curtis.williams@guardian.co.tt
Trinidad and Tobago will receive its first gas from Venezuela’s Dragon Field in 2020. That is the promise from the Bolivarian Republic’s Minister of Energy, Manuel Quevedo, who yesterday insisted that while no Gas Sales Agreement has been reached between Petroles De Venezuela and the National Gas Company the deal will come to fruition and gas will arrive within the next two years.
“We are committed to the first molecules from the Dragon field coming to Trinidad and Tobago in two years time. From the perspective of PDVSA we think it can be done in less time but you will receive the first molecules within two years.” Quevedo revealed.
He said the signing ceremony that took place recently in Caracas meant that the governments of Venezuela and Trinidad and Tobago had done their part and it was for the companies to now reach an agreement.
This would be welcome news to the downstream sector as there has been concern whether an agreement can be reached to have the much needed gas arrive here in the shortest possible time.
Trinidad and Tobago has been suffering from gas curtailment for the last six years and it has led to a shortfall in the production of all the commodities including LNG and Petrochemicals and as a consequence significant loss of revenue to the treasure and foreign exchange.
Speaking in Port-of-Spain at a news conference to mark the conclusion of the Ministerial meeting of the Gas Exporters Countries Forum, Quevedo said the important thing is the deal will result in a fair price being received for the gas by Venezuela, a fair price being paid for it by Trinidad and Tobago and a fair price being paid by the consumers of the gas.
Venezuela’s Energy Minister inadvertently gave some insight into the terms of the agreement by revealing that some of the gas will also be exported, which means some of it will go to LNG while the rest will go to domestic use.
Recently Prime Minister Dr Keith Rowley had told the media, “We may have been able to save our industry by getting a secure source of gas for the downstream sector. It may over time also allow us to look at the expansion of the downstream sector and investments there, as long as we can show investors we have a secured stream of gas.” The Prime Minister told journalists on the flight back from the Bolivarian Republic.
The Prime Minister was not willing to disclose the price of the gas, pointing to commercial confidentiality, but he revealed it will be 150 million standard cubic feet per day (mmscf/d), with the possibility of it increasing to 300 mmscf/d.
Dr Rowley said the pipeline carrying the gas from Venezuela’s Dragon Gas field in Eastern Venezuela to Shell’s Hibiscus platform off the North Coast will be built and owned in a joint venture between the NGC and Shell Trinidad. The estimated cost of the construction of the pipeline is close to TT $1 billion.
Quevedo lauded the deal saying it was showing the world how to cooperate and ensure that all parties can benefit.
Meanwhile Minister Quevedo said significant progress had been made in the negotiations for the development of the giant Loran Manatee field which straddles the boarders of the two countries.
Loran Manatee alone is almost equivalent to the proven reserves of Trinidad and Tobago with an estimated 10 trillion cubic feet of natural gas in it. Trinidad has about 2.7 tcf of gas on its side of the boarder but under international law cannot develop the gas unless it has an agreement with Venezuela.
The negotiations have been going on for almost a decade and a half and Quevedo said the technical work was close to completion and he expected quick progress.