Williams very optimistic of TT’s natural gas future

At the current reserves and the rate of consumption the country’s natural gas reserves would be completely exhausted in 24 years time, but Energy Minister Eric Williams thinks that given the country’s geological history it was unlikely that new sources of gas would not be found. In fact, he said, the overall potential of the geologic basin was believed to be in the order of 90 plus trillion cubic feet of natural gas alone (not including oil).

He was responding to a question from Opposition Senator Wade Mark in the Senate. Williams said in 1983 the proven reserves were 8.7 trillion cubic feet; by 1986 it moved to 10.3 trillion cubic feet, in 1994: 12.34 trillion cubic feet; 1999: 21.3 trillion cubic feet.  Williams stated as as of January 1, 2003 the proven gas reserves were estimated at 20.758 trillion cubic feet, while the undiscounted probable gas reserves stood at 8.28 trillion cubic feet. Williams said LNG Train 4 was expected to consume 800 million cubic feet of natural gas per day and likely to utilise 5.8 trillion cubic feet of gas over a 20-year period. Saying that the agreement involving the fourth LNG Plant would bring improved benefits to the people of this country, the Energy Minister said it is estimated to earn for the people of this country a direct revenue of $1.5 billion each year for the duration of the contract. He said the agreement called for no tax holidays and all relevant taxes would be paid to the national treasury by the industrial partners.

Williams said a salient feature of the new agreement was a corporate arrangement under which Government would maximise its revenues. He said under the agreement a new and separate company must own Atlantic LNG Train 4. He also noted that the long-standing question of royalty on natural gas had also been resolved. Williams said the agreement also provided for the plant to have the capability to extract up to 80 percent of the ethane in the natural gas feedstock, in the hope that this country would be able to get into a world-class ethylene plant and receive additional revenue. He said a number of world-class players in the ethylene business were beginning to exhibit an interest in such a development in Trinidad and Tobago. He said employment which would be generated at the start of the construction of the plant is expected to peak at 2,400 persons. He said it was also significant that NGC had 11.11 percent of the possessing rights in the LNG Train 4 plant. Responding to a request to lay the agreement in the Parliament, Williams stated that he had to seek legal advice before doing so.