UK boosts business ties

August 27, 2024

Trade Commissioner for Latin America and the Caribbean (LATAC) Jonathan Knott, director Business Development of Musical Instruments of Trinidad and Tobago Co Ltd (MITTCO) Akua Leith, and deputy British High Commissioner Victoria White attended a business reception at the British High Commissioner’s residence.

At a Great Business Networking reception hosted by the British High Commissioner, Trade Commissioner for Latin America and the Caribbean (LATAC) Jonathan Knott says it is critical for the United Kingdom to boost business relations with Trinidad and Tobago. The goal is to reinvest in business relationships with Trinidad and Tobago and UK Export Finance can facilitate smoother financing for business collaborations.

“UK Export Finance is the UK’s export credit agency. In the last five years we’ve provided £14 billion of support for exports and international trade. You can get finance and insurance from the UK government,” according to its website.

Knott told business investors“My job is to increase the flow of business (between) UK, Latin America and the Caribbean. And in this case between the UK and Trinidad, (which) is especially important to the UK, now that we have left the European Union. Because we need to look to other places to do business…where can we invest or reinvest our business relationships. And in this case in Trinidad, it’s very, very much reinvest.”

He visited Trinidad and Tobago two years ago to get an idea of “what the environment was or what the horizons were and it felt good. I come back two years later and I see we’ve been successful in doing that….there are so many successful Trinidadian companies now partnering with British companies. There are so many really good British companies who are coming to Trinidad to be a part of this growing economy, for the first time in a while, the economy is consistently growing here and that’s really rewarding to come back and see.”

He reinforced the UK commitment to building meaningful connections with Trinidad and Tobago, highlighting the availability of UK Export Finance as a key support mechanism.

“It is an organisation who wants to make it easier, who wants to make financing more straightforward, less expensive so some of these relationships can happen, things which otherwise, without the support of the export finance, none of this would add up, that’s categorising wildly. So, that’s what this is all about, making things happen, which is what we are about.”

He stressed that this task is not only on his end but is more of a collaboration.

“Let’s work together to create those partnerships. Let’s work together to grow our economy, let’s work together to improve British (and) Trinidad and Tobago life and standards.”

He believes this avenue underscored how keen the UK is to make partnerships happen and to “make it as easy as is possible for this to happen”.

Knott is meeting members of the government to discuss some of the barriers to doing good business.

“Talking with them about the vision Trinidad has for its future, about its infrastructure, about how it can support its people and we are trying to identify, the team and I, how can UK companies contribute to that. How can we help Trinidad and Tobago realise the vision that it has for itself? We operate a little bit like a dating site, because we have a fantastic black book of brilliant British companies but we are keen to meet or to have opportunity outside but they don’t know too much about it. So, for them to know countries on this part of the world back to front, part of our job is to find out what the contribution they can make in this part of the world in Trinidad and Tobago and introduce them to the right people.”

The second part of his visit is to try and reach out to Trinidad private sector as well because growth and success is not about government, but rather about putting together the right companies.

“So that’s a lot of talking to people like yourselves, understanding what your vision for your own companies, your own commercial future is. To again see whether looking in our little black book there might be someone to help you do what you want to do, maybe we can identify something that is stopping you succeed. To help you overcome.”

Knott indicated an upcoming business forum London on November, 5 “which is all about Trinidad and Tobago in the UK and a lot of that is trying to get the UK companies to understand what the opportunities are in this part of the world and they come here and invest.”

Potentially the first step is taking a look at this economy to get a sense of what the opportunities are and also find local partners to work with. “Our hope is the source of that particular event where those connections can be made.”

Head of Export Finance Jesse McDougall, based in Huston, Texas with responsibility for North America and the Caribbean, said,

“My task is to find transactions where we can work together using UK government funding to do major infrastructure projects all the way through to the small…transaction. It’s a huge range of what we can do across a wide range of sectors. Giving examples of such projects financed in the Caribbean.”

McDougall said they recently funded a hospital in Guyana, a water desalination plant, low emission fleets of buses, airport upgrades, construction works. The organisation intends to do similar type projects in the region, reiterating that the UK is focused on increasing trade with T&T.

SME food producers will benefit from UK funding. West Indian entrepreneurs flee escalating high levels of endemic violent crime, homicides, kidnapping for ransom, extortion, fraud, armed robbery, grand larceny, theft , assault, gangs, drug and arms trafficking, terrorism, home invasion, VAW including rape and opportunistic offences by muggers, tricksters and pickpockets.

 

 

 

McDermott clinches Manatee gig from Shell

By LNG Prime Staff
August 12, 2024

Houston-based McDermott secured a contract from a unit of LNG giant Shell for its Manatee gas field development project offshore Trinidad.

Shell Trinidad and Tobago awarded the engineering, procurement, construction, installation (EPCI), hook up, and commissioning contract to McDermott, following successful delivery of the front-end engineering design, detailed engineering and long lead procurement service contracts for the project’s initial design and execution planning.

Under the contract scope, McDermott will design, procure, fabricate, hook up and commission a platform and jacket.The company will also provide design, installation, and commissioning services for a 32-inch gas pipeline that will connect the platform to a gas processing facility operated by Shell. The contract scope also includes design, procurement, installation, and testing services for a fiber optic cable.

McDermott clinches Manatee gig from Shell

Last month, Shell took the final investment decision for development of Manatee field to supply the Atlantic LNG export plant. The undeveloped 2.7 tcf gas field in the East Coast Marine Area (ECMA) in Trinidad will allow Shell to competitively grow its integrated gas business by building on development efforts in the ECMA, one of the country’s most prolific gas-producing areas. Manatee gas field will provide backfill for LNG producer Atlantic LNG. Increasing utilization at existing LNG plants is an “important lever” for Shell to maximize potential from existing assets.

In December 2023, Trinidad and Tobago signed a restructuring deal with Atlantic LNG, Shell, BP and NGC. The Point Fortin facility features four trains with a total capacity of 15 million tonnes per annum of LNG. Supply was curtailed due to dwindling domestic gas reserves. Atlantic LNG’s first train 1, idled since 2020 due to reduced gas supply, was maintained at a hefty loss of TTD300 million to taxpayers.

Shell is the operator of Manatee with a 100 percent working interest under the sub-Block 6D production sharing contract. The project will involve a normally unattended installation platform located in the ECMA acreage with eight development wells via a 110 km pipeline to the Shell-operated onshore Beachfield gas processing facility, for onward export to the Atlantic LNG facility, and to the National Gas Company of Trinidad and Tobago for the domestic gas market. Manatee is expected to start production in 2027. Once online, Manatee is expected to reach peak production of about 104,000 barrels of oil equivalent per day (boe/d) or 604 MMscf/d.

 

 

 

McDermott to construct Shell Manatee platform

August. 12, 2024

Shell awarded McDermott an EPCI contract for the Manatee gas field development,  60 miles (100 km) offshore.Previously, McDermott had completed the FEED, detailed engineering and long lead procurement service scope for the project’s initial design and execution planning.

Under the new award, the company will design, procure, fabricate, hook up and commission a platform and jacket. It will also perform design, installation and commissioning services for a 32-inch gas pipeline that will connect the platform to a Shell-operated gas processing plant as well as perform design, procurement, installation and testing services for a fiber-optic cable.

 Last

Last month, Shell Trinidad and Tobago took FID on the Manatee offshore gas field development in the East Coast Marine Area of Trinidad and Tobago.

Mahesh Swaminathan, McDermott’s Senior Vice President of Subsea and Floating Facilities, highlighted: “This award leverages our unique, integrated EPCI capabilities and legacy of engineering excellence and innovation to successfully deliver large offshore platforms and complex subsea infrastructure worldwide. The Manatee project builds on our track record of successful project execution for Shell and exemplifies our commitment to building energy infrastructure required to meet demand.”

Shell, which set its cap on growing its LNG business by 20-30% by 2030, compared with 2022, with LNG liquefaction volumes planned to increase by 25-30%, relative to 2022 made a final investment decision for the Manatee gas development project in July 2024.

 

 

 

Natural gas output rises

2024, 09/03

The Ministry of Energy and Energy Industries (MEEI) reported Natural gas production increased in July and August, after output plunged in June, due to maintenance work on offshore gas fields.

Responding to recent reports about natural gas production in T&T,

“In this regard, the MEEI advises that natural gas production for the month of June 2024 was impacted by the conduct of maintenance activities by three of the major upstream gas producers resulting in a 22 per cent reduction in production when compared to the previous month. This decrease in natural gas production was transparently reflected in the Consolidated Natural Gas Monthly Bulletins for the period January-June 2024 which is published on the MEEI website, www.energy.gov.tt.”

Disruptions were expected. Maintenance activities, undertaken by major energy players bpTT, Woodside and Shell were planned a year in advance and are an essential component of compliance with government regulations. Among these activities were turnarounds which are proactive measures to ensure the safety of personnel on the respective facilities and the optimisation of processes aimed towards improving production and overall efficiency.”

