Soca Warriors Online Discussion Forum
General => General Discussion => Topic started by: TrinInfinite on March 01, 2007, 12:02:42 AM
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Big step for gas reserves
The agreement between T&T and Venezuela on the division of the natural gas reserves in the Loran block, which straddles the narrow maritime area between the two countries, is a big step in the relationship between this country and its closest neighbour.
The agreement still needs to be signed and ratified by the respective governments—a process which hopefully will not be protracted given the importance of natural gas to this country’s economy.
The road to greater cross-border collaboration between the two countries began with the signing of the Memorandum of Understanding on the “unitisation” of the natural gas reserves in August 2003.
The MOU set the procedural framework for quantifying and allocating the gas located in the cross-border fields.
A statement from Venezuela’s Ministry of Energy 12 days ago indicated that a technical committee comprising representatives from both countries determined that the Loran field has reserves of about ten trillion cubic feet of natural gas.
There was also agreement that about 25 per cent of the reserves in the Loran field would belong to T&T while Venezuela would be entitled to about 75 per cent of the reserves.
From a T&T perspective, the agreement on the allocation of the natural gas reserves in the Loran field is extremely significant. It will eventually mean the addition of an estimated 2.5 trillion cubic feet of gas to the country’s reserves.
The agreement comes at a time when T&T’s natural gas reserves are in a state of decline as a result the recent failure by foreign energy companies operating in Trinidad waters to discover the “next” big new natural gas province.
The agreement, therefore, should go a long way in allaying the fears of some energy experts about the decline in the country’s natural gas reserves.
One option for using the gas in the Loran field would be to transport it to the liquefied natural gas (LNG) complex in Point Fortin.
Despite its best efforts, Venezuela has not been able to develop an LNG industry in the last 20 years while this country already has four producing LNG facilities.
Because Venezuela and T&T have decided to divide the Loran reserves in a 75/25 split, it may be possible to replicate the Atlantic LNG Train 1 model in which the suppliers of natural gas (bpTT and British Gas) were the largest shareholders.
It should not be beyond the capability of this country’s diplomats and energy technocrats to fashion a joint-venture company which brings together Venezuelan and T&T interests along with energy companies not currently involved in the liquefaction at Point Fortin.
These companies could build a fifth liquefaction facility at the LNG complex at Point Fortin. While this facility is still being called Train X because of the uncertainty surrounding it, Prime Minister Patrick Manning and Energy Minister Lenny Saith have indicated that they want the equity in the facility to be reflective of the diversity in the country’s energy sector.
Such a joint venture would require further serious commercial negotiations between the two countries and their representative companies.
The development of a jointly-owned LNG facility would go a long way to deepening the relationship between T&T and Venezuela. Many feel this relationship is not as warm at the government-to-government level as it used to be after T&T decided to stay out of Chavez’s Petro Caribe arrangements.
But as these proposed negotiations will come against the backdrop of the threatened nationalisation of foreign oil assets in Venezuela, T&T may have to engage in some extremely delicate financial diplomacy in order to assuage foreign investors while adding to the country’s natural gas reserves.
©2005-2006 Trinidad Publishing Company Limited
Designed by: Randall Rajkumar-Maharaj · Updated daily by: Nicholas Attai
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US got secret ALNG info
By ANDRE BAGOO Tuesday, December 7 2010
UNITED States Embassy officials were last year asked by US Secretary of State Hillary Clinton to conduct secret information-gathering on the facilities of Atlantic LNG because its loss would possibly have an “immediate and deleterious effect on the United States”, according to a leaked cable published online by whistle-blowing site Wikileaks.
According to a cable classed as top secret, but published on the Wikileaks website this month, Clinton included TT’s natural gas facility on a series of world-wide infrastructure assets that needed to be included on the Critical Foreign Dependencies Initiative (CFDI) list.
Altlantic LNG’s facilities had been included on the CFDI list for 2008, and a request was made for updating of information on the natural gas facilities with a view to re-inclusion or removal contingent on re-assessment.
In a cable sent on February 18, 2009, Clinton said that the State Department “is surveying posts for their input on critical infrastructure and key resources within their host country which, if destroyed, disrupted or exploited, would likely have an immediate and deleterious effect on the United States.”
