TT GEOLOGICAL SOCIETY
Natural gas and by extension liquefied natural gas (LNG) have become forerunners in the hydrocarbon industry.
The reputation of being a cheap, clean and an abundant fuel source more environmentally friendly than oil and coal has made it quite attractive amid renewable energy alternatives that are not as affordable now.
With increasing supply demands along with mounting pressures to become carbon emissions net zero by the year 2050, it is clear to see natural gas and LNG has solidified its importance in the global energy demand for the long-term future. It forms an integral role in the fuel security strategies of many countries as the transition fuel and preferred energy source towards the goal of sustainable renewable energy.
With natural gas and LNG maintaining prices at the highest recorded in history at over US$4/mmbtu, the complexity of supply and demand along with the latest developments of the US becoming a major exporter instead of importer, have posed some significant challenges and opportunities for Trinidad and Tobago in the wake of the evolving LNG markets.
Our vast natural gas reserves and developed LNG infrastructure with years of proven expertise puts TT in a strategic position to pivot in this energy demand transition. With most untapped reserves situated in deep-water technically challenging plays and recent bid rounds failing to attract the much-needed interests of IOCs, gas shortages will persist and continue to affect the major downstream industries in coming years.
Effects of the gas shortage have already been felt by Atlantic LNG and Methanol Holdings scaling back activity. Steel giant Mittal has already left due to unfavourable conditions and labour force.
Increased domestic consumptions of LNG and natural gas from the governments ambitious carbon reducing initiatives such as 22 CNG stations with respective 17,000 vehicle conversions along with expanding downstream higher value chain industries will be deciding factors further contributing to supply shortfalls.
A new guaranteed gas allocation policy may be implemented by the government for power generation to the petrochemical industry using natural gas and LNG which will entice investors into producing high value products such as methanol, urea and ammonia amongst others.
[caption id="attachment_935411" align="alignnone" width="1024"] World LNG terminals 2021. Image courtesy the Geological Society of TT -[/caption]
There are upcoming projects pending approval in 2022 as highlighted by the Ministry of Energy and Energy Industries (MOEEI) with the potential to add some growth with the Cassia Compression and Matapal projects from bpTT but without upstream developments will have production declines in a few years.
Additionally, Shell signed an agreement in late 2021 with MOEEI to develop the Loran-Manatee field in the East Coast Marine Area – a controversial cross border gas field with Venezuela which TT has agreed to develop on its own si
