Business
Ryan Hamilton-Davis
NGC has signed a heads of agreement with Shell to start the pre-front end engineering design phase for the processing of Manatee gas through its Beachfield facility.
In a release Wednesday, NGC said the agreement sets the frame for technical and commercial work to enable further progress through this phase of the project, and strengthens the partnership between NGC and Shell. The agreement also sets the stage for further collaboration between the two companies.
The release added that the agreement is another milestone in meeting the country’s future demands for natural gas.
“NGC continues to collaborate with industry stakeholders and leverage the collective expertise and capabilities to sustain the sector,” NGC president Mark Loquan said.
“By working closely with Shell, NGC is actively participating in major growth projects that will significantly contribute to national development. The company will work to assure the integrity and capacity of our gas-related infrastructure as we remain steadfast in our commitment to provide a steady and reliable supply of natural gas.”
The release said through the agreement, NGC has strengthened its resilience in the face of a changing energy landscape, and is resolute in maximising value from TT’s energy resources, building a sustainable energy future.
TT and Venezuela previously had an agreement for exploration in the Loran/Manatee field, which straddles the border between the two countries, until 2018 when disagreements over the gas price and US-imposed oil sanctions caused the negotiations to fail.
Sanctions from the US also scuttled a separate project where TT was negotiating to buy gas from Venezuela’s offshore Dragon field.
Shell began negotiations with TT in February, last year, with the intention of producing content from the 2.7 tcf Manatee gas field with production hoping to begin as early as 2025.
Last October, Energy Minister Stuart Young said TT would access the natural gas reserves from the Manatee field after the Government and Venezuela agreed to de-couple the fields and “let us develop the Manatee side.” He estimated the Manatee field has approximately two tcf of natural gas while the Loran field, located in Venezuelan waters has about eight tcf.
He announced in the Senate that a production sharing contract with Shell had been approved. It was signed in November.
In a statement in Parliament on February 7, 2020, the Prime Minister said gas production from Manatee could start in 2025 at rates ranging from 270-400 million cubic feet per day.
