Restructuring close for Trinidad LNG producer
Trinidad and Tobago and majors Shell and BP are close to concluding the restructuring of the Atlantic consortium's LNG facility to increase the government's share, prime minister Keith Rowley said.
"It is expected that when the terms are finally agreed, Trinidad and Tobago will derive significant benefits in shareholding and pricing," Rowley said after recent meetings in Europe with principals of Shell and BP.
Neither the government nor the companies have indicated a target date for concluding the restructuring talks that started in 2018 and which Rowley's office said "are expected to be finalized soon."
Shell holds an average 53pc interest in the four-train 14.8mn t/yr liquefaction facility located at Point Fortin in southwest Trinidad. BP holds an average 39.2pc stake.
Trinidad's state-owned gas company NGC has a 10pc interest in Train 1 and 11.11pc in Train 4. China's sovereign wealth fund CIC unit Summer Soca owns 10pc of Train 1.
The disparate ownership structure of each of Atlantic's trains has complicated feedstock allocation since domestic natural gas production started falling just over a decade ago.
"The negotiations on the restructuring of Atlantic are ongoing, and we will continue to work with the government and Atlantic shareholders to ensure that both the shareholders and Trinidad and Tobago will derive significant benefit from the new commercial structure and enable future upstream developments," Shell told Argus this week.
BP "cannot offer anything further on the Atlantic talks at this time," the company told Argus, referring to a January 2022 statement that shareholders and the government had reached an initial agreement for restructuring the facility.
Trinidad's gas flow had been recovering since November 2017 following a long slide from a peak of 4.3 Bcf/d in 2010 that suppressed output of LNG, petrochemicals and fertilizers.
The expansion slowed in early 2020 when the Covid-19 pandemic prompted restrictions.
LNG output of 15.29mn m³ in 2021 was 36pc down from 2020, reflecting a 15pc fall in gas production.
The restructuring talks will "clarify" the future of Atlantic's oldest liquefaction unit — Train 1 — that has 25pc of the consortium's capacity and which was mothballed in January 2021 because of a shortage of feedstock, the energy ministry told Argus today.
"We are not in a position to comment on Train 1 as our focus is on the restructuring exercise at the moment," Shell said.
Related news posts
TotalEnergies to fully own Malaysian gas firm SapuraOMV
TotalEnergies to fully own Malaysian gas firm SapuraOMV
Singapore, 23 April (Argus) — TotalEnergies has signed an agreement to acquire Sapura Upstream Assets' 50pc stake in Malaysian private gas producer and operator SapuraOMV, which will take TotalEnergies' total stake to 100pc. The acquisition will cost $530mn, subject to closing adjustments, with closing expected to take place in the second half of this year, said TotalEnergies. This latest deal follows a previous agreement that TotalEnergies signed in January with Austrian firm OMV to acquire its 50pc interest in SapuraOMV. This means TotalEnergies will own 100pc of SapuraOMV once both transactions are completed. "Following the transaction with OMV announced two months ago and this new transaction with Sapura Upstream Assets, TotalEnergies will have full ownership of SapuraOMV and become a significant gas operator in Malaysia," said TotalEnergies' chairman and chief executive officer Patrick Pouyanné. "The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets," he added. SapuraOMV in 2023 produced 500mn ft³ of gas, which was used to feed the Bintulu LNG plant operated by state-controlled Petronas, as well as 7,000 b/d of condensates. SapuraOMV holds 40pc and 30pc operating interests, respectively, in blocks SK408 and SK310, which are offshore Sarawak, Malaysia. Block SK408's Jerun gas field, which could hold up to 84.9bn m³, is on track to start up in the second half of this year. SapuraOMV also has interests in exploration licences in Malaysia, Australia, New Zealand, and Mexico, where there was a discovery on block 30 last year, with estimated resources of 200mn-300mn bl of oil equivalent. TotalEnergies holds interests in two production sharing contracts in Malaysia. It in June last year signed an agreement with Petronas and Japanese trading firm Mitsui to jointly develop a carbon capture and storage project in Malaysia as well as assess maturing depleted fields and saline aquifers for storage. The firms hope to develop a CO2 merchant storage service to help industrial customers in Asia decarbonise. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Tamboran agrees NT gas sales deal
Australia’s Tamboran agrees NT gas sales deal
