BG Group signs heads of agreement for domestic gas sales in Trinidad

Jan. 5, 2007
BG Group Plc. and partner Chevron have entered into heads of agreement with the National Gas Co. of Trinidad and Tobago Ltd. to supply 220 MMcf/d of gas for up to 15 years beginning on Jan. 1, 2009.

Offshore staff

READING, UK -- BG Group Plc. and partner Chevron have entered into heads of agreement with the National Gas Co. of Trinidad and Tobago Ltd. to supply 220 MMcf/d of gas for up to 15 years beginning on Jan. 1, 2009.

The gas will be used in the domestic natural gas market. A fully termed gas sales agreement is expected to be finalized in 2007.

"The proposed agreement underpins the commercialization of 1.2 tcf of currently undeveloped gas in the East Coast Marine Area (ECMA)," says Martin Houston, BG executive vice president and managing director, North America, Caribbean, and global LNG.

"We remain committed to our extensive exploration and production activity in the East and North Coast Marine Areas (NCMA) as well as the onshore Central block and will continue to work closely with the government to promote further expansion and recovery of Trinidad & Tobago's natural gas resources,"

The BG Group-operated ECMA contains four natural gas fields: Dolphin, Dolphin Deep, Starfish, and Manatee. The Dolphin field, which began production in March 1996, supplies 275 MMcf/d of natural gas to NGC under a 20-year supply agreement. Dolphin Deep began production in August 2006 and supplies 80-100 MMcf/d to Atlantic LNG (ALNG) Train 3 and 120 MMcf/d to ALNG Train 4. The Starfish field will be developed to fulfill ALNG Train 3 and Train 4 contracts when Dolphin Deep goes into decline. The Manatee field, discovered by BG and Chevron in January 2005, is part of a cross-border accumulation that stretches into neighboring Venezuela. Monetization options for Manatee gas are under review. According to BG, exploration drilling plans within the ECMA are being evaluated.

The BG Group-operated NCMA, 40 km (25 mi) off the north coast of Trinidad, includes four gas fields: Hibiscus, Poinsettia, Chaconia, and Ixora. These fields supply natural gas to Atlantic LNG Trains 2, 3, and 4.

1/5/2007