Trinidad Eyes Production Growth and Bid Rounds

Higher gas production could spur an increase in exports, however, higher LNG exports aren’t likely to flow just yet from Trinidad until a decision is taken regarding the restructuring of the Atlantic LNG complex.

Trinidad Eyes Production Growth and Bid Rounds

Trinidad’s gas production will get a lift in the second half of the year from developments to come online including De Novo’s Zandolie project, EOG Resources’ Osprey East and West project, and bpTT’s Cassia Compression project among others. Pictured is a high-capacity seismic vessel owned by PGS in the Port of Spain, Trinidad. (Source: Chris worldwide / Shutterstock.com)

Caribbean producer Trinidad and Tobago looks to boast double-digit production growth by 2024 for both natural gas and crude oil as numerous developments come on stream. However, gains on the gas side, which are crucial to the twin-island nation’s gas-dependent economy, will still fall short of highs seen in 2010.

At the moment, Trinidad continues to suffer from a scarcity of gas caused in part due to unattractive fiscal terms as well as other headwinds confronting the spending habits of international oil companies active in the country. The lack of gas has negatively impacted the country’s gas-dependent industries from LNG to ammonia and methanol with numerous plant closures revealed in recent years.

Trinidad already exports LNG, ammonia and methanol to Europe, Asia and other countries and is riding the wave of higher commodity prices. Higher gas production could spur an increase in exports to these markets, among others it already serves. Trinidad is home to one of only two LNG exporting facilities in Latin America, the other being in Peru, which now competes with the U.S. for LNG market share.

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Pietro Pitts

Pietro Donatello Pitts is a senior energy reporter for Hart Energy. He covers Latin America and the Caribbean as well as regions from North America to Europe, Africa and Asia. He covers topics spanning from the upstream, midstream and downstream sectors to the energy transition and geopolitical events impacting the global energy sector.