Sydney, 23 April (Argus) — Australian independent Tamboran Resources has signed a long-term gas sales agreement with the Northern Territory (NT) government for supplies from the Beetaloo joint venture's (BJV) proposed Shenandoah South pilot project. The binding deal for 40 TJ/d (1.07mn m³/d) on a take-or-pay basis from Shenandoah South in the onshore Beetaloo sub-basin of the NT equates to a total 131.4PJ (3.5bn m³) and begins in January-June 2026, running for nine years with an option to extend 6½ further years to 2042, Tamboran said on 23 April. This represent about two-thirds of the NT's present gas requirements and is conditional on the BJV entering a binding transportation agreement with pipeline operator APA for the planned 35km Sturt Plateau Pipeline , as well as reaching a final investment decision (FID) for Shenandoah South. Tamboran has a working interest of 47.5pc in Shenandoah South, which is aiming for a FID mid-year, following Canadian independent Falcon Oil and Gas' decision to reduce its participation from 22.5pc to 5pc in March to reduce its cost exposure to the project. BJV is operated by Tamboran, which holds a 50:50 interest in the Tamboran B2 joint venture with privately-held Daly Waters Energy controlled by US billionaire Bryan Sheffield. The BJV also holds a 10-year, 36.5 PJ offtake deal with Australian utility Origin Energy signed in 2022. The NT is dependent on gas-fired power generation. Continuing supply problems at Italian oil firm Eni's offshore Blacktip field has it currently sourcing gas from Australian independent Santos' depleting Bayu-Undan field in the Timor Sea and the onshore Mereenie joint venture . Tamboran is aiming in the long term to develop its proposed 6.6mn t/yr Northern Territory LNG project , for which it is aiming to complete initial engineering this year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Balticconnector gas pipe recommissioned after rupture
Balticconnector gas pipe recommissioned after rupture
London, 22 April (Argus) — The Finland-Estonia Balticconnector gas pipeline has been re-commissioned, with commercial flows starting at the beginning of today's gas day. There were renominations for 12.5GWh of flows towards Finland and 78.2GWh in the opposite direction for today as of early afternoon, suggesting net flows towards Estonia of around 66GWh. Finnish demand remains relatively low, while stocks at Finland's Inkoo LNG terminal need to be mostly depleted before the upcoming arrival of a new cargo on 26 April. The Balticconnector was taken off line on 8 October following a rupture caused by a dragging anchor . The system operators of Finland and Estonia said at the time that the pipeline could return in April at the earliest, meaning the initial timeline set out for repairs has been met. The recommissioning of the Balticconnector could allow Finnish prices to realign with those in the Baltic markets now that the two areas are connected again. During the Balticconnector's absence, Finland was entirely reliant on LNG deliveries to Inkoo, meaning prices were highly volatile and frequently held significantly above prices further south. Price differentials reached a peak of nearly €58/MWh ($62/MWh) in mid-January as a cold snap caused Finnish power-sector gas demand to soar while stocks at Inkoo were relatively low. That said, the basis between the two markets has narrowed significantly since mid-March, and the Finnish price has on several days held lower than in the Baltics ( see graph ). By Brendan A'Hearn Finnish vs Estonian-Latvian prices Oct 2023-present €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TotalEnergies takes FID for Oman's Marsa LNG
TotalEnergies takes FID for Oman's Marsa LNG
Dubai, 22 April (Argus) — TotalEnergies has taken a final investment decision (FID) for the integrated Marsa LNG bunkering project it is carrying out in Oman with state oil company OQ. The project involves the production of 150mn ft³/d (1.55bn m³/yr) of gas from Oman's onshore block 10, the liquefaction of that gas at a new 1mn t/yr capacity plant to be built at the port of Sohar on Oman's north coast, and the construction of a 300MW solar generation facility that will power the plant. The ambition of the project is to serve as the first LNG bunkering hub in the Mideast Gulf region, showcasing "an available and competitive alternative marine fuel" to reduce emissions coming from the shipping industry. TotalEnergies said today that it expects to begin producing LNG by the first quarter of 2028. That LNG is "primarily intended to serve the marine fuel market in the Gulf", the company said, but all LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ. "We are proud to open a new chapter in our history in the sultanate of Oman with the launch of the Marsa LNG project, together with OQ," TotalEnergies chief executive Patrick Pouyanne said. TotalEnergies holds a majority 80pc stake in the joint venture, with OQ holding the remaining 20pc. "We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the sultanate on a new scale in the sustainable development of its energy resources," Pouyanne said. TotalEnergies, Shell and OQ formalised an agreement to develop the gas resources in Oman's block 10 in late 2021 . The consortium began producing gas from the Mabrouk North East field in block 10 in January 2023. At the time, the companies said they expected to reach plateau production of 500mn ft³/d by the middle of 2024. But TotalEnergies today said the consortium had already reached plateau this month. As part of the original agreement, Marsa LNG was due to deliver production from the block to the government for 18 years, or until the end of 2039. But the decision by TotalEnergies and OQ to take FID has triggered an extension of Marsa LNG's rights to block 10 until 2050. The planned 300MW photovoltaic solar plant should cover 100pc of the LNG plant's annual power consumption, which will help "significantly" reduce greenhouse gases. "By paving the way for making the next generation of very low-emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy," Pouyanne said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more