With the decrease in production in June, the average daily production for the period January to June 2024 stood at 2.47 bcf/d (billion cubic feet per day). Production was highest in February at 2.73 bcf/d.

The MEEI advises that the decrease in natural gas production was sheltered within the natural gas value chain by planned turnarounds at Train IV at Atlantic LNG, Point Lisas Nitrogen and the Urea plant at Nutrien Ltd for the month of June 2024.

“With the completion of these said activities, preliminary data shows that natural gas production for the month of July 2024 increased to 2.3 bcf/d and further increased to 2.7 bcf/d in August with production for Q4 2024 projected to average at 2.5 bcf/d.”

 

 

Proman: Trinidad and Tobago potential as methanol bunkering hub

18 August

On August 16,  Proman, a major methanol producer, said there is potential for Trinidad and Tobago to be a methanol bunkering hub.

After a tour of Proman’s plants and the methanol-powered ship Stena Prosperous in Point Lisas, Matthias Classen, the Swiss company’s global shipping director, told media the country’s strategic location works in favour of the hub.

The Stena Prosperous refuelled in Point Lisas on August 16 and the sister vessel Stena Pro Patria is expected to refuel in the coming days.

“You have the Gulf of Paria, which… usually really has good weather and a smooth sea, which you need for bunkering operations. And it’s right on the main trade line… in between South America and the US, which is a major trade line. Also, ships going from South America to Asia, they’re literally passing Trinidad. So the deviation to go east of Trinidad or west of Trinidad is minor. It’s not even really a deviation. So it’s a very attractive location.”

Director of marketing and logistics Hanna Sukhu-Maharaj added: “And, we’re within three or four days away from the Panama Canal which is probably the most utilised canal globally. So when you think about where we’re positioned, it’s really ideal for our country.”

Methanol is widely available at over 120 ports globally, including Point Lisas, which is being used regularly to refuel ships, having supplied 12,500 (MT) metric tonnes of its locally-made methanol so far for 2024 with 2,100 MT in August alone. Citing data from DNV, a classification society and recognised advisor for the maritime industry, Proman said 300 methanol-fuelled vessels are expected on the water by 2027 (not including bunker barges or retrofits) and over 70 have been ordered so far in 2024 alone.

Managing director of operations, Aleeya Ali said this also underscored the scope of the available market.

“The huge increase in orders for methanol-fuelled ships and our regular refuelling here in Trinidad, shows the viability of methanol as a marine fuel and the potential of Point Lisas and Trinidad as a bunkering hub. We are proud to not only export Trinidad-produced methanol, which supports jobs, the local economy and our communities but to also put Trinidad on the map as a hub for cleaner, alternative marine fuels.”

Apart from its potential to bring Trinidad into the spotlight, Proman said when used as a maritime fuel, methanol can offer reductions in greenhouse gases entering the environment. When used as a marine fuel, all forms of methanol virtually eliminate particulate matter and sulphur oxides and cut nitrogen oxides by up to 80 per cent during combustion, compared with petroleum-based fuels.

On the Stena Prosperous, the immaculately clean engine room was evidence of the reduced emissions of methanol fuel. To further highlight this, Proman said the vessel departed Singapore in May and stopped in Indonesia, Brazil and the US before arriving in Trinidad. Using methanol, carbon dioxide emissions were 31 per cent less than what would have been created for the voyage had it used traditional very low sulphur fuel oil. The 49,400 dead weight tonnes Stena Prosperous is one of six methanol-fuelled tankers commissioned by Proman and Stena Bulk in 2019 and delivered between 2022 and January 2024. It has 18 cargo tanks and consumes 40 to 60 MT per day.

Proman has the capacity to produce 4 million MT of methanol annually. Of its 17 petrochemical plants globally, 14 are in Trinidad where it employs at least 1,100, the majority of over 2,000 employees. Proman contributed US$11 billion to the economy, US$8.4 million in corporate social responsibility investments in communities between 2014 and 2023 and US$5.1 billion in capital investments.

 

 

Proman: ‘Bunkering can create downstream value’

21 August

Integrated petrochemical company, Proman TT believes rising demand for methanol for marine fuel and the island’s strategic location lay the foundation for a methanol bunkering hub which could benefit citizens. The leading methanol producer in the petrostate delivered over 12,500 metric tonnes (MT) of methanol as fuel for ships through the Point Lisas port over the last 12 months and 2,100 MT in August.

The Swiss company is the second largest global producer of methanol, making up to 4,000,000 MT annually across its five plants. It operates 14 of its 17 world-scale petrochemical plants at Point Lisas Industrial Estate Trinidad where it invested over 30 years in the energy industry. It also produces ammonia, urea ammonium nitrate and melamine, supported by its upstream company, DeNovo, which extracts natural gas from the offshore Iguana and Zandolie fields in the Gulf of Paria.

Methanol Holdings (Trinidad) Limited (MHTL) owns 5 methanol plants and an AUM (ammonia, urea ammonium nitrate, melamine) complex comprising 7 individual plants, managed by Proman Operations teams. As a leading player in the energy industry, Proman and MHTL continue to pursue avenues for growing production and exploring new uses and markets for its products. Across its 5 methanol plants, MHTL has a total rated annual capacity of over 4 million metric tons. In 2005 M5000 was added to the portfolio, one of the largest stand-alone methanol plants in the world.

Proman and MHTL focus on maintaining global competitiveness while delivering the highest standards for efficiency, reliability, safety and environmental management in the Swiss tradition. The company is a pioneer of methanol as marine fuel. In 2019, it partnered with Stena Bulk to create six 49,900 dead-weight tonne tanker ships delivered between 2022 and January 2024.

Its latest vessel, Stena Prosperous, bunkered at Point Lisas on August 16. Managing director, operations, Aleeya Ali said the investment in its shipping fleet has taken locally manufactured gas to the US, Asian and European markets but, more importantly, encouraged its use as a marine fuel. If realised, director of marketing and logistics, Hanna Sukhu-Maharaj said the country would reap the benefits.

“You have the opportunity of, first and foremost, creating downstream employment. If vessels are being called to Trinidad – and it’s not just employment (through) the people who are physically bunkering the vessel, you have ship handlers, dry docking.”

Although she admits a draft of 11.5 metres at Pt Lisas would not facilitate berthing of vessels like cruise ships, she said Proman is experienced with workarounds such as bunkering via an offshore barge or a ship-to-ship transfer.

“If our ship is going out and passing by, once we have the necessary approvals, governmental and customs etcetera, we can do bunkering directly from our ships onto the vessels. It’s really about creating a downstream value.”

Elaborating on indirect benefits, Ali said: “In the community, the entire service industry, expertise, people, jobs and an entire economy built around Pt Lisas, is not just the direct plant and the direct employer. It’s a multiplier effect. When you build the industry, it has a widespread effect.”

Proman’s global shipping director Matthias Classen said Trinidad’s strategic geographic location augurs well for attracting bunkering demand. According to the director of operations, the global demand is growing, with 300 methanol-fuelled vessels expected to be in the water by 2027. However, TT’s natural gas production has been in decline, with Proman plants adapting to natural-gas shortages. Ali admitted the M1 plant on the estate was currently idled. With these factors in mind, Proman continued investment.

Ali said: “The product is vital, the products that we make. And so it is very important , not just as Proman, for us as Trinidad, to continue that investment. It is a legacy the country has built, not just in terms of the contribution of Point Lisas (and) the downstream sector to the economy. ..it is…in so many facets of direct and direct contribution to the economy, the employment, taxes, foreign exchange, revenues.

So it is our national interest, and it is the work of the government, the upstreamers and the downstreamers to continue the natural-gas value stream here. That is why so much effort is being placed by the government and the upstream to secure the long-term deals. So much effort is being placed by Proman specifically because we were the ones to monetise these small fields. So we are really looking to exploit all of the opportunities to ensure that the very important products that we make, and where Trinidad is positioned on the global market, continue.”

Additionally, the company is working with the government on how it can increase its natural gas supply by accessing stranded gas fields where possible, like what was done with DeNovo. The company also supports the government’s efforts to secure a long-term supply of natural gas.

Green light from chambers

The Energy Chamber and TT Chamber of Industry and Commerce (TT Chamber) welcomed the idea of TT becoming a potential bunkering hub. Energy Chamber CEO and president Thackwray (Dax) Driver, said the country is well placed to take advantage of this business opportunity.

 

“We are well located geographically, close to major shipping lines and with a fantastic natural harbour in the Gulf of Paria. There are also many world class support services available for the marine industry, given our long history in the offshore oil and gas industry. Methanol is a rapidly growing marine fuel and, as a major global methanol producer, TT has the opportunity to play a significant leading role in the development of this industry.

In the first phase, methanol is being used as a fuel mainly for methanol tankers, but this will grow as other vessels are either retrofitted or newly built to use methanol as fuel.”