“We expect posts, after consultation among all sections and agencies, will in many instances recognise whether such CI/KR (critical infrastructure and key resources) exist in their host country,” she said. Clinton added, “posts are not/not being asked to consult with host governments with respect to this request.”She continued, “building upon the initial survey completed in 2008, Department requests each post reassess and update information about infrastructure and resources in each host country whose loss could immediately affect the public health, economic security and/or national and homeland security of the United States.”
Two key assets were included in the 2008 for which updated information was requested in a list sent attached to the cable. The are: the Atlantic LNG which the cable noted “provides 70 per cent of US natural gas import needs” and the Americas II undersea telecommunications cable which lands at Chaguaramas.
The Atlantic LNG comprises three separate companies owned by subsidiaries of BP plc, BG Group, Repsol YPF, GDF Suez, and The National Gas Company of Trinidad and Tobago Limited Atlantic is one of the world’s largest producers of Liquefied Natural Gas (LNG). It is a four-train natural gas liquefaction facility located at Point Fortin in Trinidad. Each train is owned by a group of private investors in its own holding company.
Atlantic LNG manages the four trains on behalf of the train holding companies. Combined, the four trains are capable of producing up to 100,000 cubic metres of LNG per day. This is enough energy to power the entire US for 1.4 months, according to the company.
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Secret information gathering? Like what? Is a KNOWN fact how essential T&T..and especially ALNG was/is to the US govt.
In any case the US dependency on us as a source of natural gas eh as it used to be due to advancing technologies.
De temptation dey for me to download dem wikileaks oui...hmmm..next ting SIA break down my door.....
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I read an article about two weeks ago saying the T&T connection to wikileaks exposure wasn't released as yet but would be forthcoming. I thought it woulda have more bacchanal than this. Obviously the US government would want to know whats going on at Atlantic LNG.
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Bourbon and JahGol I wouldn't even waste my time fretting... people in Trinidad acting tizic since this WikiLeaks thing buss, wanting to know what secret files de US have on TnT. De US eh business with Trinidad like dat and de local press only trying they best to be in thing. "Secret files"?? Please... they name get call among other names, dai'z all.
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Bourbon and JahGol I wouldn't even waste my time fretting... people in Trinidad acting tizic since this WikiLeaks thing buss, wanting to know what secret files de US have on TnT. De US eh business with Trinidad like dat and de local press only trying they best to be in thing. "Secret files"?? Please... they name get call among other names, dai'z all.
So download at will den?
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Bourbon and JahGol I wouldn't even waste my time fretting... people in Trinidad acting tizic since this WikiLeaks thing buss, wanting to know what secret files de US have on TnT. De US eh business with Trinidad like dat and de local press only trying they best to be in thing. "Secret files"?? Please... they name get call among other names, dai'z all.
So download at will den?
I cyah tell yuh what dem in TnT will do... but that material is public knowledge now. Or if yuh prefer just go to the NYT website, dem running ah series on the documents, but is only selected ones they say they publishing.
Me personally, me eh really care too much because as far as I can tell is just "sensitive" diplomatic communiques being published, the implicit purpose seemingly being to embarrass the US. TnT was never really that high on the US list diplomatically for we to be implicated.
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at d same time dis info as ............"unsecret" as it is an' as insignificant as we may well be..........ent only bein viewed by those of sound mind an' judgment.
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China to buy 10% LNG stake
Guardian 2011-08-13
The natural gas liquefaction facilities in Point Fortin.
One of Atlantic LNG’s shareholders, the French energy group GDF Suez, is in advanced exclusive talks to sell its ten per cent stake in the natural gas liquefaction facilities in Point Fortin to China’s sovereign wealth fund, China Investment Corporation, international wire services reported on Thursday. The transaction values the French company’s ten per cent stake in Atlantic LNG Train I at US$852 million. GDF Suez and CIC signed a Memorandum of Understanding on Wednesday in which they agreed that the Chinese company would purchase a 30 per cent stake in the exploration and production division of GDF Suez for US$3.26 billion.
As part of the transaction, CIC would also acquire from GDF SUEZ its ten per cent stake in the Train I of the Atlantic LNG liquefaction plant located at Point Fortin as well as production payments associated with Trains II, III and IV for an amount of US$852 million, according to the joint statement issued by the companies. Lou Jiwei, Chairman and Chief Executive Officer of China Investment Corporation, said: “We are pleased to cooperate with GDF SUEZ, a leading utility company worldwide. Our investment of 30 per cent in GDF SUEZ E&P would be our first sizeable transaction in Europe to date and, together with Atlantic LNG, one of our most important investments worldwide. We are committed to working with GDF SUEZ E&P to achieve its growth prospects.”
