PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago government says it has secured a new unitized commercial structure for Atlantic LNG, which allows the state-owned National Gas Company of Trinidad and Tobago (NGC) to obtain a more significant share in the revenue derived from the sale of LNG on the global market.
A statement issued by the Office of the Prime Minister said that the commemorative inking of the deal by NGC, Shell, and BP took place in London on Tuesday.
“This long-awaited, unprecedented agreement will provide for the long-term sustainability of Trinidad and Tobago’s gas sector and a higher level of certainty, which is crucial for future investment,” the statement said.
Prime Minister Dr. Keith Rowley, leading a two-member delegation to the talks, thanked both BP and Shell “for their commitment throughout the years of negotiations to achieve this historic milestone for the energy industry and Trinidad and Tobago.”
As a result of the agreement, the NGC now has a 10 percent stake in the new commercial structure for Atlantic LNG, one year after the government signed new contracts about the restructuring of Atlantic LNG with bpTT, Shell, and the NGC, changing the commercial structure of Atlantic LNG- for the first time in 27 years.
Prime Minister Rowley acknowledged that it was a long journey since he had made the case to BPTT and Shell that Trinidad and Tobago needed more revenue from the contracts first negotiated when the trains were set up and asked them to re-negotiate.
“It was a fit of madness to think we could have done this, but as I read it, I realized it was doable, and we did it,” Rowley said at the signing ceremony in London, describing the new agreement as a significant victory for the government in terms of its ability to negotiate with the oil giants.
The new agreement was signed by Energy and Energy Industries Stuart Young.
In a statement, BP said the new structure will also facilitate a market-reflective pricing mechanism that provides fair value from the sale of LNG for both Trinidad and Tobago and the shareholders and will allow for an intensified focus on Atlantic’s operational efficiency and reliability.
It said for investors, it will provide the certainty required for sanctioning the next wave of upstream gas projects.
“bp welcomes the new structure for Atlantic LNG, which has come from close collaboration with all stakeholders. The new structure will benefit the Government of Trinidad and Tobago and Atlantic’s shareholders. For BP, the new structure sets a strong foundation for future investment in T&T’s energy industry, including the deepwater,” said bpTT president David Campbell.
In a separate statement, NGC said it was excited by the future prospects of the new shareholding arrangement and is prepared to leverage its current participating interest in Atlantic LNG to generate maximum value for the country.
“The landmark commercial arrangement for the facility signals the country’s pursuit of excellence on a global scale to maximize all opportunities for bolstering the sustainable development of Trinidad and Tobago’s LNG and energy sectors.
“The company reaffirms its commitment to seek avenues to optimize the performance of this arm of its business. NGC has strengthened its resilience in the face of a transitioning energy future and will continue to act in the best interest of the citizens of Trinidad and Tobago,” NGC added.
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