Page 10 - GLNG Week 09 2022

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Trinidad and Tobago’s PM comments on

potential lost revenue from LNG sales

POLICY TRINIDAD and Tobago’s Prime Minister Keith and chairman of Caribbean Airlines Ronnie
Rowley claimed at the Sixth Summit of the Gas Mohammed. The topic of the forum was the use
Exporting Countries Forum (GECF) that his of natural gas to fuel the global post-pandemic
country had lost billions of dollars in potential economic recovery and achieve sustainability.
revenue from LNG sales. Prior to the coronavirus (COVID-19) out-
The root cause of this loss is believed to be break, Trinidad and Tobago’s energy sector was
the expiration of LNG licences as well as what enjoying a strong financial uptick; a performance
the government characterises as the unequal that the prime minister attributed to his govern-
distribution of LNG revenues between itself ment’s natural gas strategies. He furthermore
and gas companies. “It is in situations like this revealed that the nation’s post-pandemic recov-
that the value of the membership of Trinidad ery was on track, spurred on by the introduction
and Tobago in the GECF takes on added sig- of an array of gas projects that were launched
nificance,” the prime minister stated during his in 2021 as well as several that are scheduled for
GECF address. launch in 2022.
According to Rowley, co-operation between Another issue that Rowley addressed was the
Trinidad and Tobago and the GECF is necessary Caribbean nation’s transition to a low-carbon
as his country looks to restructure its LNG busi- economy. Trinidad and Tobago has commit-
ness and navigate the latest price changes. ted itself to this vision, and the transition of the
Joining Rowley as part of his nation’s del- domestic economy is underway, he declared.
egation at the forum was Energy Minister The cost of Trinidad and Tobago’s efforts
Stuart Young, President of Trinidad and Toba- to realise this vision is estimated to be around
go’s National Gas Co. (NGC) Mark Loquan $2bn.™

ASIA

Bangladesh to buy spot LNG cargo from Vitol

POLICY STATE-OWNED Bangladeshi firm Petrobangla
is reportedly set to award a contract to commod-
ity trader Vitol for a spot LNG cargo to be deliv-
ered in March.
The state-owned BSS news agency reported
that Petrobangla would pay $29.70 per million
British thermal units ($821.50 per 1,000 cubic
metres) of LNG under the contract. It added
that the country would pay more than BDT10bn
($118mn) for the cargo in total. This is more than
four times the price Petrobangla paid to Vitol on
the spot market in March 2021.
The price is also only slightly below the $30 the two cargoes for February delivery, and the
per mmBtu ($829.80 per 1,000 cubic metres) Vitol deal shows that it is having to continue buy-
that Bangladesh paid for two spot cargoes it ing from the spot market.
recently bought for delivery in February. “Prices are too high but we have no other
Bangladesh typically buys more LNG on option but to buy to keep the economy running,”
the spot market than certain other Asian Reuters quoted an official with knowledge of the
countries, which leaves it exposed to volatil- Vitol deal as saying.
ity. Indeed, it decided to stop buying LNG on Vitol was the only seller to participate in the
the spot market late last year because prices tender.
were too high, but has been forced to resume Bangladesh also has two long-term supply
spot purchases to meet demand. deals in place with Qatargas and Oman Trading
The country had been seeking spot cargoes International and there is scope for new agree-
in January but is reported to have been forced to ments to be negotiated. Also this week, an Aus-
cancel planned purchases by bids as high as $51 tralian government report identified Bangladesh
per mmBtu ($1,410.66 per 1,000 cubic metres). – along with India – as a major emerging market
It then resumed spot purchases when it bought for Australia’s LNG.™

P10 www. NEWSBASE .com Week 09 04•March•2022