BG
Group signs heads of agreement for domestic gas
sales in Trinidad and Tobago
Petroleumworld
Trinidad
Port Spain
Petroleumworldtt.com
01 07 07
BG
Group plc, and its partner Chevron, today announced
that they have entered into Heads of Agreement (HoA)
with The National Gas Company of Trinidad and Tobago
Limited (NGC) for the supply of 220 million standard
cubic feet of natural gas per day (mmscf/d) for
a term of up to 15 years with initial deliveries
beginning on 1 January 2009.
The
gas will be delivered to NGC for use in the Trinidad
and Tobago domestic natural gas market. A fully
termed gas sales agreement is expected to be finalised
in 2007.
Martin
Houston, BG Executive Vice President and Managing
Director, North America, Caribbean and Global LNG,
said:
"The
proposed agreement underpins the commercialization
of 1.2 trillion cubic feet of currently undeveloped
gas in the East Coast Marine Area. This is an excellent
project and BG Group is delighted to have reached
this agreement with NGC. We are a long-term partner
in the country and a key contributor to the domestic
gas supply market. We remain committed to our extensive
exploration and production activity in the East
and North Coast Marine Areas as well as the onshore
Central Block and will continue to work closely
with the Government to promote further expansion
and recovery of Trinidad & Tobago’s natural
gas resources."
BG
Group plc is a global natural gas business. Active
on five continents in over 25 countries, it operates
four business segments – Exploration and Production,
LNG, Transmission and Distribution and Power.
BG
Group has been operating in Trinidad & Tobago
since 1989, and continues to reinforce its position
as a major gas player in the country. BG Group currently
supplies natural gas to the domestic market and
to Atlantic LNG primarily for export to North America.
East
Coast Marine Area (ECMA)
The
BG Group operated ECMA contains four natural gas
fields: Dolphin, Dolphin Deep, Starfish and Manatee.
The Dolphin field began production in March 1996
and supplies 275 mmscf/d of natural gas to NGC under
a 20 year supply agreement. The Dolphin Deep field
began production in August 2006 and supplies 80
- 100 mmscf/d to Atlantic LNG (ALNG) Train 3 and
120 mmscf/d to ALNG Train 4. The Starfish field
will be developed to fulfil the ALNG Train 3 and
Train 4 contracts when Dolphin Deep goes into decline.
The Manatee field was discovered in January 2005
by BG Group and partner Chevron and is part of a
cross border accumulation that stretches into neighbouring
Venezuela. The Manatee-1 well indicated gross reserves
of between 1.3 and 1.6 trillion cubic feet of gas
on the Trinidadian side of the border. Monetisation
options for this gas are being reviewed.
BG
and Chevron are currently evaluating future exploration
drilling plans within the ECMA.
North
Coast Marine Area (NCMA)
The
BG Group operated NCMA is located 40 kilometres
off the north coast of Trinidad. NCMA includes four
gas fields: Hibiscus, Poinsettia, Chaconia and Ixora.
These fields are being used to supply natural gas
to Atlantic LNG Trains 2, 3 and 4. NCMA is contracted
to supply 240 mmscf/d of natural gas to ALNG Train
2 for 20 years and also supplies 125 mmscf/d of
gas, for the first two years of its operation, to
ALNG Train 3; this volume reduces to 45 mmscf/d
thereafter.
Central
Block
BG
Group owns 65% interest in this field and is also
the operator, with the remaining 35% interest being
owned by the state-owned company Petrotrin. BG Group
supplies 20 mmscf/d of natural gas and 500 barrels
per day of liquids to Petrotrin.
Atlantic
LNG
The
Atlantic LNG Company of Trinidad & Tobago, in
which BG Group is a shareholder, was established
in 1995 to liquefy natural gas for export. The company
operates the four LNG Trains in operation at Port
Fortin.
ALNG
Train 1, which came into operation in April 1999,
produces 3.1 mpta (BG Group – 26% shareholder).
Trains 2 and 3, which became operational in August
2002 and April 2003 respectively, produce an average
of 6.7 mpta (BG Group – 32.5% shareholder).
Train 4 (BG Group – 28.89%), is a fully integrated
project for BG Group, involving the production and
liquefaction of gas in Trinidad & Tobago, the
shipping of LNG to Lake Charles and the subsequent
regasification for onward sale into the US market.
For
more info on Atlantic LNG Company – www.atlanticlng.com
Petroleumworld
Trinidad
Sunday, January 6 2007
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