The National Gas Company of T&T (NGC) and Shell Trinidad and Tobago (Shell) yesterday signed an amended domestic gas sales contract to incorporate a share of the natural gas volumes from the Shell-operated Manatee field, once the project is sanctioned.
The signing took place yesterday at the Hilton Trinidad and was attended by Energy Minister Stuart Young, along with the principals of both signatory companies.
In a news release yesterday, NGC said the amended gas sales contract will entitle it to purchase gas produced from one of the country’s largest offshore fields, to supply to the downstream sector across the medium term.
In 2019, the Government and Venezuela executed an agreement to allow each country to independently develop its share of hydrocarbon resources from the Loran—Manatee Gas field, which straddles the maritime border between T&T and Venezuela.
It said both Shell and NGC are working assiduously to monetise this reserve—Shell as the operator responsible for development and production, and NGC as the entity that will facilitate receipt and processing of the gas via its Beachfield facility.
Shell’s senior vice president and country chair, Eugene Okpere said, “This domestic gas sales contract is further evidence of Shell’s commitment to partnering with the Government to achieve its goal of energy security. Today also marks a critical step toward enabling Shell’s next milestone of Final Investment Decision for the development of the Manatee project.”
Speaking at the event, NGC’s president Mark Loquan applauded the efforts made to realise this milestone agreement, “Manatee represents a significant resource for T&T, and every step we take toward bringing this field online brightens our prospects for future domestic supply.
“Our teams have laboured to bring us to this point, and we acknowledge with deep gratitude the quantum of work delivered, as well as the impact it will have on our country. We do recognise that we have some distance to travel before we can access gas from Manatee, but we are committed to the outcome and optimistic that we can bring this project to fruition, in partnership with all stakeholders.”
The Manatee gas field is part of a larger field called the Loran—Manatee, which straddles the Venezuela and T&T maritime borders.
The field is estimated to have total proven reserves of about 10.25 trillion cubic feet with Venezuela owning 73.75 per cent of the joint field and T&T owning the remaining 26.25 per cent.