BG, ChevronTexaco expand interests in Atlantic Basin LNG
BG Group PLC reported that Hibiscus field, in the North Coast Marine Area off the north coast of Trinidad and Tobago, has produced first gas into the newly commissioned Train 2 at Atlantic LNG Co.
By OGJ editors
HOUSTON, Aug. 23 -- BG Group PLC reported that Hibiscus field, in the North Coast Marine Area (NCMA) off the north coast of Trinidad and Tobago, has produced first gas into the newly commissioned Train 2 at Atlantic LNG Co. (ALNG) of Trinidad & Tobago's complex at Point Fortin.
NCMA is 40 km offshore and comprises three gas fields—Hibiscus, Poinsettia, and Chaconia—with total proved and probable reserves of 2.4 tcf, BG said.
NCMA, which is one of the largest offshore developments in the waters surrounding the dual island nation, is anticipated to supply 240 MMscfd to Train 2 for a 20-year period. Partners in NCMA are operator BG 45.9%, state oil and gas company Petroleum Co. of Trinidad & Tobago Ltd. (Petrotrin) 19.5%, Italy's Agip SPA 17.3%, and Petro-Canada 17.3%.
"BG Group's strategy to link indigenous reserves with world-class projects has been realized with a new gas province offshore Trinidad, and one which underpins our shareholding in the Atlantic LNG expansion, said Martin Houston, executive vice-president, BG Group.
Three wells are to be drilled in Phase 2 of NCMA's development scheme. The wells are to be brought into production during the second quarter of 2003. During Phase 3, six subsea wells will be drilled in Poinsettia field; these will begin production in 2009. "A possible fourth phase would involve installation of compression facilities on the Hibiscus platform," BG said.
East Coast development
Meanwhile BG and 50:50 joint venture partner ChevronTexaco Corp. have received approval from Trinidad's Ministry of Energy and Energy Industries to develop Dolphin Deep and Starfish natural gas fields in the East Coast Marine Area (ECMA) for sale to the US.
The fields will supply a long-term contract with El Paso Merchant Energy LP to deliver 80 MMcfd of natural gas, in the form of LNG, to Southern LNG's Elba Island regasification terminal in Georgia during 2005-23.
BG Trinidad & Tobago (BG T&T) operates Dolphin, which currently supplies more than 260 MMscfd of natural gas to National Gas Co. of Trinidad & Tobago for domestic use.
Under the US supply agreement, natural gas from the fields will be processed into LNG at the ALNG's third-train facility, currently under construction and scheduled to start up in second quarter 2003.
BG said its capacity in Train 3 is 125 MMscfd that will be supplied from NCMA for the first 2 years, and thereafter with 45 MMscfd from NCMA and the 80 MMscfd from the ECMA.
LNG exports from the two-island nation are growing rapidly and supplied 43% of the LNG imported into the US in 2000 (OGJ, Aug. 12, pp. 18, 20, and 22).
ALNG's $1.1 billion two-train Point Fortin expansion is due to increase gross LNG production to 9.9 million tonnes/year from 3.3 million tonnes/year when Train 3 comes on stream. Fourth, fifth, and sixth trains are also planned for the facility.
BG T&T Vice-President Peter Dranfield said: "Our growth in gas production offshore Trinidad and Tobago is planned to keep pace with the rapidly expanding liquefaction plant at (ALNG) which is set to become one of the world's largest liquefaction facilities. We very much look forward to commencement of production into Train 3 and a successful outcome to the current negotiations with the Government of the Republic of Trinidad and Tobago to allow the proposed 5.2 million tonne Train 4 to be operational in late 2005."
BG Executive Vice-President Martin Houston said: "BG Group's strategy to link indigenous reserves with world class projects has been realized with a new gas province offshore Trinidad, and one which underpins our shareholding in the (ALNG) expansion."