Minister in the Office of the Prime Minister Stuart Young has announced that the government has reached an agreement with Bp and Shell that he says with bring "significant" financial benefits to Trinidad and Tobago.
The agreement involves new pricing arrangements, the extension of the Atlantic LNG Train 1 by a further five years, and the ability of the National Gas Company (NGC) to export liquified natural gas (LNG) on behalf of T&T.
The minister made the announcements as he addressed today's post-Cabinet media conference.
Minister Young said the discussions started in April 2018 when Prime Minister Dr Keith Rowley led a delegation to the Commonwealth Heads of Government Meeting (CHOGM) in London.
While there, the team, which include Minister Young and Minister of Energy and Energy Industries, Franklin Khan, met with executives of Shell and Bp.
Out of that meeting, all three parties agreed to appoint empowered negotiating teams to sit and negotiate terms of contracts going forward.
"I am happy to say that after months of very intense and aggressive negotiations, the Government of T&T has reached an agreement with Bp and also with Shell," Minister Young said.
Atlantic LNG's Train 1 was due to end operations in April 2019 but the minister now says it will continue at least until 2024.
An LNG train is a liquefaction and purification facility. It condenses gas into a liquid state.
Atlantic LNG has four trains in its Point Fortin plant.
The contiinuation of the train will allow for the continuation of jobs and further production of liquified natural gas for export and for sale to NGC.
NGC, Bp and Shell are among the shareholders of Train 1.
The minister told the media that he couldn't disclose the new pricing formula agreed to by the energy companies and government, but says the new formula "significantly enhances the revenue for the people of Trinidad and Tobago".
He said this will also be the first time that the NGC will have the ability to sell LNG cargoes of LNG on behalf of T&T.
"That is a major achievement that we did not have before," Young said.
The minister said that the agreements were only concluded yesterday and that more details will be revealed in time.