The Government is still in negotiations concerning the future of Atlantic LNG Train 1, Minister of Communications Stuart Young said in Parliament on Monday.
The Port-of-Spain North/St Ann’s West MP said the Opposition was using the recent announcement by BPTT concerning gas supply to the Point Fortin plant, as a tool for fear mongering.
“Yes, obviously this government is going to look at what happens with Train 1. There is no rejoicing, this government is not happy about any setback whatsoever, in the energy sector. But this government will not roll over, we are working hard and continuing our negotiations with Shell,” said Young.
He said the Government had taken note of what was happening with BPTT concerning their gas supply, and offered some clarification concerning the situation.
“BP has not had four dry wells. What happened is in (the Cannonball platform) they were drilling in December 2018, in the first well they were drilling, Immortelle encountered a mechanical integrity issue and as a result of that they had to drill a second one into sand and that was the well that was found to be wet and that there will be no production from. In Easter of this year, they then drilled two in Cashima and the well in Cashima is not a dry well. The well in Cashima at this point in time appears to have less than they thought. They were going for a hundred million scuffs (standard cubic feet of gas),” said Young during his contribution in the Lower House, “So what they are looking to do right now is re-evaluate.”
Train 1’s production contract was set to expire in April, but the Government had negotiated with BPTT and Shell to continue production at the facility until 2024. That deal was initially announced in November last year.
“We renegotiated a formula, an enhanced revenue formula for the people of Trinidad and Tobago for Train 1. That is half the amount of gas goes through Train 1 that can go through it will result in an enhanced revenue on an annual basis. Conservatively of an extra US$230 million a year for the people of Trinidad and Tobago,” he said.
“We are very close to tying up our negotiations with Shell and I am certain that within the next couple weeks the Minister of Energy will be able to announce to Trinidad and Tobago has done with regard to enhancing revenue out of the energy sector,” said Young.
Young also clarified this country also had a 10% ownership stake in the LNG train 4, in response to the Opposition Leader’s claim that the Government only had a ownership stake in Train 1.