Gérard Mestrallet, Chairman and Chief Executive Officer of GDF Suez, said: “I am very pleased to enter into this MoU with CIC, a major investment force worldwide, which can help GDF SUEZ access substantial incremental financing resources and strong networks in China and throughout Asia. According to the Chinese news agency Xinhua, Beijing-based CIC was founded in September 2007, and is a wholly state-owned investment institution that makes long-term investments for the risk-adjusted
financial returns under the Company Law of the People's Republic of China.
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This cant be a good sign....we have to be careful...these fellas out tuh pull d mat under we feet....
China want tuh clamp down in taking resources everywhere....in Africa, Australia,Canada.....
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This cant be a good sign....we have to be careful...these fellas out tuh pull d mat under we feet....
China want tuh clamp down in taking resources everywhere....in Africa, Australia,Canada.....
i figure this move is to gain some leverage on de us and european petro markets. that LNG eh going china!
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This cant be a good sign....we have to be careful...these fellas out tuh pull d mat under we feet....
China want tuh clamp down in taking resources everywhere....in Africa, Australia,Canada.....
i figure this move is to gain some leverage on de us and european petro markets. that LNG eh going china!
ent!!...then again Ghaddafi and Saddam try dey leverage trickZ and look wha happen to dem
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Trinidad faces competition for markets like Dominican Republic.
BY JEREMY MARTIN
LNG: Competing with Trinidad
News that Houston-based Cheniere Energy had signed a liquefied natural gas, or LNG, purchase agreement with the BG Group roared across the energy world recently.
In May, Cheniere announced approval by the U.S. Department of Energy to export over 800 billion cubic feet of natural gas per year from its Gulf Coast Sabine Pass project.
But the late-October announcement of the Cheniere-BG contract turns speculation into the reality of a long-term LNG purchase agreement to move natural gas from the United States to international gas markets.
The deal further upends the U.S. natural gas world. For one, it firmly underscores the 180 degree pivot away from building dozens of LNG importation projects ringing the coast of the United States over the past decade. And it stresses that the surplus of inexpensive natural gas could enable the U.S. to become an important exporter of LNG to the global marketplace.
Two other critical points and impacts should be considered as part of the Cheniere announcement and the broader story unfolding: the implications for natural gas prices and its significance for hemispheric energy security.
Let’s take the price issue first.
For years, natural gas has had linkages to oil prices, especially in Europe. But, unlike oil, gas has not traditionally been a globally traded commodity. Historically, it was primarily moved by pipeline hence creating regional markets with fairly distinct prices across the globe.
LNG has dramatically altered that framework and set off the notion of a price convergence. But despite such prognostications, the Atlantic and Pacific Basins have remained markets with distinct prices. Natural gas sells for roughly 4 dollars per million BTU in the U.S. but as high as 16 dollars in Japan and Asia.
The shale gas revolution may be the final piece that will mark a new era that sees the U.S. as a global natural gas exporter and, perhaps most importantly, driving the natural gas price convergence long expected from LNG.
Beyond price, another key impact is Western Hemisphere energy security.
For years, Trinidad and Tobago has been the leading exporter of LNG in the region, providing the heretofore natural gas-starved U.S. market with 70 percent of its LNG imports.
LNG from Trinidad and Tobago has also been dispatched across the hemisphere to re-gasification facilities in Canada, Chile, the Dominican Republic, and Argentina. Indeed, it was Trinidadian gas delivered to Chile’s Quintero port and LNG receiving terminal in 2009 that officially marked that country’s integration into the global LNG market.
Long a natural gas exporter, Argentina has since 2004 been incapable of meetings its own natural gas demand. Indeed, LNG imports from Trinidad & Tobago in recent years have increasingly served as crucial natural gas supplies for Argentina’s tenuous and complicated energy matrix, particularly during the southern hemisphere winter.
But it is perhaps the Dominican Republic that provides the most useful discussion point. In just under ten years, Trinidadian LNG gas has come to represent one-third of the nation’s total energy matrix and is increasingly used in the transport sector. And it impact on the nation’s strapped power sector has been immense with annual power sector savings of roughly $600 million according to some accounts.