In addition to selling methanol or other low carbon fuels, there are spin off economic benefits if vessels visit Trinidad to refuel, including sale of other supplies and maintenance services. Low carbon fuel bunkering is a new and growing industry that TT should be actively pursuing.

The TT Chamber asked why the country lacks legislation in place to allow for methanol fuel blending in gasoline for cars.

“This would assist in lowering TT’s carbon footprint, whilst also potentially saving its forex by purchasing the methanol in TT dollars. We naturally have a first mover advantage with already bunkering methanol fuelled ships. This will obviously have a positive impact on the local economy, including providing employment opportunities, of which the chamber is fully supportive.”

European and American companies continue to be bulwarks and beacons of the economy. Divestment of state enterprises will offer hope for a dynamic, productive, prosperous, disciplined and tolerant society embracing a cosmopolitan past which spurred progress and success for all. New opportunities can turn the tide of crime engulfing the former paradise, with kidnap for ransom, extortion, robbery and burglary as homicides exceed 400 for the year and citizens are terrified to leave their homes, risking their lives daily from raids and arms.

 

 

 

Proman scales up methanol bunkering

August 19, 2024, by Ajsa Habibic

Methanol producer and supplier Proman is highlighting the potential of the port of Point Lisas, Trinidad and Tobago, as a methanol bunkering hub with 2,100 MT of methanol to be delivered to ships in August 2024.

Stena Prosperous, a methanol-powered tanker owned by Proman’s joint venture (JV) with Stena Bulk, was refueled in the port of Point Lisas on 16 August after arriving in Trinidad and Tobago following the naming ceremony in Singapore. As reported, having been bunkered in Singapore with a 20/80 green/conventional methanol blend, the journey to Trinidad delivered CO2 savings of 31% compared to the same voyage operated on very low sulphur fuel Oil (VLSFO).

 

 

 

Methanol-infused fuel

22 August

Energy Minister Stuart Young told delegates at the Methanex bunkering demonstration he plans to advocate for changes in the specifications for gasoline products coming into TT.

“(This ensures) our partnerships with two of the largest methanol producers in TT and two of the largest exporters of methanol will continue.”

The Transportation industry, which uses gasoline, may also have access to cleaner fuels as he hopes to introduce a percentage of methanol into the fuels.

Part III of the Petroleum Act states the President may make regulations necessary for several purposes, including the manner in which tests and measurements may be applied to petroleum and petroleum products for any purpose.

A study by the Methanol Institute – the trade association for the global methanol industry – said methanol has many fuel properties that make it a cleaner burning fuel in gasoline engines. This includes oxygen for cleaner fuel combustion, the ability to reduce carbon intensity and no sulphur contamination which can damage cars. Government decided to enter the shipping industry by supplying methanol and liquefied natural gas (LNG) as alternatives to marine fuel for shipping vessels.

“We are going to be a leader in the region because we have the products in both LNG and Methanol. TT will be at the forefront to ensure that we have the competitive advantage in the diversification towards a maritime industry by supplying these two alternative products.

If we in TT can provide these types of fuels, and in particular methanol, it is going to encourage people to move their ships to methanol fuel and to know that we are perfectly positioned here in TT to provide that.”

Methanex partnered with the National Energy Corporation, Paria Fuel Company, Uni-Tankers, Green Marine, Bunker Holding and PRC transport company NYK, for the demonstration at the port of Point Lisas. The Uni-Tankers vessel, Alsia Swan, fuelled the Seymour Sun, a methanol-powered vessel operated by Waterfront Shipping and owned by NYK.

Methanex vice president of global gas, Anders Ekvall, said methanol can be used not only as a feedstock in the production of other chemicals but as a clean alternative fuel.

“The methanol bunkering operation we are showcasing today represents a significant step toward decarbonising the maritime industry by demonstrating that any methanol dual-fuel ship can come to TT and safely receive methanol. Methanol is a safe, proven, cost-competitive marine fuel for the commercial shipping fuel that can meet and exceed current and planned emission regulations.”

 

 

Miracle Methanol

Energy Minister Stuart Young greeted Methanex Trinidad Ltd managing director and president Colin Bain, at Methanex’s live methanol bunkering demonstration in Port of Spain on August 21.

This month, Methanex – which has a 63.1 per cent interest in a 1.8 million-tonne-per-year methanol production facility and a history of engagement with local authorities and bodies, including the National Gas Company, partnered with the National Energy Corporation, Paria Fuel Company, Uni-Tankers, Green Marine, Bunker Holding and PRC transportation company NYK for a bunkering demonstration at Point Lisas.

The use of low-carbon methanol as a bunkering fuel appears prominent in the energy-sector zeitgeist. On August 16, the Stena Prosperous, tied to methanol producer Proman TT, bunkered at Point Lisas. At a media tour, company officials suggested the increasing demand for methanol for marine fuel and TT’s strategic location means the country could become a methanol bunkering hub.

The company has experience with methanol as marine fuel. In 2019, it partnered with Stena Bulk to create six 49,900 dead-weight tonne tanker ships delivered between 2022 and January 2024. Managing director, operations, Aleeya Ali, said,

“We are really looking to exploit all of the opportunities to ensure that the very important products that we make, and where Trinidad is positioned on the global market, continue. It is very important for us, not just as Proman, for us as Trinidad, to continue that investment. It is a legacy the country has built, not just in terms of the contribution of Point Lisas (and) the downstream sector to the economy. It is in so many facets of direct and indirect contribution: employment, taxes, foreign exchange, revenues.”

The implications of this kind of interest could be far-reaching.

Energy Chamber CEO and president Dr Thackwray Driver this month urged legislation to allow for methanol fuel blending in gasoline for cars.

“Methanol is a rapidly growing marine fuel and, as a major global methanol producer, TT has the opportunity to play a significant leading role in the development of this industry. We are well located geographically.”

Energy Minister Stuart Young is putting his faith in methanol. At an industry event in Port of Spain, on August 21, the minister was evidently won over by the chemical compound’s potential. He announced plans to advocate in Cabinet for changes in the legal specifications for gasoline products coming into TT.

“If TT can provide these types of fuels, and in particular methanol, it is going to encourage people to move their ships to methanol fuel and to know that we are perfectly positioned here in TT.

We are going to be a leader in the region because we have the products in both LNG and methanol. TT will be at the forefront to ensure that we have the competitive advantage in the diversification towards a maritime industry by supplying these two alternative products.”

The Cabinet should certainly weigh the need for legislative change to stimulate diversification, while paying attention to regulation and the goal of sustainable development, instead of futile obsession with decolonisation and provocative monoculture.

 

 

Waterfront Shipping wraps up STS methanol bunkering

August 26, 2024, by Fatima Bahtić

Waterfront Shipping, a subsidiary of Methanex Corporation and pioneer of methanol marine fuel, completed its first ship-to-ship (STS) methanol bunkering demonstration in the region at the Port of Point Lisas in Trinidad. This milestone was achieved in collaboration with the National Energy Corporation of Trinidad and Tobago, Paria Fuel Trading Company, NYK, Green Marine, Bunker Holding, Uni-Tankers and Dan Bunkering.

Methanex Corporation stated the demonstration further proves methanol is a safe and simple-to-handle cleaner fuel that provides a future-proof pathway to a low-carbon economy. The bunkering positioned Trinidad and Tobago as a key player in decarbonizing the maritime sector and established Point Lisas as a preferred destination for future methanol refueling operations. Paul Hexter, President of Waterfront Shipping, said,

“This demonstration in Trinidad and Tobago is another step in supporting the shipping industry’s transition to lower-emission fuels.”

Dr Vernon Paltoo, President of the National Energy Corporation of Trinidad and Tobago, added, “By successfully conducting the first methanol ship-to-ship bunkering demonstration in the region, we have proven that our world-class maritime infrastructure is fully capable of supporting the energy transition,”

Methanex said, as a cleaner-burning marine fuel, conventional methanol already presents a pathway to decarbonization, with further innovations in bio-methanol offering vital solutions for the industry to achieve climate neutrality. It meets the IMO pollutant emissions regulations:

1. 1. 1. reducing SOx by 99 percent,
      2. NOx by up to 80 percent and
      3. particulate matter by 95 percent  -compared to heavy fuel oil.

Methanol is available at over 125 of the world’s largest ports, and its use as a marine fuel can help the shipping industry meet increasingly strict air emissions regulations. In 2023, Cajun Sun, operated by Waterfront Shipping and chartered from MOL, completed the first-ever net-zero voyage fuelled by bio-methanol.

MOL took delivery of the Cajun Sun, a 50,000 dwt methanol carrier, from its compatriot shipbuilder Minaminippon Shipbuilding in 2016. The vessel is equipped with 2-stroke dual-fuel low-rev main engine capable of running on methanol.

