Trinidad and Tobago seeks gas for local use

Feb. 22, 2006
The government of Trinidad and Tobago has told oil and gas companies wanting to be part of future LNG expansions that they will have to commit some of their gas for domestic use.

Curtis Williams
OGJ Correspondent

PORT OF SPAIN, Feb. 22 -- The government of Trinidad and Tobago has told oil and gas companies wanting to be part of future LNG expansions that they will have to commit some of their gas for domestic use.

Prime Minister Patrick Manning set out the condition during a ceremony to mark the completion of Atlantic LNG Co. of Trinidad and Tobago's Train 4.

"A fifth train is going to come, and we are going to institute a policy that if you want to have access to export gas, you must commit some of your reserves to domestic gas utilization—that policy is well on the way," Manning said. When the fifth train comes, he added, "we are going to pause, and we are going to have another look."

There has been increasing concern in the Caribbean island about the availability of gas for domestic consumption, including for methanol, ammonia, urea, and aluminum projects already approved by the Trinidad and Tobago government.

Gas producers have been accused of being more interested in exporting LNG than selling gas locally because of a huge differential in returns to the companies.

Trinidad and Tobago accounts for nearly 80% of the LNG imported by the US.

Train 4 has been designed for a capacity of 5.2 million tonnes/year of LNG for export and as much as 12,000 b/d of NGL. It is one of the world's largest LNG trains in operation. The Train 4 project also features an additional 700 m jetty and a 160,000 cu m storage tank.

Train 4 uses a nominal 804 MMscfd of gas supplied principally by BP Trinidad and Tobago and BG/North Coast Marine Area partners. BG's supply of gas will come from reserves off east and north coasts and BP's from the southeast coast.