Dwindling gas reserves akin to fall of ‘Mt Trinidad’

In its monthly newsletter, the Energy Chamber cited a study by globally respected consulting firm, Rystad Energy which stated that since 2005 there had been a “significant decrease in the number of new gas development projects sanctioned for investment in Trinidad and Tobago.” “The data shows the rapid rise and steep decline of natural gas production over the past five years and the projected decline post 2019, unless significant new gas fields are sanctioned for development immediately,” the Chamber stated, adding that Rystad consultant Kjetil Solbraekke had described the steep declines as “the falling of Mount Trinidad.” “This has led directly to the significant decline in production experienced since 2010 and the shortfalls in gas delivery to the petrochemical industry in Point Lisas and the Atlantic LNG facility,” the Chamber stated.

“Gas production in Trinidad and Tobago has dropped from 4.2 billion cubic feet per day (Bcf/d) in 2013, to 3.3 Bcf/d in 2016.

“According to Rystad, gas production in Trinidad and Tobago is expected to continue to fall over the next few years although at a much slower pace than in the past few years. Over the period 2016 to 2019, Rystad estimates a production decline of around three percent annually as new volumes are expected to come on stream.” The Chamber stated that the underlying decline of already producing fields will be “14 percent over the period 2016 to 2030” as there were not sufficient resources currently being developed to offset this drop. “After 2019, gas production will again decline rapidly, unless new projects are sanctioned in the very near future.” Meanwhile, Chaguanas Chamber of Industry and Commerce (CCIC) president Richie Sookhai, while applauding the agreement between this country and Venezuela for the supply of gas from the Dragon field, expressed concern about the lack of information concerning payment for natural gas.

“My issue right now is about the particulars concerning the deal because obviously a remuneration is expected between both countries and we don’t know what this remuneration is going to be to Venezuela and what form it is going to take place,” Sookhai said.

“Yes it would be a good thing because it would add a constant flow of natural gas into the country but it’s going to take four years. So in the meantime, what are we going to do with the existing companies that do require the natural gas to function like Methanol holdings? “Is the country able to run efficiently for that four years until the gas from the Dragon field comes on stream or do we have to worry about other companies closing their doors in the meantime?”