Young: We'll discuss $240m spend with other Train One shareholders

ENERGY Minister Stuart Young hopes that some $230/$240 million spent by State-run National Gas Company (NGC) on turnaround and maintenance of Train One of the Atlantic LNG complex could be discussed with other shareholders of the train, he said on Friday, in the House of Representatives replying to three questions from Pointe-a-Pierre MP David Lee on the troubled train.

Young firstly said Train One had produced no liquefied natural gas (LNG) in the past year due to gas-supply woes and covid19.

In his second reply, Young said just as the Government was honouring its financial obligations to Train One, so too was optimistic towards other shareholders, namely bpTT, Shell and Chinese firm Summer Soca.

"The funding of Train One is a shareholder issue and therefore the shareholders' position is best sought from them, the shareholders themselves. Suffice it to say, the Government through NGC has honoured and will continue to honour all of its contractual obligations relative to Train One and expects that all other shareholders will continue to do likewise.

"The NGC LNG funding arrangement was terminated by Atlantic effective August 5 and as such Atlantic Train One funding requirements will continue to be in accordance with the Train One agreement." He said no shareholder has said they would neglect their commitment to the relative funding of Train One for the rest of the year.

Lee, in a supplemental, asked about roughly $240 million spent, relative to the other shareholders.

Young replied, "NGC expended a sum of money, roughly $230 million for the requisite turnaround and maintenance work to be done to Train One earlier this year."

He said the sum was a sunk cost used to keep the plant in a state that in could continue to be utilised (although not producing LNG in the past year.)

"We continue to be in discussion with the other shareholders of Atlantic LNG including with respect to Train One."

He hailed NGC's $1.085 million after-tax profit for the first nine months of this year, despite the write-off.

"It is expected that this sum of money that was expended will come up and will be dealt within the continuing talks and negotiations we are having with the shareholders."

In his third reply, Young addressed a report that all shareholders except NGC had declared Train One closed and installed blinds at the plant.

He said it important and "nothing unusual" to put binds on the plant, from an engineering perspective.

Young said he was not a party to the shareholder agreements and could not state their positions.

"However I can confirm Train One has been non-operational in 2021, apart from the turnaround work and the maintenance work. The plant remains de-pressured, isolated and (with) blinds installed to ensure the safety of the train within the Atlantic LNG complex." He said Trains Two, Three and Four were appendages to the first-built train, and were constructed based on some of the common features of Atlantic Train One. "So while no decision has been taken with respect to the future and how this will be dealt with from an engineering point of view and the works are being done and the costing is being done, it is not unusual for blinds to be installed on the plant in these circumstances."