NGC and Shell sign manatee agreement | Local company

The FULLY state-owned National Gas Company (NGC) announced yesterday that it has signed an Agreement-in-Principle (HOA) with Shell to start the pre-FEED (pre-FEED) engineering phase for Manatee gas processing via NGC’s Beachfield facility.

In a press release yesterday, NGC said the HOA is setting the framework for technical and commercial work to enable further progress in this phase of the Manatee project, which is located southeast of Trinidad. Manatee was part of the Loran / Manatee, which straddles the maritime border of T&T and Venezuela. Manatee was disassociated from Loran’s field in October 2019.

In its statement yesterday, the gas company said the HOA strengthens the partnership between NGC and Shell and sets the stage for future collaboration between the two companies.

The signing bodes well for the local energy sector as it marks another important milestone in meeting the country’s future demands for natural gas, NGC said.

The company said that when the project is sanctioned, production in the Manatee region is expected to strengthen the continued gas supply to the domestic market as well as to the LNG industry.

The Energy Department’s latest monthly bulletin shows that Shell produced an average of 531 million standard cubic feet per day (mmscf / d) for the period January to August 2021.

On November 17, 2021, Prime Minister Keith Rowley announced the agreement between the government and Shell on the terms and conditions of the Manatee production sharing contract.

The Manatee field has approximately 2.7 trillion cubic feet of natural gas reserves.

At last year’s ceremony, Prime Minister Rowley said preliminary estimates indicated that natural gas production from the Manatee could begin as early as 2025, with initial production of up to 350 mmscf / d, before increasing to ‘at 700 mmscf / d. .

He said based on the development concept, the project’s operating and capital expenditure is estimated at $ 1.8 billion.

In yesterday’s new statement, NGC Chairman Mark Loquan noted that the deal advances NGC’s strategy to secure its current operations in Trinidad and Tobago.

“NGC continues to collaborate with industry stakeholders and leverage collective expertise and capabilities to support the energy sector,” said Loquan, adding, “By working closely with Shell, NGC actively participates in major growth projects that will significantly contribute to national development. “

NGC Chairman said the company will strive to ensure the integrity and capacity of T & T’s gas-related infrastructure as it remains steadfast in its commitment to provide a stable and reliable supply of natural gas.

“We recognize that this is an important step for the entire Manatee project. We would like to commend the technical and sales teams who have worked professionally for most of this year to ensure there was a clear landing on this component, ”said Loquan.

NGC said it has strengthened its resilience in the face of a changing energy landscape and is committed to maximizing the value of Trinidad and Tobago’s energy resources, building a sustainable energy future.