May 2016 Financial News

T&T signs gas deal with Venezuela

May 24, 2016

T&T can now purchase gas from Venezuela following the signing of a Memorandum of Understanding (MOU) yesterday.

The signing took place between Prime Minister Dr Keith Rowley and Venezuelan President Nicolas Maduro at the Diplomatic Centre, St Ann’s.

Commenting on the signing afterwards, Energy Minister Nicole Olivierre said the MOU would help boost T&T’s gas shortfall.

“What is unique about this particular field in the North Coast is that this is not a field which is across borders of both countries. This is a wholely Venezuelan oil field,”

Olivierre said of the Dragon Field where the gas would be accessed.

“What is new about the arrangement is that we now have an opportunity to purchase gas from Venezuela. We are seeing Venezuela as a source of gas that would address our current shortfall situation.”

Asked if this move would require the laying of 19 miles of pipeline from Atlantic LNG to Venezuela, Olivierre said the Government had not identified if the gas would be going to Atlantic LNG, since the shortfall was in “both the domestic sector and Atlantic LNG.”

Olivierre, however, stated that a new pipeline would have to be laid because the field would have to be “inter-connected in our gas transmission system.”

She said the closest point for the gas to flow was through the Hibiscus Platform in the North Coast marine area.

Olivierre said the agreement was signed between both countries “so we are looking at the state companies initially. What this Dragon Field arrangement is simply is a source of gas to Trinidad and Tobago to mitigate against our shortfall.”

One of the MOUs signed, Olivierre said, would have spelt out how the six parties involved — four companies plus two Governments — would operate.

“That agreement would have outlined how these six parties, which is the directing committee, would liaise with that unit operator and in terms of decision-making... who has what percentage say.”

On Wednesday, Olivierre said the standing committee on energy would also meet with Petrotrin so they could come up with a better framework for building the oil company’s capacity to increase its oil production “and really getting it out of the financial situation it is in.”

Olivierre said she was now more hopeful T&T could see the commencement of extraction of gas from the Loran-Manatee field, an issue which it has been negotiating with Venezuela for years.

“One of the other agreements we signed was an agreement that outlined the parameters under which that field would be operating,” she added.

Source:
Trinidad Guardian, A9
Tuesday May 24, 2016