The example of the Dominican Republic and imports from Trinidad & Tobago bears mentioning for two reasons.
First is that the success of Trinidadian LNG for the nation has led to a boom in natural gas demand not entirely satisfied of late.
Secondly, and perhaps most interesting, is that the same firm at the center of the LNG export news in the U.S. also inked an MOU earlier this year to send LNG from the U.S. to the Dominican Republic. Indeed, Cheniere’s February agreement with Basic Energy to provide the power producer with natural gas supplies could serve to both further diversify the nation’s energy matrix as well as its newfound natural gas dependency.
Trinidad & Tobago, pioneers of the Western Hemisphere’s LNG market, may be suddenly faced with competition for what has long been a relatively captive market.
Trinidad and Tobago energy experts express confidence that the nature of their gas pricing contracts remain sound in the face of these emergent issues. But there are also important voices in the twin island nation calling for greater attention by the national gas industry to the potential for small LNG trades, especially in the Caribbean.
Cheniere’s LNG export deal has served to shine an increasingly intense spotlight on the question of how great and at what pace LNG exports from the U.S. will unfold.
U.S. LNG's impact and reconfiguration of the regional energy market and price is an important corollary. A new era and restructuring of where and how natural gas importing nations of the hemisphere source their supplies could be at hand.
What is unquestionable is that the widely-circulated maps of proposed U.S. LNG import facilities that made their way around the natural gas conference circuit in the early 2000’s have been completely altered.
Jeremy M. Martin is the director of the Energy Program at the Institute of the Americas at the University of California, San Diego. The institute is a nonprofit inter-American organization focused on economic development in the Western Hemisphere. Martin can be reached at jermartin@ucsd.edu.
© Copyright Latin Business Chronicle
http://latinbusinesschronicle.com/app/article.aspx?id=5237
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i heard a forecast from an american fella stating that the usa will become a net exporter of LNG over the medium term (10 years or so).
if this is true, what happens to the LNG industry in T&T? ah know is speculation but just curious what the impacts could be if this scenario plays out?
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Well from how it looking right now.....we go be basically screwed.
Actually not exactly. We have other markets. Problem is...are we able to compete with other exporters.
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Use the LNG for our cars and buses!
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Kams say they have to find new buyers
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a REAL and SUSTAINED thrust toward TRUE economic diversification is what we need ...........outsource contracting in IT and CGI might be one option but there need to be training and development of the markets...........we have good animators and artists, but there is also a lot of shit work that somehow make it onto TV screens in this country.......standards needs to improve in that department
we can also give Tourism a real try....just not sand and sea, we can't really compete there in my opinion...culture, sports and "event" tourism ...sell d "party scene" if we can.........the Smelter wasn't a good idea in my opinion but there are still many downstream opportunities for our gas resources ........all that is required is a proper well coordinated plan of action and cutting all that "half ASSing" bullshit that we proudly call Trini ting.
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Right now the US is our smallest market. We used to export 75% of our production to them but with the advent of shale gas it has come down significantly.
Our biggest market is Spain followed by Argentina, Dominican Republic and Puerto Rico als takes our gas.
Most of the contracts are long term wirth some spot deliveries. So I don't think the US as a market has such a big impact on us.
In 2015 the Panama canal expansion will be finished and this should open up a new " Horizon" for us, namely the chinese market as right now the LNG tankers are too large for the canal.
I was more worried when Qatar gas hit the market but that did not affect us, gas will always be viable because of the high cost of oil and alternatives (solar, wind) in comparison.
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You're so right left, diversification is where we need to be.
i find it hard to believe that we are not capitalizing on eco tourism, do you know how big that market is. we have some of the best nature trails in the world for hikers, and our bird sanctuary should be exploited to the max, but are these ppl even pushing for that or advertizing.
could you imagine if jamaica had a bird sanctuary or a northern range filled with wild life like we do how that would be the greatest thing since slice bread, where they would have a whole industry for drivers and tour guides, bot we real sleeping as ah ppl dread.
here's another good idea for diversification seemingly down the drain since the PNM govt was ousted.
