The Government on Thursday signed an agreement with energy giants Bp and Shell, that will lead to “significant” financial benefits to the twin island republic.
During Thursday’s post-Cabinet media conference, minister in the Office of the Prime Minister Stuart Young said 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 Trinidad and Tobago.
According to Young, said the discussions started in April when Prime Minister Dr Keith Rowley led a delegation to the Commonwealth Heads of Government Meeting (CHOGM) in London.
He added that out of that meeting, all three parties agreed to appoint empowered negotiating teams to sit and negotiate terms of contracts going forward.
“I am happy to say that after months of very intense and aggressive negotiations, the Government of Trinidad and Tobago has reached an agreement with Bp and also with Shell,” Young said.
Atlantic LNG’s Train 1 was due to end operations in April 2019 but the minister now says it will continue at least until 2024.
An LNG train is a liquefaction and purification facility that condenses gas into a liquid state.
Atlantic LNG has four trains in its Point Fortin plant.
The contiinuation of the train will allow for the continuation of jobs and further production of liquified natural gas for export and for sale to NGC.
NGC, Bp and Shell are among the shareholders of Train 1.
The minister told reporters that he could not disclose the new pricing formula agreed to by the energy companies and government, but says the new formula “significantly enhances the revenue for the people of Trinidad and Tobago”.
He said this will also be the first time that the NGC will have the ability to sell LNG cargoes of LNG on behalf of the country.
“That is a major achievement that we did not have before,” Young said.
The minister said that the agreements were concluded on Wednesday and more details will be revealed in time.