Natural Gas

Four (4) multinational companies continue to dominate the production of natural gas in Trinidad and Tobago namely, bpTT (51%), Shell (21%), EOG Resources (15%) and BHP Billiton (11%). However, they have not been producing sufficient gas to meet the needs of the country’s major users, Atlantic is the largest single user of natural gas in Trinidad and Tobago and uses 53% of total natural gas supplies to produce liquefied natural gas (LNG). Ammonia, methanol and urea producers together use 33% and power generation use 9%. The remaining 5% of gas is used by cement, iron and steel manufacturers, smaller manufacturers, Petrotrin’s refinery and Phoenix Park Gas Processors Limited (PPGPL).

The main challenge facing the natural gas industry in T&T is that there is a shortage of gas. This means that the amount of gas being produced is not enough to meet the needs of those who need it the most – particularly Atlantic (which produces LNG), petrochemical plants and power generators.

Part of the solution lies in finding alternative supplies of gas (e.g. cross-border gas) and reviewing the taxes and incentives offered to companies to encourage them to explore for and produce more gas.

 

The Uses of Natural Gas in Trinidad and Tobago