Future Development of Gas Industry of Trinidad and Tobago

Abstract

Abstract The paper presents a review of the development of the gasindustry in Trinidad and Tobago. The role of The National Gas Company of Trinidad and Tobago Limited in the development of this industry is discussed. The paper reviews the upstream and downstream operations, the pipeline network system and future development in these aspects of the gas industry. The factors which make Trinidad and Tobago an attractive country for foreign investor in the gas industry both at upstream development and gas utilization are examined. The natural gas sector of the economy has become the leading economic sector due to the government's policies with respect to the use of the natural gas reserves and the promotion and development of a range of petrochemical and gas based industries and the provision of fiscal and other incentives. Given the present state of industrial development, the future development of this industry is of significant importance. Historical Review The history of the energy sector dates back to the latter part of the nineteenth century. The first successful oil well was drilled in South Trinidad in 1866 and commercial production commenced in 1908. During the period 1908 to the 1960's the emphasis was on the production of crude oil. Associated gas which was produced with the crude oil was considered a nuisance and flaring of natural gas was wide spread in the industry. The natural gas industry in Trinidad and Tobago dates back to early 1940's when gas produced as associated gas was used as a fuel and for gas lifting operation. During this period natural gas was piped to the oil company's housing areas in Point Fortin, Penal, Forest Reserve, Palo Seco and Guayaguayare for water heating and cooking. Gas lift operations and gas injection for secondary recovery of crude oil were fairly widespread in the oil producing areas of Trinidad and at one time there were up to 20 compressor stations dedicated to this production method and pressure maintenance respectively. Natural gas was first used commercially as a fuel for power generation at the Penal power station in 1953 and at Trinidad Cement Limited, Claxton Bay in 1954. In 1959, the establishment of the first anhydrous ammonia plant in the country by Federation Chemicals Limited was based on natural gas as a feedstock for the manufacture of ammonia. This was followed by the expansion of natural gas usage for country wide generation of electricity when the power plant in Port of Spain commenced use of natural gas in 1964. This growth in the demand for natural gas in the sixties required the development of the pipeline infrastructure to support the expanded use of natural gas. The first was the construction of a 16-inch pipeline from Penal to Port of Spain. In 1968 the country's most significant discovery of natural gas off the south east coast of Trinidad was made by Amoco Trinidad Oil Company.