The restructuring of the shareholder profile for Trinidad and Tobago’s four-train, 14.8 million tonnes per annum (mtpa) Atlantic LNG facility isn’t expected until late 2024, according to BP Plc.
The restructuring is key but will not solve Trinidad’s underlying problem: a lack of gas supply.
“The new structure is expected to be effective in October 2024 and will enable increased focus on operational efficiency and reliability and underpin future upstream investments,” the British oil giant announced Feb. 7 in a press release related to its quarterly conference call and webcast.
Negotiations between shareholders in Atlantic LNG’s four trains, especially BP Plc and Shell Plc, have been ongoing for a number of years.
Late last year, Atlantic LNG shareholders reached an agreement on substantial commercial terms for the consolidation of its operation into a single entity, Trinidad's Ministry of Energy and Energy Industries (MEEI) announced on Dec. 8.
The agreement “is a key milestone towards unlocking the energy future for Trinidad and Tobago,” BP said.
RELATED
Atlantic LNG Partners Ink Deal to Unitize Plant
Partners in Atlantic LNG include Shell, BP, The National Gas Company of Trinidad and Tobago Ltd. (NGC) and Chinese Investment Corp. in Train 1; Shell and BP in Train 2 and Train 3; and Shell, BP and NGC in Train 4.
On an operational front, Atlantic LNG continues to operate with just three trains, owing to a scarcity of gas supply. Production at Train 1 has been halted since Dec. 2020, according to the most recent data from the MEEI.
Over the near-term, a number of gas developments in Trinidad are expected to add to the country’s existing gas production profile. Production reached 2,844 MMcf/d in September 2022 but is down from a peak of 4,515 MMcf/d in February 2010, according to MEEI data.
Additionally, plans to tap into Venezuelan gas production from that country’s Dragon field could also add to Trinidad gas supply profile.
But the Dragon gas is tied to geopolitical issues between the U.S. and Venezuela and could fall apart if the two parties differ on anything related to “free and fair” elections in Venezuela in 2024, which the U.S. believes could lead to a resolution of the country’s long-standing political uncertainties.
Recommended Reading
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.