Government looking for new energy streams

THE Prime Minister and the Energy Minister have both said Government is continuing to aggressively pursue initiatives inside and outside of TT's borders, that will ensure the long term health of the energy sector and the economy.

Dr Rowley and Stuart Young made these comments at a ceremony in Point Fortin on September 27, to mark the 25th anniversary of the founding of Atlantic LNG and celebrate the agreement signed last December to restructure the company.

Rowley recalled decisions taken by the former Patrick Manning administration in 1991-1995, to go into the LNG (liquefied natural gas) business as a way to earn new revenues.

He said it was interesting over time that some people have been advising TT to get out of the LNG business, for climate change reasons, are expanding their presence in LNG.

Rowley added one nation which was once a consumer of TT's LNG is now an exporter of LNG and a crude oil producers.

He said TT is a co-operative and responsible country.

"Our responsibility, first and foremost is to the people of TT."

Rowley repeated it was fortunate for TT to be geographically close to Venezuela which has large natural gas deposits but has challenges bringing them to market. With its existing energy infrastructure, Rowley said TT is in a position to process and market natural gas from Venezuela.

He added it was to Government's credit since 2015, that it has been able to persuade Venezuela to allow TT to have an interest in the Dragon gas field (located in Venezuela's territorial waters), de-link the Manatee gas field (located on TT's side of the maritime border with Venezuela) from the Loran field (located in Venezuela) and have interests in the Cocuina-Manakin field which straddles the TT-Venezuela maritime border.

Rowley said the gas from Manatee could help to maintain the existing levels of natural gas.

"If we don't add new gas, we are not only talking about declining. But even holding your production, where we are now. We need a strong stream of gas coming in to maintain the levels which we are in."

He added there also exists the possibility of TT accessing gas from the Loran field as well. With respect to the pursuit of energy agreements with Venezuela, Rowley said people should not be distracted by the geopolitical events related to questions over recent presidential elections in that nation and speculations about possible consequences.

"Both TT and Venezuela and the US. We all have an interest in the success of peace and security and good commercial arrangements between the neighbouring countries, Venezuela and TT."

Rowley reminded his audience that one of the benefits of the restructured ALNG was its ability to accept and process natural gas from third parties.

He recalled that under the former arrangement, the company could only process gas it receives from its shareholders.

Rowley said ALNG will now be able to process gas from entities which are not shareholders, earn revenue for doing so and eliminate the phenomenon of stranded gas.

He repeated statements made in June by Finance Minister Colm Imbert that the 2024-2027 period could be economically challenging for TT because the revenue for this year could fall $3 billion short of the $54 billion which was projected in the 2023/2024 budget last October.

At that time, Imbert was confident the country's revenue position would improve by 2026 or 2027.

Rowley shared that optimism.

Young said many people did not understand that a restructured ALNG has set a platform for further initiatives to develop the energy sector.

"We extended the life of the energy sector and the economy of TT in very difficult circumstances."

Young said there are positive developments taking place locally that are tied to ALNG's restructuring.

He disclosed that on September 26, he toured the seismic survey vessel, PXGEO, which did an analysis of some deepwater marine blocks.

A statement issued by the ministry on September 27, said Young's visit followed the Government’s approval to negotiate a production-sharing contract (PSC) with Shell for Block Modified U (c), located in shallow waters off the southeastern coast of Trinidad. The block was awarded during the 2023 Shallow Water Competitive Bidding Round.

Young said, "That is as a result of the restructuring of ALNG. In our waters, to ensure future gas supply." He added the vessel conducted a seismic study of Cocuina-Manakin too.

Young recalled that in July, a 25-year exploration and production licence was negotiated with Venezuela for that field.

He said the vessel will soon conduct seismic surveys in local shallow waters "in a block that the Cabinet only yesterday (September 26) approved and confirmed the award of a PSC (production sharing contract) licence."

Young added this licence was negotiated and ready for signature in the space of one month. "These are all securing the future for the next set of generations."