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(CMC) – The Trinidad and Tobago government has signed a new agreement with the BP Trinidad and Tobago (BPTT) as the oil company announced the sanction for two new gas developments offshore.
A statement from the Office of the Prime Minister said that the agreement signed on Friday concludes “the first phase of this country’s negotiations with BPTT for future gas production and projects in Trinidad and Tobago”.
It said the agreement was the result of negotiations which also dealt with the future liquefied natural gas (LNG) pricing to be applied to Atlantic LNG which will accrue significantly enhanced annual revenue for the country.
“It also entailed the extension of the South East Galeota Exploration & Production licence. The agreement will also see BPTT begin the Cassia Compression Project as well as the Matapal Gas Project which will develop the gas resources discovered by BPTT in 2017. The energy company is expected to invest US$$1.8 billion in these two projects,” the statement noted.
In a separate statement, BPTT said the sanctioning of the Cassia Compression project will enable it to access and produce low pressure gas reserves from currently-producing fields in the Greater Cassia Area, maximizing recovery from these existing resources.
“The project will involve the construction of a new platform, Cassia C, BPTT’s 16th offshore facility. Gas production from the Greater Cassia Area will be routed to Cassia C for compression before being exported via the adjacent existing Cassia B platform. First gas from the facility is expected in third quarter of 2021,” the statement said.
Cassia C is located 57 kilometres off the south-east coast of Trinidad. The platform will have a throughput capacity of 1.2 billion standard cubic feet of gas a day (bscfd) BPTT said.
BPTT Regional President Claire Fitzpatrick said the project will be important in maintaining the stability of Trinidad’s gas production and the supply to downstream customers and Atlantic LNG.
“The final investment decision for this project was made possible with the conclusion of the first phase of negotiations with the government of Trinidad and Tobago, which included resolution of several commercial issues,” he added.
BPTT said that the Matapal project will develop the gas resources discovered by BPTT in 2017 with the Savannah exploration well.
“The project will be a three-well subsea tie-back to the existing Juniper platform. With production capacity of 400 million standard cubic feet of gas a day, first gas from Matapal is expected in 2022,” it added.
BPTT said that both projects represent continued investment and development of BPTT’s acreage and will help ensure that BPTT continues to meet its supply commitments to both Trinidad’s National Gas Company and Atlantic LNG.