Atlantic Train One talks ongoing

NEGOTIATIONS on the future of Atlantic LNG (ALNG) Train One and restructuring of the company are ongoing.

This from Energy Minister Stuart Young, National Gas Company (NGC) chairman Conrad Enill and bpTT officials on Monday. At a news conference at Piarco International Airport on November 6, the Prime Minister hoped a decision on Train One’s future would be made by the end of next March.

Dr Rowley also said the future of Train One and ALNG’s restructuring formed part of talks between Government and energy multinationals BP and Shell in London last week

Rowley said while Government has a ten per cent share in Train One “as a country, we have a much larger interest than ten per cent, so we would be the last person to walk away from the table on Train One.”

He said, “We have agreed that by the end of the first quarter of 2022, we will take a definitive decision on how we together do what has to be done about Train One and attempt to conclude the restructuring of Trains Two, Three and Four where all the shareholders will have their interest served in a restructured arrangement of the Two, Three and Four trains.” Young reaffirmed that this is the current state of play.

“Parties are still negotiating the future of ALNG and this includes all final decisions related to Train One and its facilities.”

He said, “Gas availability and future gas production are critical components with respect to the future of ALNG. The Government remains focused and committed on ensuring the future of our gas industry and finding the most mutually beneficial structure of ALNG.”

National Gas Company (NGC) chairman Conrad Enill supported Rowley’s position.

“The discussions are continuing and are not yet completed because that is where it is. There is nothing new we could add.” In a subsequent statement, NGC said it noted erroneous media reports about the expenditure to maintain Train One. NGC said it wanted to reiterate that US$39.2 million ($224 million), including turnaround costs, was that expenditure and not a $650 million figure that was being reported. “No additional expenditure was made.”

NGC also referred to its assurance to stakeholders on September 5 that “all decisions taken around Atlantic LNG, including Train 1, adhered strictly to its governance process.”

A statement issued by the Office of the Prime Minister on November 4, regarding Rowley’s talks with Shell executives in London last week said, “The commercial restructuring of ALNG was included on the agenda. “ BpTT officials also confirmed the ALNG talks are ongoing. “Nothing has changed,” officials said.

Former energy minister Kevin Ramnarine questioned why money was spent on Train One if there was no natural gas to supply it. Ramnarine said he spoke about this in 2019.

The future of Train One has been in doubt since the plant was idled and put on a maintenance schedule in 2019. Last December, then energy minister Franklin Khan said, “Train One will continue to operate in 2021 and will be part of a wider negotiation which has been taking place among the ALNG shareholders to form one unitised facility encompassing all four trains.”

Shareholding in Train One includes Shell at 46 per cent; BP – 34 per cent; NGC – ten per cent and the Chinese Investment Corporation (CIC) – ten per cent.

Shareholding in Trains Two and Three includes Shell – 57.5 per cent; BP – 42.5 per cent.

Shareholding in Train Four includes Shell – 51.11 per cent; BP – 37.78 per cent; NGC – 11.11 per cent.