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COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

(Photo: Atlantic LNG)
What’s next for

Atlantic LNG’s Train 1?

As Shell brings a new gas-bearing block on stream, shareholders in the plant’s first
production train are reportedly at odds over feedstock supplies and ownership structures

TRINIDAD and Tobago’s natural gas industry in which Shell is the largest shareholder.
has had some good news this week, as a subsidi- However, it will probably not help resolve
WHAT: ary of Royal Dutch Shell (UK/Netherlands) has outstanding questions about the fate of Atlantic
Shell, BP and NGC are succeeded in launching production at the off- LNG’s first production train.
reportedly holding sensi- shore Block 5C, located within the East Coast
tive talks on gas supplies Marine Area (ECMA). Ownership structure
for Train 1, as well as a In a press release, Shell reported that Block The gas liquefaction plant is unusual, in that the
proposed change in the 5C, also known as Project Barracuda, was facility is not owned by a single company or a
ownership structure. expected to yield 140mn cubic feet (3.96mn consortium. Instead, it has four different sets of
cubic metres) per day of gas in the near term, owners, or one set for each of its four production
WHY: with output peaking later at 220 mmcf (6.23 trains.
The production train has mcm) per day. It also said it intended to process More specifically, Train 1 is owned 46% by
been off line for mainte- some of the gas from the field at the Atlantic Shell, 34% by BP (UK), 10% by Trinidad and
nance and may be shut
down indefinitely. LNG plant for delivery to the world market. Tobago’s National Gas Co. (NGC) and 10% by
This development is a milestone for Shell, China Investment Corp. (CIC). Meanwhile,
WHAT NEXT: in that Block 5C is one of the company’s largest Trains 2 and 3 are owned 57.5% by Shell and
No major changes are undertakings in Trinidad and Tobago since its 42.5% by BP, while Train 4 is owned 51.11% by
likely before year-end. acquisition of BG Group in 2016. It will also help Shell, 37.78% by BP, and 11.11% by NGC.
ensure deliveries of feedstock to Atlantic LNG, Currently, Train 1 is idle.

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