http://www.youtube.com/v/KhBFgr6opt8&feature=related
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We are missing out on the development of asset light industries. The transformation occurring in IT today means that we are well poised to capitalize from a regional dominance and resouce perspective -- IT is now driven heavily by services/data-centric models and these can be leveraged to not only enable growth but government/national efficiency in basic human services (transport, crime, disaster recovery etc). There has been some growth in this capacity at home from what I can tell working w/UWI, but there is more we can do. Our geo positions us well to capitalize on alternative energy but here again our dependence on non-renewables, limits us. We are truly blessed, so many opportunities bypass us and overall we still survive
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fellas thanks for the insights.
fishes, thanks for the info. good to hear china could become a potential destination. hopefully europe become a little more integrated as well - ah thinking about when russia/gazprom were messing with ukraine a few years back.
do you think if there are more players (and higher volume) in global LNG usage that the current system of long-term contracts will shift to something more market-based i.e. similar to oil? that might solve the issue of finding more buyers.
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i heard a forecast from an american fella stating that the usa will become a net exporter of LNG over the medium term (10 years or so).
if this is true, what happens to the LNG industry in T&T? ah know is speculation but just curious what the impacts could be if this scenario plays out?
ribbit --- I've heard the same also, as the US mostly capped most of their gas wells in the past, and haven't really concentrated on developing it since natural gas prices were so low (right now just under US$4/MCF), and the infrastructure costs so high, that it really wasn't feasible to expand and exploit existing opportunities right here on US soil. They are indeed looking to re-engage their natural gas operations, so right now it's a wait-and-see.
Regardless, the US isn't our biggest market for LNG anyway, so it really won't impact us that much. The main impact would be if their gas hits the market, thus dramatically increasing supply world-wide, thereby again lowering the overall price of gas in the market.
However, since gas prices and crude oil prices tend to trend in opposite directions (negative price correlation), then if natural gas prices decreases, then there's a good probability that crude oil prices will increase...which of course still works for T&T's contribution to GDP via oil exports.
Of course there's much more to it, but that's just a quick lil' brief.
(Corrected a typo).
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allyuh ent know tuh keep China away with ah 10 inch pole....
Iz ah pity my country has sold out.....BUT there is still time.....dont make the mistake and give visa....tnt needs to be very cautious how dey threading water
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allyuh ent know tuh keep China away with ah 10 inch pole....
Iz ah pity my country has sold out.....BUT there is still time.....dont make the mistake and give visa....tnt needs to be very cautious how dey threading water
kams an we neighbors done say dey throwin Taiwan under d bus to prostitute we sovereignty for "development fundin" so dat ship done sail longtime :( :( >:(
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fishs, what yuh think? geezan ......
World's largest 'ship' bigger than Empire State Building launches
(http://www.telegraph.co.uk/finance/newsbysector/transport/10496977/Worlds-largest-ship-bigger-than-Empire-State-Building-launches.html)
The world's largest floating vessel is launched from a dock in South Korea
(http://i.telegraph.co.uk/multimedia/archive/02756/Prelude-ship-3_2756030b.jpg)
By Lucy Kinder
The largest floating vessel in the world has taken to the water for the first time in South Korea.
At a length of 1,601 feet, the Prelude, which is owned by Shell, is 150 feet longer than the Empire State Building is high.
(http://i.telegraph.co.uk/multimedia/archive/02756/Prelude-ship-1_2756032c.jpg)
When fully laden the ship weighs approximately 600,000 tonnes and is 243 feet wide.
It is a floating liquefied natural gas facility which will allow Shell to produce natural gas at sea and then liquify it by chilling it to -260 degrees F so it can be transported around the world.
The Prelude is expected to produce 3.6 million tonnes of liquefied natural gas per year and its storage tanks have a capacity equivalent to approximately 175 Olympic swimming pools.
The facility will be connected to wells on the seabed by a series of pipes to extract gas from under the ocean.
In August, the two halves of the hull – constructed separately in the shipyard – were joined together, creating the biggest hull ever built at 488 metres.
(http://i.telegraph.co.uk/multimedia/archive/02756/Prelude-ship-2_2756033c.jpg)
The Prelude has replaced the Emma Maersk, which measures 1,302 feet, as the world’s largest ship.
After a year of construction the facility was floated out of the dry dock at the Samsung Heavy Industries (SHI) yard in Geoje, South Korea.
It is designed to withstand a category 5 hurricane and can be moored at sea during the most powerful cyclones with one of the largest mooring systems in the world.
