Trinidad
and Tobago approve fourth LNG train
Posted: 17 June 2003
BP today welcomed the government of Trinidad and Tobago's approval
for the proposed Atlantic LNG Train 4 project in Trinidad.
This significant milestone keeps the $1.2 billion liquefied natural
gas (LNG) project on schedule for completion by the end of 2005.
BP will be the largest shareholder in the new plant as well as
the largest supplier of gas for liquefaction at the plant.
BP has identified Trinidad and Tobago as one of five new profit
centres worldwide where it expects to significantly expand hydrocarbon
production over the next five years.
Tony Hayward, BP's chief executive, exploration and production,
said: "The approval for Train 4 is the next step in Trinidad's
continuing development into one of the world's major sources of
LNG. We expect BP's gas production for LNG from Trinidad to double
to over one billion cubic feet a day by 2005 as Atlantic LNG's Trains
2 and 3 increase production. The addition of Train 4 could raise
this to a minimum of 1.5 billion cubic feet a day by 2006."
Ralph Alexander, BP's chief executive, gas, power and renewables,
added: "Train 4 will also mark a significant step forward for
BP's rapidly growing global LNG marketing business. BP has been
successfully capturing attractive markets in the Atlantic Basin
to allow acceleration of our equity gas production. BP's LNG from
Train 4 will go to these markets in the USA and the Caribbean, creating
additional value for both BP and Trinidad and Tobago."
On completion, Atlantic LNG Train 4 will be one of the largest,
most efficient LNG production plants in the world, producing approximately
5.2 million tonnes a year of LNG.
The train will bring Atlantic LNG's total production capacity to
some 15 million tonnes a year. Each of the partners in Train 4 will
market its share of production from the plant independently.
The Atlantic LNG consortium has five shareholder companies and
each has the option of participating in Train 4 at the level of
its shareholding interest. Although participation in Train 4 has
yet to be agreed, the shareholders' interests are: BP, 34 per cent;
British Gas, 26 per cent; Repsol, 20 per cent; National Gas Company
of Trinidad (NGC), 10 per cent; and Tractebel 10 per cent.
Atlantic LNG was formed in 1995 to develop an LNG plant at Point
Fortin, on the south west coast of Trinidad. The plant currently
has three LNG trains:
Train 1, with a production capacity of three million tonnes of
LNG a year, is owned by all the Atlantic LNG shareholders in line
with their shareholdings. The train began operation in 1999 and
supplies LNG to the USA and Spain. bpTT supplies all the feed gas
for Train 1.
Trains 2 and 3, each with capacity of 3.3 million tonnes a year,
are owned by BP (42.5 per cent), British Gas (32.5 per cent) and
Repsol (25 per cent). Train 2 exported its first cargo in 2002 and
Train 3 is expected to export its first cargo later this year. Feed
gas for trains 2 and 3 is supplied by BP and British Gas.
BP will supply gas to Train 4 from BP Trinidad and Tobago (bpTT,
owned 70 per cent by BP, 30 per cent by Repsol), the largest supplier
of natural gas in Trinidad and Tobago.
Cumulative gas sales for 2002 to the LNG plant and domestic sales
in Trinidad were approximately 451 billion cubic feet and current
reserves of natural gas are estimated at 19 trillion cubic feet
of gas.
Among the largest fields operated by bpTT are Mahogany, Amhertsia
and Immortelle. bpTT is currently developing the Kapok field to
improve its gas production capability for the immediate future.
bpTT also produces approximately 50,000 barrels a day of oil.
BP is one of the world's largest suppliers of gas to liquefaction
plants for LNG production. It expects to grow this supply to more
than 1.5 billion cubic feet a day by 2005, resulting in an average
growth rate of around 15 per cent a year and a global market share
of around 8 per cent. BP is currently involved in four major liquefaction
plants, which together account for over 30 per cent of 2001 global
LNG sales.
In addition to Atlantic LNG, BP is a shareholder and technical
adviser to ADGAS, which has been delivering LNG from Abu Dhabi to
Japan since 1977.
BP has a one sixth share in the Australian NWS project and is also
a participant and operator in the upstream side on Bontang LNG in
Indonesia, the largest LNG plant in the world.
In the Atlantic Basin, BP has secured market access through the
Cove Point terminal in Maryland and is pursuing projects to create
new build LNG import facilities in the US, Spain and Italy.
Posted by Richard Price,
Editor Pipeline Magazine
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