Curtis Williams
OGJ Correspondent
PORT OF SPAIN, June 11 -- An unprecedented multimillion-dollar natural gas pipeline building program is now under way in Trinidad and Tobago that is designed to meet the Caribbean island's gas needs for the rest of the decade.
The $550 million project has three main components and includes both offshore and onshore pipelaying. The Caribbean island's NGC Trinidad & Tobago LNG Ltd. is constructing a $200 million, 56-in. Cross Island Pipeline, which would have the capacity to transport 2.4 bcfd of gas without compression.
The line's principal purpose would be to transport the 800 MMcfd of gas required by Atlantic LNG Co. of Trinidad & Tobago's Train 4 and also caters for similar amounts of gas for the fifth train, should the government agree to further LNG expansion. But the Cross Island Pipeline will also provide gas to the Union Industrial Estate, which is being developed near La Brea, south of the island.
Pipeline details
The pipeline was originally a joint venture project that included NGC, BP PLC unit Amoco Trinidad (LNG) BV, British Gas Trinidad LNG Ltd., Repsol LNG Port Spain BV, and Tractebel Trinidad LNG Ltd., but became a sole NGC project after the government decided that NGC should be wholly responsible for the transmission of gas across Trinidad and Tobago.
NGC Pres. Frank Look Kin said that the company would establish a wholly owned subsidiary, NGC Pipeline Co. Ltd., to own and operate the new line. Look Kin added that the decision to build the pipeline without its Atlantic LNG partners was part of the government's policy that the highest level of "local value" should be achieved in major energy sector projects.
Look Kin said he expected additional revenue to be raised from the pipeline through charging customers a separate tariff for gas transmission rather than simply charging for gas sales. At present the transmission cost is included in the sale price. Look Kin noted, however, that by charging a separate tariff, the price would more closely reflect that of the actual cost of gas transmission.
In addition, Look Kin said that the BP unit has already expressed a desire to "offload" gas from its 36-in. gas line, which transports gas from Beachfield in Guayaguayare on Trinidad's east coast to Atlantic LNG on the island's southwestern coast.
BP's line, which is leased by the BP unit from NGC, transports 760 MMcfd to Atlantic LNG' Trains 1 and 2. With the recent coming on stream of the third train, it has reached its transmission capacity.
However, with Atlantic LNG's decision to upgrade Train 1 to produce even more LNG, it would require even more gas, which could be transported by the Cross Island Pipeline.
Other pipelines
Among the other pipelines being constructed are the 48-in. Bombax pipeline, which BP is building to link its new Cassia B central processing unit (CPU) in its Cassia field off Trinidad and Tobago's east coast, to its facilities at Rustville in Guayaguayare. The 65 km pipeline can transport 1.8 bcfd of gas at an operating pressure of 1,070 psi. It is the largest-diameter offshore pipeline ever built by BP and one of the largest in the world.
BP will consolidate its supply for Atlantic LNG's Train 1 and its share of gas in Trains 2 and 3 through the Bombax pipeline along with gas for the Atlas Methanol plant, which is under construction. BP also will supply another 600 MMcfd to NGC under its domestic gas contract. The pipeline is expected to cost $190 million.
Also, a new, 36-in. gas pipeline is to be built to link the Cassia B CPU to an hub that NGC is creating onshore to increase its transmission capacity. The additional line will transport 700 MMcfd of gas and cost $150 million.
