Atlantic restructuring deal sealed: Energy Chamber applauds achievement

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The Energy Chamber of Trinidad and Tobago welcomed the final signing of the Atlantic restructuring agreement, marking a pivotal moment for the country’s gas sector and overall economic landscape. In praising the negotiating teams from bpTT, Shell, the National Gas Company of Trinidad and Tobago Limited, and the government of Trinidad and Tobago, the Energy Chamber commends their handling of the process, delivering a revamped commercial and legal framework for Atlantic.

Highlighting the implications of the restructuring, the Energy Chamber emphasized that this move will instil greater certainty for Atlantic’s shareholders and open doors for crucial investments into the plant. The investments are expected to focus on reducing the LNG’s carbon footprint, positioning Atlantic as an environmentally responsible LNG producer. While specific details of the revised structure remain undisclosed, the Energy Chamber conveyed cautious optimism regarding its potential to attract essential future investments into upstream gas production.

Anticipating a positive ripple effect, the Chamber underscored the probable outcome of increased investment in upstream production, which would bolster opportunities for service companies, contractors, ensure enhanced security of supply to downstream plants, and drive higher government revenue.

Atlantic, renowned as one of the globe’s largest liquefied natural gas (LNG) producers, operates from fields situated in and around T&T, channeling output to its liquefaction facility headquartered in Point Fortin. The facility boasts four LNG trains, collectively capable of producing approximately 14.8 million tonnes of LNG annually. Notably, its fourth train stands as one of the world’s largest, with a capacity of 5.2 million tonnes per year.

Shell holds a majority stake in each train, with varying ownership percentages – 46% in the first, 57.5% in the second and third, and 51.11% in the fourth. Shell’s engagement in T&T, following its return and acquisition of British Gas, has notably spurred collaborative efforts with the government to fortify investments and expand gas production.

Shell’s current natural gas production in T&T has surged to 850 million standard cubic feet per day (mmscf/d), marking its highest reported level since reentering the market in 2016.

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