Vision of Growth for Trinidad and Tobago Natural Gas Industry

Abstract

Abstract Trinidad and Tobago continues to develop a world-class natural gas industry as the economy transforms from a predominantly oil-based economy to one, increasingly fuelled by gas. The country is poised for significant additional growth in gas and gas-based industries as the relatively large gas resource pool continues to be enhanced through successful exploration and the discovery of new resources. With its solid reserve base, stable political climate, reliable economy, proximity to market and competitive market focus, Trinidad and Tobago continues to enjoy as good as, if not a better opportunity set than any country in the world, for further developing the natural gas business. We, at BP Amoco, have had a mutually beneficial relationship with the government and people of Trinidad and Tobago and remain committed to partnering in the future development and growth of the energy business in Trinidad and Tobago. Introduction The Republic of Trinidad and Tobago has an oil and gas industry that predates the modern petroleum industry (Ref. 1). The first successful well was reportedly drilled in 1866 in south Trinidad. Commercial oil production began in 1908 and for the next sixty years the emphasis was on oil production. Natural gas was considered then more of a nuisance than a benefit, and the unavoidable associated gas produced with the oil was limited to providing fuel and gas lift for maintaining oil production. Commercial use of natural gas began in 1959, when Federation Chemical Ltd., a subsidiary of W. R. Grace, pioneered the use of natural gas as a feedstock to manufacture anhydrous ammonia. The next historical milestone for natural gas came five years later when commercial consumption increased with the use of gas as a primary fuel for electric power generation. In 1969, Amoco Energy discovered significant gas reserves in its license area off the East Coast. This discovery was followed in 1975 by the formation of The National Gas Company (NGC) of Trinidad and Tobago. The NGC was chartered to manage and sell natural gas. In discharging their role, they have facilitated the impressive expansion of the natural gas industry that has been seen from 1990 to 1997. The following sections discuss the country's strong gas resource base, the Government's aggressive market pursuits, rapidly expanding infrastructure and the security of gas supply situation: all ingredients for creating a vision of significant growth in the natural gas industry. Growth of the Natural Gas Industry in Recent Years The Natural Gas industry in Trinidad and Tobago has demonstrated continuous growth with gas sales increasing by approximately eight percent per year from 1990 to 1997. The country's Minister of Energy and Energy Industries, Senator Finbar Gangar, in his address to the Centre for Global Energy Studies Conference in London (Ref. 2) was quoted as saying Currently, Trinidad and Tobago is in the midst of an intense industrialisation thrust, with a major focus on the utilisation of natural gas as the main driver of this thrust."