For T&T to navigate this complex energy future several factors need to be taken into consideration, including how hydrocarbons are developed and efficiently monetised.
This was among the recommendations discussed at the CEOs’ Panel at the Energy Conference hosted by the T&T Energy Chamber and held at the Hyatt Regency, Port-of-Spain.
According to Juan Vazquez, country manager of Woodside Energy, this country needs to think differently about its hydrocarbons.
“We need to start thinking about emissions intensity in the early stages of a project which is something that wasn’t natural in the past.
“We need to be more creative from a commercial and from a technical perspective to be able to offset cost pressures, to make those molecules low cost and more affordable and we need to find ways to move faster from discovery to first production,” Vazquez explained.
He further explained all these elements are very important for deep-water developments like Calypso.
Calypso, the deep-water natural gas resource off T&T is currently being appraised but is estimated at approximately six trillion cubic feet (tcf) with potential gas production of 600 million cubic feet per day (mmcf) to 1,000 mmcf per day.
As part of the Calypso project, the Ministry of Energy has opened up additional deep-water blocks, attracting new operators to line up exploring opportunities for 2023/2024.
Vazquez further reiterated that Woodside Energy sees Calypso as a strategic resource for T&T as it has the potential for unlocking the deep-water province.
“And we are working to make it the best it can be for the partners as well as for T&T,” he emphasised.
However, the future of energy also entails a balancing act.
Noting that the energy transition will not be achieved overnight, Vazquez outlined that this, however, will bring tremendous change as well as opportunities.
This country’s energy sector, he advised needs to consider three key elements; firstly to be more adaptable and resilient than it has ever been.
“The world is increasingly more connected and what happens in one end is immediately felt in the other. We all know that too well through geopolitical conflicts, the pandemic and technological breakthroughs.
“This connectedness is going to bring challenges as well as opportunities for T&T and we need to be able to act fast,” Vazquez emphasised.
Investing in the mix is also important.
He said as low-carbon products and services become more relevant, the role of oil and gas is also very important from a stability and security perspective.
“As we think about the energy transition I always reflect on Woodside’s strategy which is to thrive through the energy transition by providing low-carbon reliable affordable energy that the world needs. It all starts there.
“Those factors are very important because the solutions for energy demands will have to balance these factors,” Vazquez added.
NGC’s president Mark Loquan also echoed similar sentiments that the world currently finds itself in a state of shifting priorities; changing between energy security and energy sustainability.
“I think the landscape we are talking about here is very much where we are trying to build that bridge to the next side which involves getting to clean energy on the next side,” Loquan noted, adding that this is going to take time.
He said the state-owned company continues to do its part by trying to take methane out of the chain and “trying to get as efficient as possible with every single molecule and particularly looking at how those molecules go towards power instead of going to the petchem industries.”
Additionally, Loquan said there’s an “inherent roadmap” emerging, essentially starting on one end with the renewables and moving into the carbon capture and hydrogen side.
However, he noted that while doing all of this carbon and methane continue to rise in the atmosphere resulting in adverse weather events worldwide.
Going forward focus must remain on adaptation, Loquan suggested for years to come, adding that achieving this energy transition will, therefore, require organisations and governments to be more aligned.
He said part of the solution is not only confined to T&T but also reaches the region and even on the international front where local talent can be capitalised upon.
Investing in the mix Marc Jardine, vice-president, business banking T&T said means being tied into several factors leading to a sustainable future.
He said the bank is committed to this as it understands the role of supporting traditional energy as well as the growth and development of alternative sources.
“We understand the transition is gradual and we need to take steps to ensure there’s certainty in energy supply; understanding that in different countries the source of energy cannot be the same,” Jardine said.
He said not only is the bank tied in on a local level but also globally as well as it commits CAN $500 billion towards sustainable financing.
We have the infrastructure —Energy Minister
This country has the infrastructure and it’s always ready and willing to do business.
“We are making good strides on the hydrogen side and one of the key messages particularly those who are looking to invest in T&T and to bring in investment is we have the infrastructure,” Energy Minister Stuart Young said noting that the Point Lisas Industrial Estate for instance, does not exist anywhere else in the western hemisphere where there’s that mix of commodities.
There are other developments in the industry Government is working on such as expediting carbon capture, utilisation and storage (CCUS).
While Young admitted this is not taking place as quickly as he would like, movements are happening, adding that NGC and Heritage are already doing the work on the methane clean-up.
“So we have ticked the box with decarbonisation, we have ticked the box with the methane. Where we now need to focus while we are still doing all of the upstream investments on the gas side, with the EOG’s, the bps, the Shells, Woodsides...to those naysayers who don’t want to believe the deep-water is going to happen it is happening.
“We are in active conversations with Woodside to bring Calypso to market,” Young emphasised.
He maintained this country has an advantage over many other territories that are hydrocarbon-based because T&T has a mature infrastructure basin.