Several
new energy complexes on TT's horizon
By
Sherwin Long
Trinidad Guardian
Port Spain
Petroleumworldtt.com.
06 11 06
The
question of how T&T can maximise its use of
natural gas and add value to this treasured hydrocarbon
resource has been often asked.
Dr
Vernon Paltoo, the National Energy Corporation’s
team leader for business development, attempted
to answer these questions last week.
During
the first international Tobago Gas Technology Conference
held at Hilton Tobago last week, Paltoo listed a
proposed polyethylene estate and three urea ammonia
nitrate plants as Government’s current petrochemical
priorities.
For
Paltoo, the balance between going further downstream
into petrochemicals and using most of our natural
gas for liquefied natural gas (LNG) production has
to be scrutinised.
He
used examples from current natural gas usage from
both methanol and liquefied natural gas producers.
“The
Atlas and M5000 (methanol) plants use about 160
million cubic feet per day. On the other hand Atlantic
LNG Train IV uses 800 million cubic foot a day,”
Paltoo said.
“It
is a lot more gas for an LNG plant as opposed to
a methanol plant which is why we have to be very
careful in terms of our LNG expansion.”
He
admitted that LNG brings in most of the country’s
revenue but T&T has to counterbalance earning
revenue and development of the country’s downstream
industries.
Given
concerns over T&T’s natural gas reserves,
he said the amount of natural gas needed for the
projects was being seriously monitored.
“We
do all these projects with careful consideration
of natural gas reserves and we ensure all of these
projects can be facilitated within our current,
existing reserves and targeted production rates,”
he said.
According
to a 2005 Ryder Scott audit, T&T currently has
18 trillion cubic feet of proven natural gas reserves.
However,
Paltoo quoted 35 trillion cubic feet as the reserves.
But
he was basing reserves on probable and possible
gas reserves, not proven reserves.
With
T&T currently the number one exporter of both
methanol and ammonia world-wide, Paltoo was quick
to note that the country had the least natural gas
reserves of the top ten ammonia exporters.
T&T
ranks higher than only Chile and Equatorial Guinea
in natural gas reserves among the top ten exporters
of methanol, he said.
Paltoo
added that the world’s capacity for both methanol
and ammonia up to 2010 was rising but the demand
was significantly lower.
“Expansion
in additional methanol and ammonia could adversely
affect our position as a key player by further saturating
the market,” he said.
In
place of methanol and ammonia, he positioned other
petrochemical derivatives as being economically
viable for T&T.
In
addition to polyethylene and urea and ammonia, he
said polypropylene, acetic acid and melamine were
other petrochemicals which will have optimum value
for T&T.
Other
downstream prospects under development include a
methanol to polypropylene complex, a maleic anhydride
derivative complex and an ethane-based polyethylene
complex.
Paltoo
noted that these industries would be housed at either
the Point Lisas Industrial Estate or at the Union
Industrial Estate.
Polyethylene
demand is expected to increase by seven per cent
every year until 2010, Paltoo estimated, while polypropylene
demand is set to grow at a rate of eight per cent
every year until 2010.
He
added that the manufacture of finished products
derived from polyethylene was labour intensive and
could hire up to 500 or more workers.
“If
we produce methanol alone then that one trench of
natural gas is being converted to methanol. But
if we take that methanol and develop more products
then that same original trench of gas has significant
value added to it so we get more revenue,”
he said.
Polyethylene
can be used to create pipes, containers, appliance
parts and even bottle crates.
The
plan is to have a conceptual T&T polyolefin
complex with two mega-methanol plants and an ethane
cracker all supplying polypropylene and polyethylene
manufacturing facilities, Paltoo said.
The
ethane for the polyethylene facility will be from
the NGC’s domestic supply and Atlantic LNG
(trains I to IV) which will provide a combined 52,000
barrels of ethane. This could supply an ethane cracker
with 800,000 tonnes per year, he said though admitting
this was an idealistic scenario view.
He
said based on Government’s “strategic
intention” they would consider whether to
finance these projects alone or as a joint venture
with an established multi-national company.
Trinidad
Guardian
Thursday
1st June 2006
Copyright
©2006 Trinidad Guardian All Rights Reserved.
