Shell plc is advancing its 2.7 Tcf Manatee offshore development in the waters off Trinidad and Tobago.
Trinidad and Tobago’s Prime Minister Kev Rowley said earlier this month the project was going ahead as the dual island nation attempts to up domestic gas production to feed its flagship Atlantic LNG export facility. One of Atlantic LNG’s trains at the 15 million metric tons/year (mmty) site has been idle since 2020 because of insufficient feed gas supply.
Trinidad and Tobago’s LNG sendout has been around 600,000-700,000 tons/month so far this year, according to data from Kpler.
Declining natural gas production from Trinidad and Tobago has forced the government to push for resourceful options to feed its LNG trains and maintain its spot as Latin America and the Caribbean’s largest LNG exporter.
The Caribbean nation is a global supplier of LNG and delivers several cargoes a year to New England, especially during periods of high winter demand. Just two countries in the region, Peru and Trinidad and Tobago, currently export LNG. The dual island nation is the leader by far with current export capacity of around 15 mmty, while Peru boasts 4.5 mmty.
But Mexico is poised to become the third exporter in the next few months on completion of a 1.4 mmty offshore liquefaction unit by New Fortress Energy Inc, and other projects are in the works.
Increasing Feedstock
Shell has not taken a final investment decision on Manatee, a company spokesperson told NGI.
“Shell Trinidad and Tobago can confirm that it has submitted an application for the Certificate of Environmental Clearance (CEC) to the Environmental Management Authority (EMA). The application for a CEC is a regulatory requirement of the EMA and is required for the Manatee project,” the spokesperson said.
The National Gas Company of Trinidad and Tobago also said Friday it has signed an amended domestic gas sales contract with an affiliate of Shell for natural gas volumes from Shell’s Manatee offshore gas field project once it’s sanctioned.
Manatee, which was discovered in 2005 and extends into Venezuelan waters, has been touted as the field most likely to supply gas in the short term. Australia’s Woodside Energy Group Ltd.is also developing the 3.4 Tcf offshore Calypso field.
Meanwhile, Trinidadian officials are in discussions with Venezuela over importing gas from that country’s offshore Dragon project.
Trinidad and Tobago’s Energy Minister Stuart Young recently met up with Venezuela’s President Nicolas Maduro, potentially as part of those discussions. In May, Trinidad and Tobago formally asked U.S. officials to change license terms related to Dragon. The United States has placed economic sanctions on Venezuela, preventing Trinidad and Tobago from importing its gas as feedstock for its liquefied natural gas operations.
Trinidad and Tobago and Suriname have also signed deals around jointly developing natural gas resources.
Meanwhile, BP plc and Shell last year agreed to restructure ownership in the Atlantic LNG partnership, allowing the country’s state-owned firm National Gas Company of Trinidad and Tobago (NGC) to increase its stake.
As part of the restructuring, the project would allow all producers to provide gas for LNG production, as opposed to only allowing the project’s major shareholders to do so.
Last year, Shell and BP also achieved first gas from new developments offshore Trinidad and Tobago, including BP’s first offshore project in the region using a compression platform.
The energy sector accounts for around 45% of the country’s gross domestic product, according to the Ministry of Energy.
