Trinidad and Tobago is witnessing an increase in government revenue from liquefied natural gas (LNG) exports, reported Reuters, citing Energy Minister Stuart Young.
During the country’s energy conference in Port of Spain, Young stated that LNG cargoes are being sold at premiums of 15–55% above Henry Hub prices.
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The increase in revenue is attributed to a contract overhaul, finalised in late 2023, that introduced new financial terms for the participants in the Atlantic LNG project.
This came after a five-year negotiation period aimed at enhancing revenue and reviving export volumes.
Prior to this change, LNG producers in the Latin American nation were struggling to achieve prices near the Henry Hub NGc1 (Natural Gas Front Month Futures) for cargoes exported to Europe, Asia and South America.
The government is actively encouraging producers, particularly those with offshore operations, to expedite gas production from new projects.
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By GlobalDataThis initiative aims to bolster supply to the Atlantic LNG facility, where one of the liquefaction trains has been inactive recently due to insufficient gas availability.
Young said that key offshore gas projects including Shell’s Manatee and bp’s Cypre are expected to supply up to one billion cubic feet (bcf) of natural gas by 2028.
In a bid to secure future gas output, Trinidad launched its largest auction for deep-water oil and gas exploration and production areas last month.
During the conference, Trinidad’s Prime Minister Keith Rowley expressed hope that Donald Trump’s incoming administration will uphold two key US licences for joint ventures with Venezuela, ensuring gas supply for LNG production and exports.
The increased revenue from LNG exports could potentially mitigate the expected downturn in sales of ammonia and methanol, as numerous European countries impose carbon taxes on petrochemical product imports, the report said.
More than 20 European countries have enacted carbon taxes, mostly since 2023, as part of their efforts to curb carbon emissions.
In November 2024, Trinidad signed a production sharing agreement with a bp unit to explore and produce natural gas in the shallow-water Block NCMA2.
