Atlantic CEO Nigel Darlow has said that despite the recent challenges in the global liquefied natural gas markets, Trinidad and Tobago’s LNG will always be competitive and in demand.
Darlow explained that while changes in the LNG market, such as supply and demand and commodity prices were creating uncertainty, Trinidad and Tobago’s LNG would always have a strong competitive advantage.
This is as a result of Atlantic being built at a time when construction costs were considerably lower compared to new facilities being built today, he said at the company’s seventh annual CEO’s Sustainability Awards last week.
Darlow also highlighted that Atlantic achieved over seven and half years of operating without a lost zime injury.
The CEO said that currently Atlantic LNG is suffering from significant gas shortfalls, which if not addressed will damage its reputation as a reliable LNG producer on the world stage.
“The industry is responding,” Darlow added. “We currently have more rigs drilling in Trinidad waters than we ever have before. In my simple way of looking at it, the more wells you drill, the more oil and gas you will find and ultimately bring on line. But it’s going to take us time.”
Darlow hopes that arrangements can be made for swift commercialization of the cross-border Loran/Manatee field.
He added that Atlantic LNG’s shareholders will be investing $2 billion over the next five years in the company.
Trinidad’s Minister of Energy and Energy Affairs, Kevin Ramnarine, highlighted the increased activity in the upstream industry aimed to alleviate the supply situation by 2017.
“Getting the upstream right is very important to correcting the supply problem in Atlantic,” Ramnarine said. “In the middle of 2010, there was one rig working here offshore. There are seven rigs working in our water right now, and that will soon go to eight.”
He noted that the drilling activity will be higher in 2015 compared to the year before adding that Trinidad and Tobago has to sustain that trend in the future. The minister also added that in the short term the government would work on creating an environment that provided incentives for stranded small gas opportunities.
Atlantic LNG operates the 14.8 mtpa Point Fortin facility consisting of four liquefaction trains.
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Image: BG Group