A 93-metre (305-foot) high turret, spacious enough to house the Arc de Triomphe, will run through the facility and allow it to turn in the direction of the wind, absorbing the impact of strong weather conditions.
The ship also has three 6,700-horsepower engines.
The Prelude is expected to launch in 2017 and will then operate in a remote part of Western Australia for the next 25 years, however Shell hopes that it will help to unlock vital energy resources around the world.
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The last sentence mentions 'Australia' ... just read the following:
BHP Billiton Ltd. (BHP), Australia’s largest oil and gas producer, is studying expansion in Trinidad and Tobago, nominating the Caribbean nation as a potential third main production region along with the U.S. and Australia.
“We’re very excited about Trinidad,” Tim Cutt, president of BHP’s petroleum and potash unit, told reporters today on a call. “It’s a deep-water play we’ve been watching for some time, but the fiscal terms weren’t very consistent with our ability to make money. The terms now are satisfactory.”
BHP’s oil and gas unit, which generated about a third of its earnings last fiscal year, is planning to drill its first well in Trinidad and Tobago in 2016, Cutt said. While focusing investment on the U.S. and Australia, the Melbourne-based company flagged further sales of assets, including shale fields in Texas, to simplify its energy portfolio.
BHP, the world’s largest mining company, fell 1.7 percent to A$36.18, while Australia’s benchmark S&P/ASX 200 Index dropped 0.8 percent.
http://www.bloomberg.com/news/2013-12-11/bhp-looks-at-expansion-in-trinidad-and-tobago-amid-asset-sales.html
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Very interesting - I'm surprised it's coming around here as a ship that big won't be able to navigate the Panama Canal
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Argentina buys US$1 billion in LNG from T&T.
T&T Guardian Reports.
Argentina purchased more than US$1 billion in liquified natural gas (LNG) from T&T over the past year, Argentine Ambassador Marcelo Salviolo said yesterday. “In the economic area there has been the impact of T&T'S liquified natural gas and this continues to increase year after year,” he said.
“Argentina also continues to sell wines to T&T, concentrated juice, among other products. Over the last 12 months there has been a growth in multi-lateral affairs as both countries have supported each other at international forums. Argentina has given supported to T&T on the Arms Trade treaty. Also there has been co-operation on the Community of Caribbean and Latin American States (Celac).”
Salviolo, who spoke at a reception in celebration of Argentina’s National Day at the Hyatt Regency in Port-of-Spain, said T&T and Argentina are celebrating 50 years of diplomatic relations this year and the relationship between the two countries is an example of south-south co-operation. “October 1 marks a diplomatic friendship between our two countries which continue to grow closer through our partnerships,” Salviolo said.
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Maybe we could get Arg to plays at HC in the future.
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That'd be good, great to also branch out and server non-US markets in teh current climate
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Seems a while back, US was supposed to be a market for T&T LNG.
How exposed is T&T to US becoming an exporter of LNG?
http://www.cnbc.com/2016/02/24/in-a-first-cheniere-to-export-us-liquefied-natural-gas.html
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Seems a while back, US was supposed to be a market for T&T LNG.
How exposed is T&T to US becoming an exporter of LNG?
http://www.cnbc.com/2016/02/24/in-a-first-cheniere-to-export-us-liquefied-natural-gas.html
well we've got the edge over them in terms of experience, track record, market savvy etc....under all d bruhaha america's LNG still in the fledgling stages...we still export LNG to them...very small amounts relative to elsewhere....and its just to cool their LNG plants
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Repsol offers $US.5m for NGC platforms.
By Rhondor Dowlat (Guardian).
Spanish energy giant Repsol E&P T&T Limited has offered a US$.5 million bid for two of the National Gas Company (NGC) of T&T Limited’s offshore fields, as the company seeks to offload assets with the energy sector continuing to struggle due to low prices on the international markets.
The two companies are expected to sign off on a deal at the end of this month which would see Repsol purchasing NGC’s platform in the Teak and Poui fields for US$.25 million each—a total purchase of US$.5 million, or approximately TT$3 million.
However, contacted for an immediate comment on the deal yesterday, Prime Minister Dr Keith Rowley declined, saying: “No, I am sorry, I am not briefed on that matter at this time.”
