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Foreign gas finds may affect T&T markets
A recent analysis in Petroleum Export suggests that T&T’s economic security could be under threat from one of its major export markets. According to writer Justin Jacobs, the country could suffer more than most other energy producers with the rise of shale output by the United States.
Jacob writes that the surge in US shale-gas production, a wave of new liquefied natural gas (LNG) export projects around the world and major gas discoveries offshore east Africa and elsewhere have ushered in a new era for the gas sector, which he suggests threatens to undermine the security of T&T’s markets.
“While it has adapted in the short term, to secure its place in the new-look global gas market, T&T must develop a new, long-term strategy,” Jacobs reports. “T&T’s economy is powered by natural gas. The industry accounts for about half the country’s GDP, generates nearly two-thirds of the government’s revenues, attracts most of its foreign investment and lines the sovereign wealth fund. The country’s decision to export its gas has served it well, making it one of the wealthiest nations in the Caribbean.
“But, the assumptions upon which T&T’s industry were based no longer apply, forcing the country to rethink its energy strategy to ensure its future,” writes Jacobs. Along with the United States, T&T supplies markets in the Caribbean, South America, Asia and Europe with LNG and accounts for approximately eight per cent of the world’s LNG production.
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