BGTT favors LNG for Trinidad and Tobago gas

Feb. 18, 2009
BG Trinidad & Tobago reported that it has more than 4 tcf of uncommitted natural gas in Trinidad and Tobago and is working on projects to monetize the gas.

Curtis Williams
OGJ Correspondent

PORT OF SPAIN, Feb. 18 -- BG Trinidad & Tobago reported that it has more than 4 tcf of uncommitted natural gas in Trinidad and Tobago and is working on projects to monetize the gas.

The announcement was made by BGTT Pres. Derek Hudson, who said that BG was particularly interested in LNG expansion.

"We are in the LNG business; we have been a successful LNG company; we were in the Train X study; and of course BG is extremely interested in seeing further LNG expansion."

However, Hudson said the company is prepared to work with Trinidad and Tobago on devising the best mix of projects that will benefit both BG Group and the people of the twin-island Caribbean nation.

Recently the company announced it had safely received first gas from its Poinsettia field development via its newly installed 20-in. pipeline connecting Poinsettia to the Hibiscus platform and to the Atlantic LNG system.

BGTT operates Poinsettia field, which lies about 40 km off northern Trinidad in the North Coast Marine Area.

Intrepid Block 5(c)
Hudson also revealed that his company will be taking over operatorship of Intrepid Block 5(c) in which its partner Canadian Superior has been the operator. The block lies 60 miles off eastern Trinidad in the Columbus basin.

In 2008, Canadian Superior, BGTT, and Challenger Energy Corp. announced two separate gas discoveries—the Victory and Bounty wells. The third well, Endeavour, has also discovered gas but is still being assessed.

Hudson said BGTT's decision to operate Block 5(c) rather than partner Canadian Superior was made in part because of BGTT's experience. He said, "I think it's because BG is probably better equipped because of the type of company we are and the experience we have in Trinidad and Tobago. In addition we have experience worldwide in gas, its development, and in other downstream development."

Hudson, however, was reluctant to say if Block 5(c) reserves are more than 3 tcf as has been suggested.

Hudson explained "We are just simply, for clarity, saying: Having just drilled three exploratory wells in a new area, its deeper off the East Coast than we have ever seen before. We are in reservoirs that we have encountered gas bearing sands before, but it is still some new terrain we are looking at, and we prefer to be circumspect."

Hudson also expressed hope that the Hugo Chavez administration will finally move to monetize the gas in the Plataforma Deltana area.

Trinidad and Tobago and Venezuela share gas in at least three large gas fields that run along their border.

This includes Loran-Manatee field, which contains 5 tcf of gas and in which 1.7 tcf is on the Trinidad side.

BG's partner Chevron Corp. is operator on both sides of the border.

Hudson said of the Venezuelan government: "I am hoping that they are serious because once they move forward with the monetization, it will facilitate the monetization of the Trinidad side, either towards Venezuela if it is commercially viable or towards Trinidad."