Monday, June 1, 2020

Trinidad Signs Pact with BP, Shell

December 3, 2018

Cabinet appointed Empowered Negotiations Team continued negotiations with British Petroleum Trinidad and Tobago (BPTT) and Shell Trinidad and Tobago Limited. Photo: Government of the Republic of Trinidad and Tobago

The government of Trinidad and Tobago (T&T) has entered into an agreement with energy giantsShell and BP over gas pricing and LNG activities.

According to local media reports, the agree­ment in­volves new pric­ing arrange­ments, the ex­ten­sion of the At­lantic LNG Train 1 by a fur­ther five years, and the abil­i­ty of the Na­tion­al Gas Com­pa­ny (NGC) to ex­port liqui­fied nat­ur­al gas (LNG) on be­half of T&T.

The government sources quoted min­is­ter in the Of­fice of the Prime Min­is­ter Stu­art Young said the agree­ment will lead to “significant” financial benefits to the twin island republic.

The gas pricing formula agreed to by Shell, BP and the National Gas Company, he said.

According to Young, the deal was achieved this week after months of what was described as intense but progressive discussions. The dis­cus­sions start­ed in April when Prime Min­is­ter Dr Kei­th Row­ley led a del­e­ga­tion to the Com­mon­wealth Heads of Gov­ern­ment Meet­ing (CHOGM) in Lon­don.

However, details of the pricing agreement were not revealed. Minister Young said the development is expected to bring several benefits including a level of job security in the industry.

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