Natural gas supplies in Trinidad and Tobago are in excess of demand to service the country's domestic industrial sector.
And this situation of supply surpassing demand may last for years.
This was the view yesterday of Derek Hudson, president of BG Trinidad and Tobago, the country's second largest gas producer.
"BG's view at present is that this situation is not a near-term one and may last for at least another five to six years," he said.
Hudson was speaking at the BG Trinidad and Tobago Energy Luncheon Series held at the Hyatt Regency Hotel in Port of Spain.
He commended the Ministry of Energy for the introduction of fiscal amendments to spur exploration activity for oil and gas in the country.
But he said it was important to note that a clear monetisation policy for un-contracted and yet-to-be-found reserves was also required in gas-based provinces to operate in parallel with the fiscal amendments.
Larry Howai, chief executive at State bank First Citizens, which partnered with BG Trinidad and Tobago to host the luncheon, said the average price used in the national budget seemed "reasonable and may be conservative".
Finance Minister Karen Nunez-Tesheira on Monday said the budget was based on an oil price of US$55 and gas price of US$2.75.
"Only time will tell," if the gas price was reasonable, Howai said. "If it turns out to be wrong, as a nation, we simply make the required adjustments and continue to move forward."
