Senator Ali: Two trillion cubic feet gas is ‘missing’

INDEPENDENT Senator Basharat Ali wants to know the whereabouts of  some two trillion cubic feet (tcf) of natural gas that represents the difference in our total reserves as estimated respectively by the National Gas Company (NGC) and by Minister of Energy, Eric Williams. Ali was speaking on the Budget debate in the Senate on Thursday night. He pointed out differences in reserve figures given by Williams last week speaking on the Budget debate in the House of Representatives, and figures given in an NGC advertisement, ironically carried on the same page of Newsday where Williams’ speech was reported. Our gas reserves are comprised of proven, probable and possible quantities. Ali said Williams estimated our proven reserves at 18.8 tcf compared to an NGC estimate of 20.8 tcf. Williams estimated our probable reserves at 5.9 tcf compared to the NGC’s 8.3 tcf. Our possible reserves, according to Williams, were 8.6 tcf, while the NGC put them at 6.1 tcf.

Ali said the Minister estimated a total of 33.3 tcf compared to NGC’s estimate of 35.2 tcf — a difference of almost two million tcf. “I would like an explanation. Gas reserves are always a controversial issue in this House.” He wanted a clarification of Williams’ statement that “most” of the agreements were in place to set up Atlantic LNG Train Four, which is due to open in early 2006.  Ali asked, “What agreements are not in place?” He said this was important to know because NGC was an 11 per cent equity partner in Train Four. Ali questioned Williams’ proposal to expand the capacity of ALNG by another 800 million cubic feet per day. “I am a firm believer in diversification of our natural gas industry and I do hope that before any further commitment to LNG is made, we will look at the other options for our gas usage in light of our limited reserves situation.”