MMscfd of capacity capable of supporting one and a half LNG trains-based on the Atlantic plant's train size.

Construction has been recently completed on a 50-mile, 36-in. OD pipeline from Beachfield on the east coast of Trinidad to Point Fortin. This line is owned by NGC and will be leased to BP Amoco for transportation of gas for LNG production.

Later this year, NGC will install a 42-mile, 36-in. OD pipeline from Beachfield to Picton, and on to Phoenix Park Gas Processors Ltd. at Point Lisas on the west coast (OGJ, Apr. 26, 1999, p. 30). When this pipeline is completed, NGC will have a transmission capacity of 1.4 bscfd. Harnanan said this will satisfy the projected gas demand to 2003, not including LNG.

Demand

These projects are based on 1998 demand and confirmed new demand of the plants under construction, and on demand estimated for projects under active consideration. Present demand for the Atlantic LNG trains is 475 MMscfd, but recent discoveries by offshore gas producers-BP Amoco, BG plc/Texaco Inc., and Enron Gas & Oil Trinidad Ltd.-indicate that additional gas reserves can support at least one more LNG train, in addition to gas demand from the projects being contemplated.

NGC has projected that, with the increase in demand for the aluminum smelter, an iron ore reduction plant, methanol plant, and an ammonia plant, projected gas demand after 2003 could reach 1.8-2.0 bcfd. NGC's current plans for the construction will add enough capacity to the transmission system to bring its total capacity to 2 bscfd for NGC and 1 bscfd for transportation of gas for LNG.