geisha.kowlessar@guardian.co.tt
A promise that in five years time two projects will have a significant positive impact on natural gas production in T&T.
It comes from Energy Minister Stuart Young who pointed to the Manatee Field Development by Shell and the Calypso Deepwater Project by BHP/Woodside /BPTT as game changers in the continued challenges facing the local natural gas sector.
He explained that in November 2021 Government and Shell agreed to the terms and conditions of a Production Sharing Contract (PSC) for the Manatee field, which was previously unitised with the Venezuela Loran field.
According to the Energy Minister, current projections indicate that this project is expected to come online in 2027, with a gas production rate of 700 mmscf per day.
He said the deep-water gas resources of BHP/Woodside’s Calypso Project are currently being appraised and are estimated at approximately six (6.0) trillion cubic feet (tcf) with a potential gas production of between 600 million standard cubic feet (mmscf) per day to 1 billion cubic feet(bcf) per day.
And while Young noted that these developments will sustain the country’s gas industry in the medium term he said if the industry is to be sustained in the long term, upstream exploration and development activity must be accelerated and expanded.
“It is imperative that we need to pursue, to provide certainty of supply for downstream industries, LNG and power generation,” Young explained.
Young revealed that the Ministry of Energy has approved the drilling of several development wells which target natural gas reservoirs.
“Thus far, in the marine area, we have realised first gas from Shell’s Colibri project which encompasses the Cassra and Orchid fields,” Young said.
He also noted that projects which scheduled come on stream in the second half of 2022 include De Novo’s Zandolie development, EOG’s Osprey East Development and Osprey West Project and BPTT Cassia Compression Project.
Onshore, the Energy Minister said production out of Touchstone’s Ortoire block from its Coho and Cascudura discoveries, with first gas expected in the second half of 2022.
Young also noted that on April 28, 2022 Touchstone reported the commercial potential of its Royston 1 in its Ortoire Block.
This discovery further underscores the prospectively of onshore T&T as a proven hydrocarbon province, Young added.
And consequent on these developments the Energy Minister said gas production is projected to increase from the current levels to 3.28 tcf by 2024. Beyond that he noted there is a suite of projects that are awaiting sanction and are critical to meeting the requirements for power generation, downstream and LNG. In the short term, including BPTT’s Ginger, Cypre, and Coconut fields and extended field developments in its Mango, Savonette and Juniper fields.
Additionally, Young said BPTT is involved in a joint-venture with EOG in the Mento in the Ska/Mento/Reggae (SMR) Block.
EOG Resources also has seven exploration projects that are currently unsanctioned.
“Four of these projects are Joint Venture projects with BPTT in the East Manzanilla Zone and the SMR Block and the other three projects are in the SECC block,” Young further explained.