BPTT’s Juniper will not ease natural gas shortage, NGC president says
BP Trinidad & Tobago’s Juniper field will not ease Trinidad and Tobago’s downstream natural gas shortages, according to the president of the Caribbean twin-island nation’s National Gas Co. Mark Loquan but would instead provide relief to Atlantic LNG.
Loquan said in an interview with OGJ that the additional 580 MMscfd from Juniper will be used to mainly increase Atlantic LNG’s (ALNG) production and would only stabilize domestic production.
“When it comes to Juniper, BP is feeding LNG as well as the domestic arm,” Loquan said, adding, “What they have always said to us is contractually this is what you are going to get and they have been delivering on that. But any increase is only a capacity increase. They are of course feeding LNG because they are making the investments there and they are heavily curtailed on the LNG side as well.”
Loquan added that part of the challenge being faced by BPTT with its additional production is the issue of the capacity of its gas hubs. He said, “You do have your limitation on hubs and you are limited on what can get by introducing new capacity. That’s a fact! You have depletion going on and you do have some shortfalls and penalties that are being incurred on the LNG side as well. So BP is in a position where they are trying to satisfy their penalties and contractual positions on the LNG side and at the same time maintain the contractual flow on the domestic side and that’s where we are.”
According to BPTT, however, it has already reached its 2 bcfd production levels and is now ramping up Juniper to send even more gas to both ALNG and to NGC.
In a response to questions from OGJ, BPTT said, “BPTT’s current production is in the range of 2 bcfd. Production from Juniper will be ramped up over the next several weeks with gas being aggregated into BPTT’s supply to NGC and [ALNG].”
Loquan said the island was looking forward to Royal Dutch Shell implementing its aggressive developmental program which it expects will add significant amount of gas to the system. He also feels confident that come 2020 the island will be able to access another 500 MM scfd of gas from neighbor Venezuela.
The NGC is Trinidad and Tobago’s sole aggregator and the island’s downstream production has global price implications as it is the largest exporter of methanol in the world and the largest exporter of ammonia to the US.
