A year behind schedule, lost opportunity for T&T to bring on much-needed natural gas in a high-priced gas and petrochemical global market, and bpTT’s Regional President Claire Fitzpatrick insists the company was right to export the fabricating of its Cassia C topside to Mexico and not have the work done in La Brea.
In a brief interview with the Business Guardian (BG) at the energy conference Fitzpatrick was asked if in hindsight it would have been better to fabricate the topside in Trinidad. The bpTT president simply responded: “No I don’t”.
“The decision was made to the best information available at the time. None of us knew about covid, going forward I would continue to like to see Trinidad companies being competitive and get some stuff done here. You heard DeNovo talk about their Zandolie platform and a lot of our projects going forward are going to be sub-sea,” Fitzpatrick added.
In 2018, bpTT awarded a contract to TOFCO to fabricate the jacket for the Cassia C platform at La Brea and decided to fabricate the topside at the Altamira fabrication yard, Mexico.
The Jacket which was fabricated in Trinidad was long completed and installed but the topside that was being fabricated in Mexico has had significant delays and well-placed sources have told the BG that the installation phase has revealed many technical issues with the fabrication in Mexico.
A jacket refers, in oil and gas exploration and production, to the steel frame supporting the deck and the topsides on a fixed offshore platform.
Fitzpatrick said there was nothing bpTT could have done since the delays were caused by significant Covid-19 outbreaks that forced the shutdown of the fabrication yard.
She admitted that there are start-up issues but insisted that these are within the scope of normal start-up challenges.
“There’s always issues once you come out of a yard and you start commissioning a project, that’s where you start to discover things, so I would consider that within the normal project.” bpTT’s regional president told the BG.
According to bpTTs website, Cassia C is a compression project which will enable BPTT to access and produce low pressure gas reserves from currently producing fields in the Greater Cassia Area, maximising recovery from these existing resources.
The platform will have a throughput capacity of 1.2 billion standard cubic feet of gas a day (bcfd). The project was sanctioned in 2018 and is expected to come online in 2021.
Asked whether bpTT would, in the future, consider returning to La Brea to fabricate major project Fitzpatrick was not prepared to commit to it.
“We will consider, as we always do, it is a competitive process and the Trinidad companies can bid for what we need in terms of quality, size, safety, all the commercial stuff, as we have done before. We built seven platforms in La Brea, the actual topside for Cassia would have been a problem in La Brea this time,” bpTT’s regional president told the BG.
Recently BPTT confirmed the further project delay, saying COVID-19 was responsible for its inability to deliver the natural gas on time.
BPTT told the Business Guardian: “The hook up and commissioning phase of the Cassia C project is continuing and first gas is expected in the second half of the year. The project was initially planned to come online in 2021 but delivery was pushed to 2022 due to the impact of COVID-19.”
The company’s failure to deliver on its Cassia C project and its failed infill drilling programme have significantly hurt the country’s natural gas production and government revenue.
It has also negatively impacted everything from LNG output to the gas available to the petrochemical sector.
The lack of natural gas from BPTT has also been the cause for the decision to shut the Train 1 LNG plant as the National Gas Company Ltd (NGC) wasted more than a quarter billion dollars behind Train 1, hoping it would have access to more gas that was not forthcoming.
BPTT has also not been able to meet its contracted obligations and has been shorting both Atlantic LNG and the NGC of natural gas.
However under its contracted agreement NGC has no recourse for BPTT’s failure to provide it with contracted quantities although the NGC was forced to pay out huge sums to downstream companies for its failure to provide them with all the contracted quantities of natural gas.
1) ↓Can BPTT say whether its Cassia project has been delayed again to the end of the year?
2)↓ ↓If so what are the reasons for the delay?
3) ↓How long has been the delay from the original start up timeline to the latest estimated start up date?
4) ↓How has this impacted BPTT’s ability to deliver gas to its customers?
5) ↓What is expected to be the sustained production of Cassia when it gets going?
BPTT said: “Cassia C will deliver between 200-300 million standard cubic feet of gas a day (mmscf/d) and production will be put towards fulfilling our existing contractual obligations.”