 

Methanex CEO anticipates ‘seamless transition’

14 August

Outgoing president of the National Gas Company, Mark Loquan and Colin Bain, managing director & president at Methanex Trinidad, signed the new Gas Sales Contract (GSC) for the supply of gas to the Titan methanol plant on the Point Lisas Industrial Estate (PLIE) in October 2023.

President and chief executive officer of Methanex, Rich Sumner anticipates a “seamless transition” as the corporation plans to restart its smaller Titan methanol plant and mothball its Atlas plant by the middle of next month.

This changeover is not expected to incur any additional costs. Methanex has stated that it is planning for the Titan restart with minimal capital required. Sumner provided the update about Methanex’s operations in the country during the corporation’s latest investor call for the quarter ending June 30, 2024.

The Titan plant had been idled since March 2020. However, last October, Methanex announced that it had signed a two-year natural gas agreement with the National Gas Company of Trinidad and Tobago (NGC) to restart its wholly owned, Titan methanol plant this September.

Sumner said then that the two-year term of the Titan contract offered by the NGC reflected the “challenging near-term gas supply and demand situation in the country.”

The Titan plant has the capacity to produce 875,000 tonnes of methanol a year.

Simultaneously, Methanex announced its intention to idle the Atlas methanol plant, in which it holds a 63.1 per cent economic interest, due to the expiration of its legacy 20-year natural gas agreement in September 2024. Atlas has the capacity to produce 1,085,000 tonnes of methanol a year. With the shutdown of Atlas and the restart of Titan, its overall production in this country will be reduced by approximately one million tonnes annually. During the most recent investor call, Nelson Ng, an analyst with RBC Capital Markets asked Sumner:

“First question is on Trinidad in terms of Titan restarting and mothballing Atlas. Now that you’re heading up to that point, should we expect any kind of one-time costs to impact EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) in Q3? And then, also is the gas contract, that current one that’s expiring, does that expire like in early September or at the end of September?”

Sumner responded:

“ In terms of cost, you shouldn’t expect any cost, and we are planning this to be quite a seamless transition from Atlas to Titan. So, we are not expecting a lot of downtime or periods where we’re not producing at all in Trinidad. And then, when it relates to gas contracts, you can think mid-September timeframe for the changeover there.”

Ng also inquired about potential write-downs or outstanding debt related to Atlas in the coming months.

“No debt. And when we think about the asset values, we look at Trinidad as a group and that’s something we always review and don’t think we’re going to point towards any asset write-downs at this time. But we do look at—these assets are —they’re older assets, so we don’t have a ton of book value associated with them —but that’s something we’ll look at as we look at our accounts each year,” Sumner said.

Sumner said that during the quarter, Methanex experienced a couple of unplanned outages due to issues with its air separation unit, which required some maintenance work. For the quarter, Methanex’s global average realised a price for methanol was US$352 per tonne, an increase of US$9 from the previous quarter.

“Through the first part of the quarter, methanol markets tightened with increased demand outpacing supply, leading to a significant global inventory drawdown and increasing methanol prices.”

Sumner said toward the end of the quarter, Methanex recorded improvements in methanol supply and inventories globally, although markets remained “quite tight.”

“Looking ahead to the third quarter, we expect to see continued tight methanol markets. We’re seeing healthy demand growth across all traditional and energy-related downstream sectors, with (methanol-to-olefins) MTO operating rates influenced by the availability of supply. We anticipate this increasing demand will be met by increased operating rates in the industry as well as new supply from G3 (Geismar 3 located in Louisiana), which will be partially offset by our supply reduction in Trinidad in September when we shut down the Atlas and restart Titan.

Additionally, the 1.8 million tonne plant in Malaysia has announced it will be starting in 2024. As always, we continue to monitor the macroeconomic environment and its impact on global methanol demand,” he said.

According to Methanex’s financial results, T&T produced 489,000 tonnes of methanol for the two quarters ended June 30, 2024.   This represented a 3 per cent decrease from the 504,000 tonnes produced during the corresponding period last year.

“Atlas produced 231,000 tonnes (Methanex interest) in the second quarter of 2024 compared to 258,000 tonnes in the first quarter of 2024.”

Methanex’s overall production for 2023 was 1,074,000 tonnes

Methanex faces the highest statutory tax rate in T&T compared to other countries.

“We earn the majority of our income in the United States, New Zealand, Trinidad, Chile, Egypt and Canada. Including applicable withholding taxes, the statutory tax rate applicable to Methanex in the United States is 22 per cent, New Zealand is 28 per cent, Trinidad is 38 per cent, Chile is 35 per cent, Egypt is 30 per cent and Canada is 24.5 per cent.

We accrue for withholding taxes that will be incurred upon distributions from our subsidiaries when it is probable that the earnings will be repatriated. As the Atlas entity is accounted for using the equity method, any income taxes related to Atlas are included in earnings of associate and therefore excluded from total income taxes but included in the calculation of Adjusted net income,” Methanex stated.

Methanex reported a net income attributable to its shareholders of US$35 million for the second quarter of 2024, compared to US$53 million in the first quarter of 2024.

“Net income in the second quarter of 2024 was lower compared to the prior quarter primarily due to lower sales of Methanex-produced methanol and the negative impact of the mark-to-market portion of share-based compensation due to changes in Methanex’s share price, offset by a higher average realised price and by the one-time impact of the cost of the ineffective portion of natural gas hedges at our Geismar site recognized during the first quarter of 2024,” it stated. Methanex returned US$12.5 million to shareholders through regular dividends during the second quarter.

“We ended the quarter with US$426 million in cash, or approximately US$390 million in cash excluding non-controlling interests and including our share of cash in the Atlas joint venture.”

 

 

 

 

Minister meets ALNG executives

Minister of Energy Stuart Young met Atalntic LNG executives at the energy ministry on August 19. Young discussed the major accomplishments of Atlantic LNG from 2021-2024 with CEO Ronald Adams and chief operating officer Jean Andre Celestain.

Adams reported that the implementation of the company’s five-year strategic plan was proceeding apace and officially introduced Celestain as the CEO designate, effective October 1. Atlantic LNG was restructured in 2023, increasing government shareholding through the National Gas Company (NGC). The restructuring, led by the Minister, was an unprecedented move, which has been received well and commended.

 

 

 

Restructuring strengthens Atlantic – at colossal cost

2024. 08/07

Outgoing chief executive officer, Ron Adams declared while restructuring of Atlantic LNG was challenging, it is now better poised to run at optimum levels, deliver gas in the future and keep up with the tough global competition.

The restructuring agreement took effect in December 2023, resulting in one company with three shareholders—bpTT with 45 per cent, Shell 45 per cent and the National Gas Company Ltd (NGC) with 10 per cent—a change from each of the four trains having different ownership structures.

Adams was seconded by Shell in 2021 for the position of CEO at Atlantic, starting during the COVID-19 pandemic, for a three-year period, which ends on September 30. His replacement will be bpTT’s vice president of Transformation, Andrew Celestin who will start on October 1, his second time at Atlantic as he was the chief operating officer, before returning to bpTT.

Adams said every three years there will be a rotation of CEO’s at the LNG company between bpTT and Shell.

While he could not, at this time, say exactly where he is going, Adams said he will remain within the Shell group and his new position would not likely be in this country. There were many discussions surrounding Train I and its future and staff were already considering reorganising, a conversation that started a couple of years before he took up the position of CEO.

“I felt that to get the staff to align and to focus on its future, to create a new strategy for Atlantic that takes into consideration the global imperatives of an energy transition, a world that is moving quickly towards digitalisation and artificial intelligence, it was important that we do a couple of things. One is to prepare the organisation for that future.So, I took the tough decision to deal with the Train I issue and to get the staff to organise it; to recognize what is the forward pathway for Atlantic with respect to its future trains, and also to set up that strategy for the future.”

With the reorganisation of the company, he had the full support of the entire leadership team as management was extremely transparent with organisation.

“.., we laid out the plan, we gave employees opportunities to do other jobs, because when you think about it, you have one asset, you could easily find yourself stuck in one job for years. But I think we conducted it as best as we could. I think the fact that we have such an energised workforce right now speaks to how we would have conducted that reorganisation.”

The key tenets of the restructuring achieved simplification of the structure, as it’s now one unitised company, which allows the natural gas liquefaction company to be more efficient. With reduced gas supply, the company is now able to move gas between the three trains seamlessly without having to deal with complex commercial arrangements.

Another important tenet of the restructuring is that it would allow third-party access to the facility. This would encourage continued investments in the upstream market.   In terms of how many workers lost jobs, Adams said it was between five and 10 per cent, with a staff of 600.

However, any restructuring can be emotional and comes with challenges, but he assured that everything was done transparently. He said it was the best time to embark on such an exercise, to get the organisation focused and ready to receive more gas.

“We need to find ways to increase the level of gas supply in the country. Yes, we’re looking at the deep water. We’re looking at maximising water in shallow areas, both offshore and on land. But there’s a significant opportunity with cross-border opportunities. So we have to make sure that when that gas does become available, the asset of Atlantic is ready to receive it and run efficiently and effectively.