Also contacted yesterday, former minister of energy Kevin Ramnarine said he also did not know of such a deal when he was in office, although the initial contact between the companies took place under the People’s Partnership government.
According to a document obtained by the T&T Guardian, by letter dated April 22, 2015, Repsol submitted a proposal to NGC for the purchase of assets after learning of its intention to feel them off. Repsol followed this up with a letter outlining its condition for the sale of the assets on May 26, 2015 and both parties executed a confidentiality agreement on September 16, 2015, in order to facilitate an evaluation by Repsol relating to the integrity if the assets.
By letter dated September 25, 2015, Repsol requested permission to conduct a due diligence exercise relating to the proposed acquisition.
A Heads of Terms agreement was entered on December 30, 2015 and will remain in effect until March 31, 2016. This document was signed for and on behalf of NGC’s acting president Maria Thorne and Repsol’s business adviser Allan Russell on December 30, 2015.
According to the document received by the T&T Guardian, NGC had been providing Repsol with gas lift compression services from the two platforms in the Teak and Poui offshore fields pursuant to the Third Amendment to the Teak Compression Services Agreement and the Poui Compression Services Agreement,dated July 21, 2015.
But when the arrangement ended on December 31, NGC moved to get rid of the platforms and related equipment, including compression gear, all specialised test equipment, tools, hardware and related software.
The T&T Guardian understands that both parties agreed to a purchase price of US$.25 million (approximately TT$1.7 million) a platform, including all equipment, and, in accordance with the terms and conditions of sale, will sign off on the purchases and wrap up the deal on April 1, 2016.
Until the purchase is completed, NGC agreed to operate their platform subject to Repsol’s approval and limit the number of offshore personnel used in those operations.
Under the agreement, Repsol is also not guaranteeing that there will be no job cuts.
“Repsol shall have the right but not the obligation to choose from the list of NGC offshore personnel for possible contracting purposes. Additionally, Repsol has no obligation to retain any of the NGC existing personnel associated with the operation and maintenance of the asset,” the Heads of Terms stated.
Contacted for comment yesterday, Repsol’s business adviser and assets manager, Allan Russell, said the topic was too sensitive in nature to give an official comment.
Minister of Energy Nicole Olivierre also did not want to say much when contacted. However, she noted that compression of low pressure gas is an important part of the country’s oil operations and ensuring the service is provided and continued was “important to both parties.”
Asked if NGC was selling the platforms because it was cash strapped and why to Repsol, Olivierre replied: “I would not really say that NGC is cash-strapped, but that NGC is… well you know, I really don’t want to comment further on this.”
Olivierre then ended the call. NGC acting president Maria Thorne asked that questions be sent to her via her email but up to last night she had not responded.
Conditions of NGC/Repsol Sale
7.4 In order to achieve a smooth and efficient transfer of the assets, during the interim period NGC shall designate two of its land-based personnel to provide planning and logistical support as may be required by Repsol.
7.5 Repsol shall have the right to conduct a due diligence, including but not limited to financial, commercial and legal records related to the compression business of NGC.
7.6 (a) Repsol shall have the right but not the obligation to continue with any of NGC’s existing contracts related to compression operations in the Teak and Poui offshore fields. As and from the January 1 2016.
Repsol shall have absolute discretion to restrict or cancel the rendering of any planned or existing contracts or services of NGC and use its own contracts for the execution of any works related to compression operations.
(b) Where a Repsol contractor is required to execute works related to compression operations on the assets in accordance with this sub-clause 7.6, Repsol shall:
(i) Indemnify and hold NGC harmless from and against any loss, liability (including reasonable legal expenses) or damage to any person or property whatsoever where such loss, liability or damage is caused by, results from or arises out of the performance of such works save and except to the extent of NGC’s negligence or wilful misconduct;
(ii) indemnify and hold NGC harmless from and against all claims, suits, actions and demands for any loss, injury, damage or liability (including reasonable legal fees and expenses) to any person or property whatsoever caused by, resulting from or arising out of the performance of the works save and except to the extent of the negligence or willful misconduct of NGC.
7.7 Repsol shall have the right to purchase any spares contained in NGC’s warehouse at a price to be agreed between the parties.
7.8 The parties shall use reasonable endeavors to negotiate an agreement to facilitate the supply of high pressure gas lift compression services in the Teak, Samaan and Poui offshore fields.
