Home' Trinidad and Tobago Guardian : June 26th 2014 Contents JUNE 2014 • WEEK FOUR www.guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG9
The Ministry of Energy and
Energy Affairs has put together
an evaluation committee
chaired by its chief technical
officer Richard Jeremy to select
a consultant to develop the
country s natural gas master plan.
Well-placed sources have confirmed to the
Business Guardian that the several bids were
received before the June 5 deadline and the
committee has so far not met because Jeremy
is out of the country.
Energy Minister Kevin Ramnarine has prom-
ised that by next year T&T will have a new
master plan for the natural gas sector. Ram-
narine told delegates at the T&T Energy Con-
ference in February that "expressions of inter-
est" had already been received from companies
for the new plan which will cover the period
"This master plan will compliment the
national energy policy a draft version of which
will be put out for public comment shortly.
The new national gas master plan will be in
our hands before the Minister of Finance reads
the 2015 national budget," Ramnarine said.
He also said within the next two years, the
National Gas Company (NGC) will lose two
of its largest supply contracts in British Gas
(BG) and BP as well as the exploration of the
Train I contract for 2018.
The master plan comes at a challenging
time for the country s downstream energy
sector with a tight natural gas situation and
complaints from those downstream that they
are not getting enough gas for their opera-
The Ministry of Energy s statistics reveal
that for the first four months of 2014 there
were average daily swings in natural gas pro-
duction on a month-by-month basis of as
much as 400 million standard cubic feet per
day. In January 2014 for example the pro-
duction of natural gas averaged a mere 4,006
mmcf/d which was curtailed due to BPTT s
decision to take its Savontte well offline.
The company at the time said: "Although
the period of intensified maintenance activity
has ended, in line with regular business activity,
there are, from time to time, normal operating
activities that may have short-term impact
on production such as rig moves, heavy lifts
or delays on the drilling programme. We strive,
as far as possible, to work with all stakeholders
including the government, and downstream,
to coordinate these activities to mitigate impact
on their operations."
In February and March natural gas produc-
tion increased significantly to 4,397 mmcf/d
and 4,361 on account of a 400mmcf/d increase
in production from bpTT. That increase in gas
production would not last however and in
April natural gas production plummeted to its
lowest production for 2014 to bellow the 4,000
mmcf/d average production levels to 3,973
mmcf/d. This fall in production was on account
of at 20 percent decline in production from
BG Trinidad and Tobago while BP s production
again declined by 150 mmcf/d.
According to the Ministry s statistics, in
April BGTT s production was down to 797
mmcf/d from 1,006 mmcf/d and over 1,000
mmcf/d for the first three months of 2014.
Meanwhile BPTT s production was down from
2,329 mmcf/d to 2,168mmcf/d.
BHP Billiton, EOG and Petortrin have been
able to generally keep their production stable
according to the figures.
Energy consultant Helena Innis-King said
the company selected to produce the plan will
have to consider a strategy that includes further
natural gas expansion. Innis-King, who was
the director of resource management at the
Ministry of Energy, remains of the view that
the tight gas situation is temporary and the
country has more than sufficient supply.
In an interview with the Business Guardian,
she said, "There needs to be a strategy because
the present tight gas situation will not last.
There are gas deposits that have not been
developed because there is no market for the
gas. I am speaking of Centrica in the NCMA.
There is also the Loran/Manatee gas, the
Coquina/Mannakin, the possible gas discov-
eries based on the BP OBC seismic in the shal-
low marine area and possible gas in the deep
Innis-King, who is a geologist, said there
is a need to promote more downstream projects
even though she admitted that thus far there
has been little success. In fact, for the last six
years no new downstream project has gotten
off the ground.
She said: "We have not been able to go
downstream in a big way even though we have
been advocating this for a long time, how do
we incentivise that?"
In its first quarter report the global
Methanex noted that there were gas curtail-
ment that negatively impacted the company s
performance in Trinidad.
Industry sources said that the ebbs and
flows in the supply was negatively impacting
the natural gas production equipment used
by the upstream producers and causing more
maintenance work than normal.
Expert needed to develop
natural gas master plan
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