This is why Atlantic is currently undergoing a multimillion-dollar upgrade to its equipment, which is about 25 years old and the company has embarked on an asset-integrity campaign, which is being done strategically.

“A lot of times the only way that we can do significant maintenance work and significant asset integrity work is by taking the plant down. But when the plant is down, you can’t receive the gas. We’ve come up with strategies that allow us now to maintain that facility, to upgrade the facility with a running plant. It’s a campaign that’s probably going to go on for the next three years or so. And so, by the time we start getting extra gas from Manatee and some of the other projects that are progressively being moved on, we will have significantly improved the integrity of the asset.”

Safety is key
He mentioned things that can still be done better within the industry, one being safety. Pointing to the Paria divers tragedy, he said safety is a continuing journey and the ball should not be dropped.

“Energy companies should never get comfortable with their safety performance. We need to continue to learn all the lessons that we can from incidents, learn from each other upstream, midstream and downstream and continue that degree of collaboration. So collaboration is not just important to produce oil and gas, the collaboration is important to understand technology and what is available. Lessons need to be learned, so that at the end of the day we don’t ever have a repeat of those kinds of incidents.

Asked whether Shell’s investment in Atlantic has proven to be profitable, Adams said

“We do have a bit of what we call a Chinese wall in this business that separates myself from those active discussions. The fact that Shell continues to invest in the upstream end and other projects we are working on on the east coast speaks to the fact that Shell sees opportunity here and there’s room for continued investment and it’s a business that makes sense.”

Looking back at his tenure at Atlantic, Adams said it was a great opportunity and he was happy to help re-energise the company to move it to its full potential and compete with the global competitors.

Atlantic’s 25th anniversary
Atlantic is celebrating its 25th year since its first shipment of LNG in April 1999 on the LNG carrier Matthew, a huge achievement. Recently the company shipped its 4,800th cargo and is moving towards its 5,000 mark.

“Atlantic employees were here from that very first cargo and they’re still here. Recently, we embarked on a reorganisation of the Atlantic staff. And I thought it was timely to do that for a couple of reasons.”

Atlantic is commemorating its anniversary through various initiatives for its communities, stakeholders and employees, including the Atlantic Scholarship Programme to support educations of the children of its staff

NGC is ripe for divestment to boost revenue for myriad national needs resulting from comprehensive government duplicity and mendacity and lack of transparency, accountability, legislative clarity and other aspects of governance.

December 5, 2020 Restructuring cost taxpayers a colossal TTD 300 million.

State-owned National Gas Company (NGC) took responsibility for the operations of Atlantic LNG’s Train 1, including spending a fortune for its Turnaround (TAR) and finding the gas to run the plant, was described by industry insiders as a major gamble that is likely to lead to bad outcomes for the NGC and taxpayers of T&T.

Already the state-owned company is reporting massive losses and chairman Conrad Enill admitted that losses are expected to continue for the rest of the calendar year. NGC accounts for the last financial year showed that the company was burning cash with money being taken out of the business, leaving even less for investment.

Multiple sources reported that the NGC, which owns only ten per cent of Atlantic’s Train 1, agreed to spend $300 million on refurbishment of the plant Turnaround because bpTT and Royal Dutch Shell which own 80 per cent of the plant were not prepared to spend money on it when they had no gas to supply.

Plipdeco profits rose to $41.3m
Point Lisas Industrial Port Development Corporation Ltd (Plipdeco) recorded $41.3 million in profits after tax for the six months ended June 30. In unaudited consolidated financial statements, published on the TT Stock Exchange website on August 5, Plipdeco reported a $7.5 million increase in profits compared to the same period in 2023, when the company earned $33.8 million in net profits.

Financial results showed that it earned $185.3 million in revenue for 2024, $10.9 million more than it did the year before.

Gross profit for 2024 was $126.7 million compared to $116.8 million for the same period in 2023. Operational costs reduced revenue to an operational profit of $49.6 million for the year, compared to $40.1 million for the same period the year before. Plipdeco is a public company, in which the government has 51 per cent ownership. Core activities include port operations, logistics services, warehousing and industrial estate management.

In July, The Caribbean Information and Credit Rating Services Ltd (CariCRIS) reaffirmed Plipdeco’s assigned credit ratings of CariA+ on the regional and ttA+ on the national rating scale, indicating a good level of creditworthiness of this obligor, adjudged in relation to other obligors in the region.

“Plipdeco is expected to remain well-capitalised and comfortably service its debt obligations. Its ratings continue to reflect its strong market position in port operations and industrial real estate management in TT, enhanced by a diversified product offering.”

 

 

 

NGL reports major turnaround

15 August

TT NGL Ltd (TTNGL) revealed an “outstanding turnaround” in the first half of 2024, compared to the same period last year, posting an after-tax profit of $46.7 million in its latest unaudited financial statements.

Chairman Joseph Ishmael Khan disclosed that the company lost $2.8 million for the corresponding period in 2023, an impressive year-on-year improvement of $49.5 million.

This was reflected in earnings of $0.30 per share, up from a loss per share of $0.02 for the corresponding period. TTNGL had $139.1 million in cash at the end of June, up from $113 million in 2023. The driving force behind TTNGL’s strong performance was the enhanced profitability of its investment in Phoenix Park Gas Processors Ltd (PPGPL).

This achievement was primarily attributed to increased production of natural gas liquids, higher sales volumes and improved NGL prices at Mont Belvieu (Texas). Enhanced NGL production was facilitated by a 4.4 per cent increase in natural gas volumes processed at Point Lisas in the first half of 2024, compared to 2023. Moreover, the gas stream’s NGL content saw a significant rise of 15.5 per cent over the previous year, a result of deliberate efforts by the (National Gas Company) to enrich gas supplies.

NGL production saw a notable increase even when accounting for the extended plant downtime experienced in the first half of 2023. NGL volumes delivered from Atlantic LNG also increased by 3.2 per cent over the comparative period in 2023. NGL prices rose considerably – 11.5 per cent – compared to last year, driven mainly by increased global demand and strategic positioning by market participants for arbitrage opportunities.

The combination of higher NGL production and increased sales revenues, supported by improved NGL product prices, underscores PPGPL’s strong operational safety and its market leadership as the preferred NGL marketer locally and regionally. Moreover, PPGPL has maintained high levels of operational efficiency within its processing plants, complemented by a strong commitment to safe operations and effective cost management.

The company remains ever optimistic about the positive price forecasts, while PPGPL continues to monitor market uncertainties and implement value-added strategies. PPGPL is unwavering in its commitment to strategic growth, prioritising the following: safe operations; high plant reliability and availability; meeting customer needs and sustaining market presence across all territories. These efforts are critical to delivering long-term shareholder value.

 

 

bp, EOG plan first Coconut gas in 2027

August 28, 2024 (WO)

bp Trinidad and Tobago (bpTT) and EOG Resources Trinidad Limited agreed to partner on the Coconut offshore natural gas development,   a 50/50 joint venture with EOG as operator. The final investment decision has been taken by the joint venture partners and first gas is expected in 2027.

bpTT discovered Coconut field in the Columbus basin in 2005 in water depth of 260 ft. Coconut is the latest development being delivered through a joint venture between bpTT and EOG.

Previous developments were:

EMZ – 2011
Sercan – 2016
Banyan – 2017
Mento – to be brought online 2025

Key operations of bptt involve approximately 680,000 acres off Trinidad’s east coast. bp Trinidad and Tobago operates 16 offshore platforms and two onshore processing facilities

David Campbell, bpTT president said, “This partnership will allow us to accelerate production from the Coconut field, while giving us the space to progress our Ginger field development and other gas growth opportunities, at a faster pace. We are accelerating gas growth while remaining focused on returns to achieve a higher value Trinidad business – one with clear line of sight to material high margin growth over the next several years.”

bpTT said the partnership for the Coconut development is part of the company’s strategy to increase its gas business and unlock the energy future of Trinidad and Tobago.

“Strategic partnerships are an important component of this strategy, as they allow bpTT to increase the competitiveness of its projects, accelerate resource progression, grow its business and continue to deliver value to bp and to the country.”

 

 

 

Hydrocarbons flow into new Perenco pipeline offshore

August 27, 2024, by Melisa Čavčić

Perenco Trinidad & Tobago (Perenco T&T), a subsidiary of Anglo-French oil and gas player Perenco, started introducing hydrocarbons into its new underwater pipeline, recently installed to start a new chapter at its fields off the southeast coast of Trinidad, as part of efforts to revamp facilities related to these fields. Perenco is the operator of the consortium that manages the TSP fields.

 

TSP fields- Repsol
Introduction of hydrocarbons into the 37-kilometer 10” pipeline from the Teak Alpha production platform at the Teak, Samaan, and Poui (TSP) fields to the Galeota terminal represents the end of the broad-scoped project entailing extensive multidisciplinary teams.

