Former Energy Minister questions gas deal

On Monday, Venezuela’s President Nicolas Maduro and this country’s Prime Minister, Dr Keith Rowley, signed three agreements for: (I) A supply of natural gas from Venezuela to Trinidad and Tobago from Camp Dragon; (II) Shell Venezuela and Pdvsa entering in negotiations to evaluate opportunities to reduce gas flaring in northern Monagas state, and; (III) Agreement to obtain financing for a joint venture to encourage increased oil production. In a telephone interview yesterday, Seepersad-Bachan said any increase in TT’s gas supply would “always be of benefit to Trinidad and Tobago and diversifying those gas supplies, not putting all your eggs in one basket, will boost your reliability.” “But what is the cost to Trinidad and what would be the cost to NGC to purchase such gas?” Seepersad- Bachan asked.

“What is going to be the gas price that we are talking about from Venezuela because we are going to have to purchase that gas.” She noted that the Dragon field was about 17 kilometres from any drilling infrastructure in Trinidad and Tobago and could “link up to the Hibiscus platform” for onward shipment to Trinidad.” “The issue here is what is the state of development of the field, how far ahead is that development and what is the participation of the Venezuelan government in the gas field? Is it that we are purchasing gas from Pdvsa or is it going to be a joint venture between NGC and Pdvsa? Is it NGC all alone? Is NGC’s participation only in the construction of the pipeline from that field to whatever infrastructure such as the Shell Hibiscus platform in Trinidad and Tobago?” Seepersad-Bachan also wondered whether it would have been more economically feasible for government to give tax incentives to operators who are already conducting exploration activities in Trinidad and Tobago waters.