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Trinidad And Tobago Government Signs Agreement With Bp And Shell

Min¬is¬ter in the Of¬fice of the Prime Min¬is¬ter, Stu¬art Young said the agree¬ment in¬volves new pric¬ing arrange¬ments, and more.

Trinidad And Tobago Government Signs Agreement With Bp And Shell

PORT OF SPAIN, Trinidad and Tobago, November 29, 2018 (CMC) – The government signed an agreement, today, with energy giants, Bp and Shell, that will lead to “significant” financial benefits to the twin-island republic.

During today’s post-Cabinet media conference, Min­is­ter in the Of­fice of the Prime Min­is­ter, Stu­art Young, said the  agree­ment in­volves new pric­ing arrange­ments, the ex­ten­sion of the At­lantic LNG Train 1 by a fur­ther five years, and the abil­i­ty of the Na­tion­al Gas Com­pa­ny (NGC) to ex­port liqui­fied nat­ur­al gas (LNG) on be­half of  Trinidad and Tobago. 

According to Young, the dis­cus­sions start­ed in April, when Prime Min­is­ter, Dr. Kei­th Row­ley, led a del­e­ga­tion to the Com­mon­wealth Heads of Gov­ern­ment Meet­ing (CHOGM) in Lon­don.

He added that out of that meet­ing, all three par­ties agreed to ap­point em­pow­ered ne­go­ti­at­ing teams to sit and ne­go­ti­ate terms of con­tracts, go­ing for­ward.

“I am hap­py to say that af­ter months of very in­tense and ag­gres­sive ne­go­ti­a­tions, the gov­ern­ment of Trinidad and Tobago has reached an agree­ment with Bp and al­so with Shell,” Young said.

At­lantic LNG’s Train 1 was due to end op­er­a­tions in April 2019, but the min­is­ter now says it will con­tin­ue, at least un­til 2024.

An LNG train is a liq­ue­fac­tion and pu­rifi­ca­tion fa­cil­i­ty that  con­dens­es gas in­to a liq­uid state.

At­lantic LNG has four trains in its Point Fortin plant.

The con­ti­in­u­a­tion of the train will al­low for the con­tin­u­a­tion of jobs and fur­ther pro­duc­tion of liqui­fied nat­ur­al gas, for ex­port and for sale to NGC.

NGC, Bp and Shell are among the share­hold­ers of Train 1.

The min­is­ter told reporters that he could not dis­close the new pric­ing for­mu­la, agreed to by the en­er­gy com­pa­nies and gov­ern­ment, but says the new for­mu­la “sig­nif­i­cant­ly en­hances the rev­enue for the peo­ple of Trinidad and To­ba­go”.

He explained this will al­so be the first time that the NGC will have the abil­i­ty to sell LNG car­goes of LNG on be­half of the country.

“That is a ma­jor achieve­ment that we did not have be­fore,” Young said.

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