Delivery of the new pipeline follows completion of the Samaan gas workover campaign, which enabled Perenco to boost its gas arsenal. The European company intends to up the oil production ante at the TSP fields, which came online in 1974.

Perenco T&T and state-owned partners, Heritage Petroleum and the National Gas Company (NGC), launched a $200 million three-year refurbishment program in 2021 to modernize TSP fields by electrifying the remaining platforms and replacing existing gas-lift infrastructure and operations with electric submersible pumps (ESPs). These efforts aimed to empower the move to a centralized, low-emission gas-fired power generation system. The first phase of Perenco’s modernization program enabled production to ramp up by 25%.

In the following phase, installation of the first platform at the TSP fields since the 1980s was completed. This platform,Macarius Power, was previously a drilling rig.

TDI-Brooks completed a 2D high-resolution seismic program for the firm offshore Trinidad in December 2023 to identify potential hazards and factors of operational significance relative to the placement of drilling rigs.

Offshore Brazil, Perenco recently disclosed a redevelopment plan for two oil assets in the Campos Basin. In Africa, Perenco started production at its new mobile offshore production unit (MOPU) in Congo.

While its DRC subsidiary made an oil discovery, the first offshore exploration success in Congo in nearly three decades, Perenco embarked on a five-well development drilling campaign at a field offshore Cameroon.

 

 

 

UK-Trinidad oil & gas merger

August 20, 2024, by Dragana Nikše

UK’s Trinity Exploration and Production, which has a portfolio of onshore and offshore oil assets located solely in Trinidad and Tobago, fulfilled two more conditions for its proposed merger with Trinidad-based Lease Operators.   On August 20, the duo disclosed that another pair of requirements outlined in the conditions and terms of the acquisition had been met, after state-owned Heritage Petroleum Company provided a written consent to the acquisition without exercising any pre-emptive rights under the joint operating agreements (JOAs).

The proposed acquisition is set to be effected through a court-sanctioned scheme of arrangement. This follows last week’s confirmation by the Minister of Energy that his consent is not required for the merger to proceed. The remaining conditions include the approvals by the Trinidad and Tobago Fair Trading Commission and Trinity shareholders at the court and general meetings, the court’s sanction of the scheme at a hearing, and the satisfaction or waiver of several other requirements.

 

 

 

 

One condition down, several more to go for Trinity’s acquisition

August 16, 2024, by Dragana Nikše

After accepting a cash offer from Trinidad-headquartered Lease Operators, UK’s Trinity Exploration and Production, which has a portfolio of onshore and offshore oil assets located solely in Trinidad and Tobago, is moving forward with the proposed merger.

Even though the conditions were met for Trinity to be acquired by Canada’s Touchstone Exploration, with the shareholders giving their blessing for the merger in June, the story got a plot twist when Lease Operators made a cash offer for Trinity in late July. The UK player accepted the offer in early August as it felt it was “a material improvement for Trinity Shareholders”  over the Touchstone offer

 

 

 

Trinidad firm outbids Touchstone for Trinity

August 2, 2024, by Dragana Nikše

Canada-based Touchstone Exploration’s acquisition of the UK’s Trinity Exploration and Production, which has a portfolio of oil assets located solely in Trinidad and Tobago, has fallen through since the latter has accepted the cash offer from a third company, Trinidad-headquartered Lease Operators, a subsidiary of Well Services.

While Trinity’s shareholders initially accepted Touchstone’s merger deal in late June, Lease Operators’ cash offer from last week made the firm decide to go another way and take the cash offer, Trinity said on August 2. Touchstone’s offer represented an implied value of 61.9 pence per Trinity share, which Lease Operators trumped by offering 68.05 pence per share.

 

 

 

Upheaval of Touchstone plan, as third player eyes UK firm

July 30, 2024, by Dragana Nikše

Canada-based Touchstone Exploration’s acquisition of the UK’s Trinity Exploration and Production, which has a portfolio of assets located solely in Trinidad and Tobago, has hit a snag as a third company, Trinidad-headquartered Lease Operators, a subsidiary of Well Services, made a cash offer for the latter.

After Touchstone announced its intention to acquire Trinity in May and the shareholders voted in favour of the deal in late June, another company, Lease Operators, made a cash offer for Trinity, the UK firms said on July 24. The offer in what appears to be an unexpected turn of events amounted to around £26.5 million, or $34.05 million.     However, Trinity underlined that the announcement does not constitute a firm intention by Lease Operators to make an offer for the company, which is not guaranteed even if the preconditions are satisfied or waived.

The Lease Operators’ proposal states that the offer is conditional upon, among other things, the completion of satisfactory confirmatory due diligence on Trinity by Lease Operators and a unanimous recommendation from the board. According to the Trinidadian firm, the precondition relating to its recommendation is not waivable but the precondition concerning due diligence is.

Touchstone noted that the possible offer is a “conditional, non-binding, indicative proposal” and subject to the completion of “satisfactory confirmatory due diligence,” expecting any firm offer announced by Lease Operators to be subject to certain regulatory approvals in the Republic of Trinidad and Tobago, in the same way as the acquisition scheme.

In light of the new development, Trinity’s board decided to reschedule the court hearing relating to the acquisition, originally scheduled for July 31, to August 23. The hearing was one of the preconditions for the transaction to close, as stated in the scheme document.

Touchstone said that conditions relating to the approval by Trinity shareholders at the general meeting and court meeting on June 24, 2024, and all regulatory and antitrust conditions have been satisfied. Unless the Trinity board takes action, and subject to the court’s approval of the scheme at the court hearing, the scheme would have become effective as expected on August 1.

As highlighted by Trinity, on the date preceding the rescheduled court hearing date, Touchstone will have the option of invoking a condition referring to the hearing being held on or before the 22nd day after the expected date set out in the scheme document.

 

 

 

US vessel for survey at Woodside’s deepwater gas project

August 5, 2024, by Melisa Čavčić

U.S.-headquartered geotechnical and offshore survey research and service company TDI-Brooks has won a new geotechnical survey assignment at a natural gas project off the coast of Trinidad and Tobago, which is operated by Australia’s energy titan Woodside. The survey will be conducted by a recently retrofitted 2000-built research vessel (RV).

Woodside booked TDI-Brooks for a geotechnical survey of the Calypso development around 225 kilometers off the eastern coast of Trinidad in water depths of approximately 2,100 meters. According to the U.S. offshore surveyor, this award will be its third at Calypso since 2022. TDI will deploy the 75-meter-long DP2 RV Nautilus, which underwent a six-month retrofit campaign in Las Palmas before conducting offshore wind assignments on the US East Coast.

With Geomil Manta-200 CPT, Neptune 3K & 5K vibracorers, and a specially designed pneumatic vibracorer by TDI-Brooks, the ship is said to be equipped for efficient and accurate geotechnical surveys and sampling. A Teledyne RESON full ocean depth multibeam echosounder (MBES) enables surveys in up to approximately 2,500 meters of water depth. The 2002-discovered Calypso conventional gas field, owned by Woodside and BP, is slated to be put in production mode in 2027. With a final investment decision for the project anticipated a year before it comes on stream, the Calypso gas development is progressing under the assumption that it will cease production in 2048.

 

 

 

A&V ‘vindicated’;

new oil wells produce 1,200 barrels daily

A&V Oil and Gas Ltd s announced that three of its newly drilled wells in the Catshill Field have produced in excess of 1,200 barrels of oil per day, vindicating the company against former claims of producing “fake oil”.

A&V stated that four of its newly drilled wells in the Catshill Field were opened to production on August 1 and 2.

“Three of the wells flowed and when tested in aggregate were producing in excess of 1,200 barrels of oil per day; production rates have since been choked back to approximately 800 barrels per day in order to improve and sustain the wells’ performance,” chief executive officer, Hanif Baksh, stated.

With these producing wells, Catshill is now the largest single producing onshore oilfield operated by an independent producer in Trinidad and Tobago, accounting for, on average 2,100 barrels of oil daily. The four oil wells, CO 208, CO 209, CO 210, and CO 211, were drilled in a cluster in February and March in the Catshill Field and encountered two levels of oil sands. The upper oil sands are now open to production and the production figures confirm, given the complex geology of the producing area, that there is still significant oil in the Catshill Field.

The productivity of these wells vindicates the correctness of A&V’s case before the recently concluded Arbitration with Petrotrin, that the Catshill Field had the capacity to produce the quantity and volumes of oil which Petrotrin denied. That denial by Petrotrin was the basis of the claim Petrotrin made against A&V that A&V got paid for the supply of fake oil to Petrotrin.

The Arbitration Panel comprised Sir Dennis Byron, Lord David Hope and former Justice of Appeal Humphrey Stollmeyer. In September 2017, during a UNC Meeting, Opposition Leader Kamla Persad-Bissessar accused A&V Oil of supplying fake oil to Petrotrin, which she claimed was permitted because the lease operator’s owner was a close friend of Prime Minister Dr Keith Rowley.

