Atlantic Train One on turnaround track

An aerial shot of Atlantic's LNG facility in Point Fortin. FILE PHOTO
An aerial shot of Atlantic's LNG facility in Point Fortin. FILE PHOTO

ATLANTIC'S Train One has apparently avoided being mothballed.

Newsday has been told the shareholders have decided to do a turnaround (TAR) maintenance schedule, which has been significantly scaled back from the original maintenance and upgrade plan – the Life Extension Project – from 110 days to 40 days.

The TAR is expected to start in October, but the hope is that Train One will be back up by the end of the year. The short-term goal is for the plant to run at least until the end of the first quarter of 2020. After that, another assessment will be made based on the availability of gas to supply the train.

Newsday was also told there is a commercial issue that needs to be resolved.

In May, BPTT confirmed "disappointing results" from its infill drilling programmes in the Columbus Basin would have a material impact on forecast production, especially in 2020 and 2021. The company said there will therefore be challenges to the gas supply to Train One after 2019.

The government, though, was not too worried about the potential fallout. In the short term, the country’s prospect’s might be better. In a press conference shortly after the BPTT announcement, Finance Minister Colm Imbert said the gas could be diverted to the other three trains and other downstream petrochemical plants, from which the country actually gets better returns.

Train One initially had a lifespan of 20 years, due to expire in April this year. Last November, Communications Minister Stuart Young said Government had successfully negotiated a five-year extension, including better pricing terms for the government.

Shell is the major shareholder in Train One, followed by BPTT, Chinese investors, CIC, and the State through the NGC. Government has no stake in Trains Two and Three but has an 11 per cent stake in Train Four.

Last month, in an address to the House of Representatives, Energy Minister Franklin Khan said phase two of negotiations with shareholders – the issue of restructuring of the four LNG trains into a single unit – would be the focus. Government will also seek to increase its shareholding throughout Atlantic.

Newsday approached Shell, BPTT and Atlantic for comment, and while the request was acknowledged, up to news time, no response had been received. Khan did not respond to calls to his cellphone.

Comments

"Atlantic Train One on turnaround track"

More in this section