Page 7 - GLNG Week 30 2021

GLNG COMMENTARY GLNG

call for reorganising Atlantic LNG’s ownership remarked to the Trinidad Express newspaper,
structure. Briefly speaking, the Anglo-Dutch “Contrary to what has been reported by one
major is looking to consolidate equity stakes so media organisation, there is no ‘ongoing fight’
that each investor ends up with an interest in the between BP and the majority shareholder in
whole plant, rather than multiple stakes of dif- Atlantic LNG. Instead, it declared that it had
ferent size in each production train. been “working closely” with Shell and NGC,
as well as the government of Trinidad and
NGC’s dissatisfaction Tobago, to explore the shareholder restructur-
The disagreements between BP and Shell appear ing plan.
to be a source of irritation for NGC. This plan “offers an opportunity to improve
According to local media sources, the latter operating efficiency and commercial align-
company has been complaining that neither of ment,” BP added. It went on to say that its own
the two majors are working actively enough to wish was “to arrive at an outcome that improves
ensure deliveries of feedstock to Atlantic LNG’s value to the country while ensuring we have a
Train 1 so that it could remain in operation. It competitive energy sector that can continue to
has also bristled at the prospect of seeing Train 1 attract the investments required to keep the pro-
shut down permanently after spending $250mn duction profile needed to satisfy downstream
or more on the turnaround programme, some and LNG demand.”
observers claim. Shell has made similar comments. In
NGC is also said to have criticised BP and response to questions from Trinidad & Tobago Under these
Shell for not matching its efforts to find new Guardian, it touted the ownership reorganisa-
sources of gas for Train 1. The state-run firm tion plan, saying that this change would facil- circumstances,
has talked about sourcing gas from smaller itate longer-term investments in the region. Shell’s
upstream operators such as Touchstone Explo- “Shell – together with Atlantic, its fellow share-
ration, which recently reported a discovery at holders and the government of Trinidad and announcement
the Ortoire field. Tobago – have been working co-operatively on
Publicly, NGC has been less critical. In a the commercial restructuring of Atlantic [LNG] of the launch
statement issued on July 17, it acknowledged with a view to ensuring the sustainability of the
that shareholders in Train 1 were involved in entity as a world-class LNG facility,” it said in an of production
sensitive talks about the fate of the facility and email message. operations at
indicated that it was still hopeful of striking a Under these circumstances, Shell’s
deal with BP and Shell. “The government and announcement of the launch of production Block 5C is not
[NGC] have ensured that Atlantic [LNG] is pre- operations at Block 5C is not likely to change
served in the best position to allow all options anything. It does raise the possibility that some likely to change
with respect to its future to be available whilst of the gas flows from this new field might be
these discussions are ongoing,” it said. used to bolster throughput levels, but it does anything.
not address the other issues at stake. As such,
BP and Shell respond NewsBase does not expect the shareholders in
Meanwhile, BP has also downplayed reports of Train 1 to strike any new agreements or make
disagreement between shareholders in Train 1. much progress toward resolution of their dis-
As one of the company’s local subsidiaries putes before the end of this year.™

Week 30 30•July•2021 www. NEWSBASE .com P7