In February 2018, Petrotrin announced the termination of A&V’s contract on December 22, 2017. Eminent jurists found that the allegations made by Petrotirn against A&V were not justified by the evidence.

In its award, the Arbitrators granted an order which returned A&V to the Catshill Field for a ten-year period and ordered the payment of compensatory damages and legal fees by Petrotrin to A&V. A&V stated that with the new find, it renewed its commitment to the Energy Ministry, Heritage and the public to maximise on-shore oil production and increase royalties payable to the government.

 

 

 

National Enterprises Ltd loss

NEL reports $140.8m loss

The National Enterprises Ltd (NEL) reported a net loss after tax of $140.8 million for the nine months ended June 30.

In its condensed financial statements, published on the TT Stock Exchange website on August 5, NEL said this loss was in contrast to the net profit of $445.2 million in 2023.

NEL said this was largely due to unrealised fair value losses amounting to $774 million in its energy portfolio investee companies.

NEL is a holding company which has shares in seven companies, four of which are in the energy sector –

Trinidad Nitrogen Company Ltd (Tringen), NGC NGL Ltd, Pan West Engineers and Constructors LLC, NEL Power Holdings Ltd (NPHL), the Telecommunications Services of TT (TSTT), and National Flour Mills (NFM).

Total assets declined by $1.4 billion or 32 per cent over the comparative period.

Chairman Ingrid Lashley, in her report said NEL still maintains a robust operational performance and healthy cash balances.

Operational cash flows of $110.3 million, buoyed by improved investment returns, facilitated an interim dividend payment of $90 million for the financial year.

“Cumulatively, dividends for this period amounted to $234 million, up from $222 million in the corresponding prior period, underscoring our commitment to delivering shareholder value.”

NEL is “cautiously optimistic” about the medium-term prospects, particularly in its ongoing efforts by upstreamers and the TT National Gas Company Ltd (NGC) to stabilise local gas supply.

“Anticipating more consistent production and supply within the next two years in the petrochemical sector, we foresee a balanced income distribution across the energy segment, enhancing value flow to our shareholders and stakeholders. Furthermore, the resilient performance of our non-energy assets, such as National Flour Mills Ltd (NFM) and Telecommunications Services of TT Ltd (TSTT), reinforces our confidence in sustained earnings and strategic growth.”

NEL said it remains vigilant and adaptable, poised to capitalise on diversification opportunities that will fortify its portfolio’s long-term value. At its annual general meeting on June 7, shareholders expressed concern over the shaky financial performance of the holding company.

Lashley told them that over 60 per cent of NEL’s investments are in the energy sector, which is seeing significant volatility at the moment. NEL recorded a net loss of $133 million for the year ending March 31, as compared to a profit of $447.5 million for the same period the year before.

NEL assured its shareholders that while the company is experiencing bottom-line losses, its retained earnings continue to be robust and short-term investments remain healthy.

 

 

NP rural gas stations unprofitable

2024, 08/20

National Petroleum of T&T chairman Sahid Hosein and CEO Derek Luk Put attended a media conference where the state company said that some of its gas stations are unprofitable. Chairman Sahid Hosein said operating stations in rural communities was more of a corporate social responsibility for the company. NP had 117 service stations, of which 65 did not make a profit for the company areas such as Moruga, Toco and Mayaro. He justified keeping the stations open as an act of compassion.

“We want a station in a village that has just 40 people. Now, as any business operates, you need a clientele that can cover the cost of running that business. That’s why I said these stations aren’t profitable, but we have a responsibility to the public. Maybe when the multinationals were in charge, the profit margins made it sensible to operate those stations. However, people have become accustomed to these services. If someone doesn’t have something, it’s not an issue. But if they have it and you take it away, it becomes a literal war. More importantly, we have a social responsibility to ensure that these communities continue to be serviced, and we’re committed to that.”

Hosein denied claims by the OWTU in a letter to the Minister of Energy and Energy Industries on July 30 that the company rehired the HR manager after allegations of misconduct in office. Hosein emphasised that the investigation process was thoroughly conducted and the manager was cleared of any wrongdoing. There was no familial relationship between him and the manager, they merely shared the same surname.

 

 

Gas stations form Owners Dealers Association

2024, 08/04

The retail fuel industry needs realignment and should be commensurate with the direct financial investments made into gas stations. It is against this background the Owners Dealers Association (ODA) was formed over a week ago. The president-elect of the ODA is Reval Chattergoon, former president of the Arima Business Association (ABA).

Chattergoon said while there is the Petroleum Dealers Association (PDA), the ODA was formed as the gas station owners have very little to no input in decision making within the industry.

“It is this absence of a voice at the legislative table for consideration to be given to our specialised interest group that is one of the main catalysts for the formation of the ODA. Many times, consultations on policies that affect the retail fuel industry are held between regulatory bodies and fuel distributors (National Petroleum Marketing Company and Unipet) with no consideration for the frontline, which is the Dealer Owners.”

Outlining why the retail fuel industry needs realignment, he said the current allocation of margins/commissions does not differentiate between an individual/entity (investor) who bears full financial costs of investing in land, building and equipment and the operation of a service station and one whose only investment is fabricating a sign to affix to a gas station’s canopy.

“This differentiation is necessary to create incentives for investment and lessen the burden on taxpayers who eventually foot the bill for losses due to mismanagement. The present dependency on government grants and assistance is still prevalent, while legitimate dealer-owned and operated sites are only afforded the same retail fuel margins/commissions enjoyed by stations owned and operated by fuel distributors that benefit from Government intervention.”

Although the fuel industry is governed by the Ministry of Finance and regulated by the Ministry of Energy and Energy Industries, the ODA president said retailers are also required to be compliant with the Ministry of Trade and Industry, Ministry of National Security, Ministry of Planning and Development, their respective fuel distributor and its financial institutions of which all certifications and costs are borne by the owner/dealer.

These regulatory bodies have mandates in effect to protect the consumer.
However, he highlighted there is very little oversight if any from the Energy and Finance ministries to ensure fair contractual relationships between owner/dealers and the respective distributors.

“ODA understands that the inequities are far-reaching and there is very little recourse for issues being faced by owner/dealers, which include but are not limited to variances, increases in expenses due to social and economic problems, margins that are not margins but commissions on fuel sold, policy formulation and requisite implications.

Changes within the upstream oil/gas industry that the Ministry of Finance and Ministry of Energy and Energy Industries have made, indicate their willingness to improve the industry for both consumers and dealers.

The ODA believes that now is the best time to work with and lobby the Government for changes within the retail fuel industry that have been neglected for many years.”

So what’s the vision of the ODA?
Chattergoon said the mission is to have fairly regulated operations for all based on the investment placed into the gas station.

“Gas stations have operated as a collecting agency for the state for years and have been taken for granted. We are only important when the service becomes scarce or during periods of emergency as seen during fuel shortages and the COVID-19 pandemic.”

ODA comprises owner/dealers from both NP and Unipet, as well as owner/dealers. All membership details will remain confidential, save for where required by law or by consent of the individual members.

“In just under one week, the ODA has both NPMC and UNIPET dealer owners comprising 18 per cent of owner/dealers. I am certain that very soon, we will have 85 per cent of 57 owner/dealers joining the ODA.”

On whether the Government will also recognise this association as it does the PDA, the president said as in any association, the government will listen depending on how information is addressed to them.

“I have always found it easier to work with the state to create change. When I took over the ABA, it was dormant and without a voice. During my tenure, I have kept in touch on key issues, and I have earned a seat at the table to be heard. The difference with the ODA is that I have almost 30 years in the retail fuel industry, and I am very passionate about it. One can also say that gas stations are dependent on all sectors to be successful. COVID has certainly taught us this.”

ODA’s consultant Dr Vaalmikki Arjoon sees the establishment of the ODA as a progressive and strategic step that will strengthen the voice of gas station retailers.   The investment of owner/dealers is quite substantial, as they not only operate the gas station but also own the land, property, and gas station infrastructure.

“Given the magnitude of their investments, it is therefore important for these businessmen to have a unified voice, and the ODA fills this gap in the industry’s structure, ensuring that their voices are heard and interests considered in the policy-making process, thereby promoting fairer and sustainable industry practices.

“Over time, the growth of the organisation can strengthen the bargaining power of retailers with fuel distributors and government bodies, potentially leading to better contractual terms, which will lead to tangible improvements in the operational and financial conditions for gas station owners. At the same time, the ODA is also expected to assist with enhancing regulatory compliance and reducing the administrative burden on their members through collective support.”

Liberalised regime?

In the 2021 budget speech, which was delivered on October 5, 2020, Minister of Finance, Colm Imbert, said the fuel market would be liberalised and the statutory margins removed:

“Under this arrangement, which is targeted for introduction in January 2021, the fixed retail margins for all liquid petroleum products will be removed; petroleum retailers and dealers will now be allowed to fix their own margins.