7.9 Repsol shall handle all operational emergencies on the NGC gas transmission system located on the assets as requested by NGC subject to the execution by the parties of an indemnity agreement. NGC shall provide suitable training to Repsol on procedures for the safe opening and/or closing of the valves on the NGC gas transmission system.
7.10 NGC shall provide to Repsol all available technical and operational information required for the safe and efficient operation of the assets.
7.11 Subject to the competition of the due diligence referred to in Clause 3 above, decommissioning liabilities will be transferred to the TSP owners upon signing of the SPA.
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Khan: T&T gets US $80m bonus from Shell contracts
BY JULIEN NEAVES (NEWSDAY).
ENERGY Minister Franklin Khan said the ministry received a signature bonus of US $80 million on signing new production sharing contracts (PSCs) with Shell.
He was responding to a question in the Senate Wednesday on the energy agreement between Shell TT and the Government.
Khan said the agreement covers Shell’s production-sharing contracts for its East Coast Marine Area (ECMA) comprising Block 5a, Block 6, Block E and Block 5c and in the North Coast Marine Area (NCMA) 2, its Colibri project comprising NCMA 4 and Block 22. He reported the commercial terms of the LNG marketing arrangements for gas from these blocks were improved and the terms of the ECMA PSCs Block 5a, Block 6 and Block E have been extended to 2030 and NCMA 1 to 2035.
“The quantum of the enhanced revenue accruing to Government will be dependent on the global market for LNG and will be realised over the period 2019 to 2022.”
He explained the pricing regime for LNG will be based on one-third Brent, one-third JKM and one-third NBP, which is superior to existing regimes that is Henry Hub and the Spanish market, and therefore will be an improved return to Government. Khan reported that Shell is projected to spend in excess of US $1 billion in development works over the period 2019-2021.
“These works are geared to maintain production in its ECMA blocks and NCMA 1, and in bringing on stream new production from its Colibri project and Block 5c.” He said first gas from Block 5c is projected for 2021 and from the Colibri project in 2022.
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PPGPL acquires US company.
T&T Guardian Reports.
Phoenix Park Gas Processors Ltd (PPGPL) through its wholly owned US subsidiary, Phoenix Park Energy Marketing LLC has acquired the NGL marketing assets of Twin Eagle Liquids Marketing LLC.
Twin Eagle Liquids Marketing LLC is a company based in Houston, Texas, USA and is engaged in the business of marketing, trading and transportation of natural gas liquids in Canada, USA and Mexico via rail, the company explained in a statement yesterday.
According to President Dominic Rampersad, “Through this acquisition, we will broaden our business platform and deliver more value to our shareholders and customers as we enhance our competitiveness in the global marketplace.”
PPGPL, the only natural gas liquids (NGLs) hub in the region, is involved in natural gas processing, fractionating, aggregation and NGLs marketing. Its new business unit, Phoenix Park Energy Marketing LLC will be focused on the marketing of NGLs in North America.
The company noted that this latest development is aligned to its strategy to grow the business internationally along the energy value chain.
“It is in fact the company’s first major step towards realising its vision to be a recognised global leader in the development of energy related businesses,” the company said.
PPGPL noted that over the past three years it has taken very deliberate steps to realise this vision, including expanding its revenue streams to include condensate processing and physical product trading.
“With this acquisition, PPGPL has now added a new source of revenue to its existing portfolio thereby further diversifying its business and providing a focal point for an expansion thrust in the North American natural gas market,” the company noted.
It also said that expansion of PPGPL into the US midstream energy market spells good news for its shareholders, especially TTNGL, which is traded on the Trinidad and Tobago stock exchange.
“The company’s bold step outside Trinidad and Tobago comes at a time when the North American industry is expanding at a rapid rate,” the company added.
PPGPL’s president further states, “This is a new chapter for the company and its shareholders as we open new doors and export our expertise, while establishing a presence in other territories. Our people are committed to our vision and to realising improved returns to shareholders, and added value for the NGC Group of Companies and the people of Trinidad and Tobago.”
PPGPL will continue to be focused on gas processing and water borne NGLs trading regionally and internationally, while its new subsidiary Phoenix Park Energy Marketing LLC will be engaged in the business of marketing, trading and transportation of natural gas liquids via rail in Canada, USA and Mexico, as they have done previously.