Home' Trinidad and Tobago Guardian : August 13th 2015 Contents AUGUST 13 • 2015 www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG5
BPTT is distancing itself from any suggestion
that it has been undercutting the country's
revenues by selling LNG to markets that are
not attracting the best prices and therefore
denying the country to share in the upside of
the LNG trade.
In a strongly worded response to questions
from the Business Guardian, the company said
its sales of LNG were in keeping with not just
the contractual arrangements with Trinidad
and Tobago but also in keeping with the spirit
of that agreement.
It wrote: "We believe that BP's marketing of
LNG cargos is fully aligned with the "spirit"
of the agreements with the government of
Trinidad and Tobago."
The company added: "BP's LNG shipments
from Trinidad and Tobago are part of the com-
pany's global LNG portfolio, which is managed
carefully to ensure compliance with our local
and global gas contractual commitments and
in so doing we continue to generate value for
the company and Trinidad and Tobago. However
we would not comment on any specific com-
The Business Guardian reported exclusively
last month that T&T's revenues were being
hurt by the sale of LNG cargoes to low priced
markets and therefore the netback sales were
In fact the Government has lost more than
$100 million during this last fiscal year in oppor-
tunities for higher netback payments as some
of the Atlantic LNG partners have not been
sending cargoes from Atlantic LNG to the high-
est priced market.
Investigations by the Business Guardian
revealed that while the three major shareholders
of Atlantic LNG, namely BPTT, BGTT and Shell
are operating within the strict terms of their
contracts, their actions are significantly hurting
the country's revenues.
In fact the matter got so bad that Energy
Minister Kevin Ramnarine confirmed that he
has been forced to write to at least one of the
companies on the issue.
He told Business Guardian in an email: "We
have been monitoring the netbacks for all con-
tracts for the last year. In the case of one Atlantic
partner there has been a significant drop in the
net back. I wrote to the company expressing
the concern of the Ministry."
The company the minister wrote to is Royal
Dutch Shell which, if all the regulatory bodies
approve its acquisition of BG Group's assets,
will easily become the single largest shareholder
in Atlantic LNG and the country's second largest
natural gas producer. It will also become a
player in the deep water as a member of a con-
sortium with operator BHP Billiton.
The Business Guardian questioned Shell on
the issue and the company was careful to neither
deny the allegation nor to confirm it. Instead
Shell insisted that it was operating within the
terms and conditions of its contract with the
Trinidad and Tobago government.
Shell was sent the following questions.
Can Shell say whether the Government of
Trinidad and Tobago has raised concerns about
the netback it is receiving from Shell's LNG
Has the Minister of Energy written the com-
pany on the matter?
Is Shell in discussions with the government
on the netback it is getting for LNG cargoes
or the markets that those cargoes are going?
Is Shell still convinced it is operating in the
best spirit of the agreements it has with the
Trinidad and Tobago government?
The company responded in this way:
Shell does not share specific details about
commercial deals. However, Shell is satisfied
that we have met all of our regulatory and con-
tractual obligations for the sale of LNG from
Atlantic LNG, Trinidad and Tobago. Beyond
this, it would not be appropriate to discuss
matters involving our commercial partners."
The way the contracts work in Atlantic ,
the companies in the main have fixed long term
contracts in different markets but if they are
able to divert cargoes to other markets where
they can get a higher price, then the upside
is shared in a pre agreed formula with the Gov-
ernment of Trinidad and Tobago.
With some of the traditional markets like
the US attracting prices at the Henry Hub at
less than $ per mmbtu, the more lucrative mar-
kets like the Far East are being sought after.
However the international companies like Shell
, BG and BP have global production and where
they take the LNG to send to the higher priced
markets depends on what works best for them
and not necessarily what benefits Trinidad and
Ramnarine said since writing to the "com-
pany" they have responded and are holding
talks with them the government which the
Minister of Energy anticipates " will be suc-
He said: "The Ministry takes very seriously
the business of value being returned to the
country. We treat companies fairly and we
expect in return they would treat the country
We have fulfilled
Prime Minister Kamla Persad Bissessar,second from left, receives a token of appreciation from CEO of Royal Dutch Shell PLC Ben Van Beurden
at the Diplomatic Center, St Ann's. Also in photo is Minister of Energy and Energy Affairs Kevin Ramnarine (second from left), Country Chairman
Shell PLC Luis Prado(second from right) and John Crocker Senior Shell Executive.
Huawei, one of the world's largest telecom
equipment suppliers, is about to launch its suite
of smartphones at TSTT offices throughout T&T
Taiwan-based market-research firm TrendForce
reported last month that Huawei became the
the world's third-largest smartphone vendor by
shipments in the second quarter of 2015 with a
7.6 per cent share of the global market.
The company, whose headquarters are in Shen-
zhen, China, follows Samsung, with a 26.8 per
cent global smartphone share, and Apple Inc,
with 16.4 per cent. In an interview last month,
Jason Deng, general manager of Huawei Tech-
nologies (T&T) Ltd, told the Business Guardian
that the company has been operating in T&T
since 2006 and is now the number one equipment
supplier to both telecom operators here.
Huawei operates in 170 countries and has about
170,000 employees, about 70 per cent of whom
work outside of China.
The company has three business groups: carrier,
enterprise and consumer and in its earlier years
manufactured phones for other companies.
But in 2011, Huawei decided to sell its own
brand of devices and has been seeking to
strengthen its brand throughout the world.
That brand-building effort led the company
to take a booth at this year's Trade and Investment
Convention and it is planning a big advertising
and promotion campaign to ensure that its smart-
phones make a splash in the local market.
Huawei smartphone are already available
throughout the Caribbean as the company has
offices in Panama, the Dominican Republic,
Jamaica and the Bahamas.
Huawei to launch smartphones in T&T
Jason Deng, general manager of
Huawei Technologies (T&T) Ltd,
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