“Wholesale margins will remain fixed for the time being and an appropriate but reasonable tax introduced to compensate for the current fuel surplus that is generated on the sale of gasoline, because of depressed oil prices. The net result should be little or no increase in the price of motor fuels at current oil prices. However, it must be noted that if the price of oil recovers, the price of gasoline and diesel will naturally increase proportionately.”

The fuel market in T&T has not been liberalised.

 

 

 

Sea Lots basin finally restored

The Sea Lots Channel and Turning Basin was fully restored to its original design depth for the first time in approximately 15 years, according to the National Energy Corporation of Trinidad and Tobago Ltd (National Energy) and the Trinidad & Tobago National Petroleum Marketing Company Ltd (NP) .

The restoration, commissioned by the Ministry of Energy, was executed by National Energy on behalf of NP. During the period December 2023 to July 2024, National Energy project managed the dredging in accordance with international best practices and adherence to stringent HSSE procedures which resulted in zero Lost Time Incidents (LTIs).

National Energy president, Dr Vernon Paltoo, expressed his satisfaction with the management of the project saying: “We are pleased to have restored the Sea Lots Channel and Turning Basin, using our proven expertise in dredging operations from completing similar projects at our ports in Point Lisas, Galeota, and La Brea. Our experience allowed us to complete this project efficiently and within budget. This achievement further demonstrates National Energy’s capability to deliver on critical national projects that benefit the economy and citizens of Trinidad and Tobago.”

NP chief executive officer, Derek Luk Pat shared his excitement about the benefits to be derived from the project.

“NP is pleased with the safe and successful completion of this dredging project. We are already implementing plans to increase the port’s capacity to accommodate larger vessels. We look forward to the positive impact this would have on trade and revenue generation.”

 

 

 

Removal of Capsized Oil Barge off Tobago After Six Months

August 20, 2024 by The Maritime Executive

The mysterious oil barge leaking oil off the coast of Tobago has finally been salvaged as the search for the culprits continues.

Trinidad and Tobago’s Ministry of Energy reported the successful refloating of the barge as the last step in the recovery efforts expected to cost $30 million. Refloating began on August 19, requiring approximately six hours.

Shortly before midnight local time the salvage team confirmed the barge was afloat. T&T Salvage, which had been working with the ministry for over 6 months, oversaw the operation.

The barge was discovered wedged on the west coast of Tobago on February 7. The Coast Guard and officials thought a cargo ship had capsized but found no survivors. Further investigation revealed it was a large ocean-going oil barge that had been under tow by a tugboat which could not be located.

T&T launched a containment and remediation effort requesting international assistance. The barge had a capacity of approximately 85,000 barrels. As of April, over 32,000 barrels had been recovered from the barge.

A nine-mile section of the coastline was covered with the oil amid fears it might also wash toward neighboring countries.The salvage team postponed the planned removal operation set for August 5 and 6, delayed by rough surf and conditions during tropical storm/ hurricane Ernesto.

Salvage teams secured the barge while divers began a survey. The barge was moved overnight to a position approximately three nautical miles off the coast with tugs managing the wreck. An underwater survey accessed areas that had been aground for divers to remove debris before a tow can begin.

The towing operation to take the barge from Tobago to Port-of-Spain, is expected to take approximately 33 hours. It will be accompanied by a pollution response team on contingency vessels following the two tugs that will maneuver the overturned Gulfstream barge. The Ministry of Energy said the beach and coastal cleanup was completed and it was closing its temporary facility at Cove.

Government predictably failed to find the culprits after 7 months, fuelling suspicion of dissembling.

The search continues for the crew of the tug operating the tow which abandoned the barge. The tug went dark turning off its locator signal but further analysis identified it as the Solo Creed, 128 feet (39 meters) with 538 gross tons, built in 1976 in the USA. Ownership is unclear as well as its registry.

Most databases reflect it as the Ranger registered in Tanzania, but the data is reported as old or the owners as unknown. The tug turned up in Angola in May 2024 and the government of T&T sought help from the local authorities to detain the vessel and its crew.

T&T’s Energy Minister had said that they were seeking assistance in investigations from Panama, Aruba, Curacao, Tanzania, Nigeria and the UN International Maritime Organization (IMO) with responsibility for security of shipping, which agreed to identify a consultant to assist Government which plans legal action against owners of the Gulfstream and Solo Creed. TT is using relationships and resources, including an independent satellite provider, to ascertain the owner/ owners of the vessels.

The International Pollution Fund recognized claims made by Trinidad and Tobago and offered $50 million compensation to assist in the cleanup and assist those affected by the spill.

Budget 2024 allocated TTD 6.912 billion to the Ministry of National Security. Tug and barge entered territorial waters off the North Coast, undetected by nearby naval assets of Chaguaramas-based Coast Guard, well-equipped with 12 Damen patrol vessels. Cape-class-patrol boats with a range of 3,000 nautical miles and 28 days of stay, are funded to maintain a presence in territorial and international waters, providing a maritime security net.

On September 8, 2023 the United States Embassy donated US$1.6 million in equipment including 4 naval assets to the Coast Guard and upgraded its Maritime Operations Command Centre. to monitor vessel traffic and identify and track threats within TT maritime borders, strengthening maritime domain awareness.

The Africa connection, with citizens and diaspora of Commonwealth members notorious for egregious corruption in the petroleum industry, is a link with a global network of rogue vessels operating outside the law and international obligations.

Caricom declared the West Indies as the 6th region of Africa, boosting contacts through investments, visits and exchanges, which may facilitate illegal networks avoiding oil sanctions.

 

 

 

Gulfstream barge refloated

2024, 08/20

The Ministry of Energy said the Gulfstream, grounded since February 7 off the coast of the Cove Eco Industrial Park, Tobago, was successfully refloated on August 19. On August 20, the ministry said refloating followed significant groundwork and preparations from 5.50pm to 11.54pm.

Operations were supervised by a team from TT Salvage Inc, an international salvage company, comprising a senior salvage master, naval architect and a contingent of skilled salvors, with support of technical staff at the ministry.

The Gulfstream is currently stationed approximately three nautical miles away from its original resting place and is now afloat holding station in waters 60 metres deep off the coast of Cove, secured and supported by tugs.

The temporary facility at the Cove site has been decommissioned by the Ministry. A dive team will perform an underwater survey, using Association of Diving Contractors International-certified divers. This is required for assessment of areas of the barge, which were previously inaccessible and to remove debris that would impact towing operations. After the survey, the barge will be cleared for the transit/tow phase. The capsized Gulfstream will be towed by two support tugs provided by the National Energy Corporation and a contingent of other vessels. The trip to Port of Spain will take 33 hours. As a contingency during transit, NOFI Current Busters and QT Environmental pollution-response crews, trained in recovering oil from the sea surface, will escort the vessel.

2024, 08/15

The doomed Gulfstream was removed from the wreckage site off the Cove in Tobago. The vessel capsized and crashed into a coral reef on February 7, devastating 15 kilometres of coastline with bunker fuel. The barge was towed along the Magdalena Resort shoreline, heading east away from shore. Tobago Emergency Management Agency Director Allan Stewart confirmed towing the vessel to Trinidad has begun.

“The preparatory works are taking place. We have confirmed they are doing the necessary to remove the vessel in the shortest space of time. Soon, based on their (Energy Ministry) projection, movement will take place.”

The Ministry of Energy is spearheading work in partnership with international salvaging company T&T Salvage. In June Minister Stuart Young gave a commitment to remove the vessel by the end of July.

As the salvaging continues, a local diver lamented that one of Tobago’s healthiest coral reefs, which cushioned the crash, will not heal. At the wreckage site, a large debris field remains. During the crash, the vessel’s upper structure was ripped off from the hull. This part dragged through the coral as the vessel moved closer to the shore.

A specialist diver and marine enthusiast, said the island’s marine life and scuba diving tourism product would be negatively affected. Divers from around the world will surely miss the popular diving spot .

“The first impact of this spill was the scarring of the reef. It was tremendous. It slid over the coral reef and destroyed everything. The focus is the cleanup on land and the recovery on land, but damage was been done to the marine environment as well.

“It will heal, but a coral reef system takes hundreds, if not thousands, of years to grow and develop. So, it’s going to be a long time, and that area is permanently scarred. Nature has a way of mending itself, but it’s not a fix any of us will see in our lifetime.”

He suggested that the barge be submerged near the damaged area to act as a nursing ground for fish until the underwater ecosystem recovers. When the incident happened, divers noticed that the vessel bobbed up and down, slamming into the reef, once a nursing ground and popular site for leatherback turtles.

“What I would like to lobby for is to have that wreckage turned into a dive wreck to be submerged very close and turned into a wreck. I’m hoping the THA would consider it. People are seeing the wreck, but beyond the wreck, there are parts that were broken off from the vessel. During this ordeal, we saw lots of turtles coming up in the oil and weren’t able to breathe.”