Atlantic upgrade stalls for gas

The country’s largest taxpayer, BPTT has confirmed “disappointing results” from its drilling programme in the Columbus Basin, which will impact its 2020/2021 natural gas forecast and its supply to Atlantic’s Train One, potentially stymieing its upgrade and extension.

Sources have told Newsday that over the Easter period, BPTT drilled four dry wells in its Cannonball field, off the south-eastern coast of Trinidad. Those wells were part of its current exploration programme. The company told stakeholders of the development on Thursday, Newsday was told.

This will undoubtedly have an impact on the country’s gas outlook, estimated to be 3.6 billion cubic feet (bcf) in 2018, with projections of 3.8 bcf in 2019 and 3.9 bcf in 2020, and hopefully over four billion in 2021. Natural gas in TT peaked in 2010 at 4.3 billion bcf.

Former energy minister Kevin Ramnarine said, “This has far reaching consequences for the economic outlook for the country as the Government had premised future growth on gas production improvements.”

Energy Minister Franklin Khan did not respond to Newsday’s multiple requests for comment.

The gas from those wells was supposed to go to Train One, meaning the company will likely not be able to meet its commitments to Train One.

In its statement, BPTT, which is the second major shareholder of Train One, said it was “working through options” with Atlantic and other shareholders for the future of the train. Atlantic’s other three trains remain unaffected.

Shell, Train One’s majority shareholder, said something similar.

“Shell is aware of the challenges to gas supply to Train One after 2019. These are early days. As shareholders, we are currently evaluating the wider impact of this and are working to explore future options for the Train. The other three trains remain unaffected,” the company told Newsday in a statement.

Communications Minister Stuart Young at a post-Cabinet media briefing last November announced the five-year extension plan for Train One, which would have reached the end of its 20-year cycle this year. In a brief text message yesterday, he said Government had noted the recent development.

He said, “At this stage it is really a shareholder issue and we will continue to be informed by the stakeholders.”

BPTT assured that its already-sanctioned programmes for 2019 would continue as planned, especially Angelin, Cassia Compression (TROC) and Matapal, as well as further development of the Columbus Basin. Regional president Claire Fitzpatrick said the dry wells were all a part of “the nature of the business.”

She said, “Despite BPTT’s recent exploration successes, these recent drilling results remind us that there is inherent uncertainty in the subsurface… we will continue to leverage the latest technology to find and develop resources.”

An Atlantic spokesman told Newsday the company had been informed by one of its two energy partners that the supply of gas to Train One was “uncertain.” The company, then, would use the down time to continue maintenance on the facility to ensure its service in the future.
– with reporting by Richardson Dhalai