NGC welcomes new gas supply
By Curtis Williams
The Trinidad Guardian
Port
Spain
Petroleumworldtt.com
01 07 07
Thursday’s
announcement of a deal between the National Gas
Company and BG Group for the supply of 220 million
standard cubic feet per day (mmcf/d) of natural
gas will not hasten the signing of gas contracts
for several approved downstream projects.
President
of the National Gas Company (NGC) Frank Look Kin
told the Guardian that the NGC always had a supply
of gas for the approved projects and the announced
tranche of gas simply meant that the NGC had a new
supply to sell to potential customers.
Look
Kin said, “I don’t know why people have
been saying that we did not have gas for the projects.
The NGC never said we didn’t have the gas.
This is simply an additional supply.”
Several
companies including India’s Essar Steel have
not finalised gas agreements with the NGC and there
has been speculation that the gas has simply not
been available.
Following
months of negotiations the NGC and BG Group reached
an agreement for the supply of 220 mmcf/d into the
country’s domestic supply.
The
gas deal is for a term of up to 15 years with the
first deliveries beginning on January 1, 2009.
Look
Kin said the NGC was always confident that it would
get the additional supplies of gas but he was not
willing to discuss the price the company will have
to pay BG for the new supply.
Look
Kin said the 15 year contract was in keeping with
other contracts negotiated in the past .
Meanwhile
BG revealed that the gas will be coming from its
Dolphin field.
A
company spokesman said the additional 1.2 trillion
cubic feet of gas in Dolphin was identified following
an update of the reserve position.
The
official explained, “From time to time we
do updates of the reserve position and a couple
of years ago we realised that our reserve position
was better than in the past and now we have 1.2
tcf of uncommitted gas to sell.”
The
Trinidad Guardian
Saturday 6th January, 2007
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©2006 Trinidad Guardian. All Rights Reserved.
