News Americas, New York, NY, 26 September 2024Shell has been named the preferred bidder for a much-sought-after shallow water block in Trinidad and Tobago, according to sources cited by Reuters. The decision comes as the Caribbean nation aims to revive its liquefied natural gas (LNG) and petrochemicals sectors, which have been hit by declining gas production.
Shell beat out industry heavyweights bp and EOG Resources in the bidding process for the coveted Modified U(c) block, which was the most desirable of 13 blocks offered during the country’s shallow water auction last year. Official estimates suggest that these blocks contain a total of 13.4 trillion cubic meters of natural gas.
This win is of particular importance to Shell, as the company is a key stakeholder in Trinidad’s Atlantic LNG project, which produces 15.3 million tonnes of LNG per year. Shell, along with bp, is keen to secure additional gas supplies to support the project’s liquefaction trains.
Negotiations between Shell and the Government of Trinidad are still ongoing, with further details of the deal expected soon. While neither Shell nor bp have commented publicly, the announcement marks a strategic win for Shell, especially in light of the recent investment decision in the Manatee gas field in Trinidad’s East Coast Offshore Area.
The Manatee field, part of the Loran-Manatee discovery, which lies on the maritime border between Trinidad and Venezuela, will increase Shell’s gas production capacity. The development will include a pipeline connecting the offshore installation to Trinidad’s onshore gas processing facility.
EOG Resources and bp, which submitted bids for other blocks in the auction, have yet to respond to their bids.
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