PORT OF SPAIN, Oct 27 (Reuters) – Trinidad and Tobago’s state-owned gas company has started work on the design of a small-scale liquefied natural gas (LNG) facility that could help the Caribbean move away from power generation with oil base, firm. told Reuters.
Trinidad is Latin America’s largest LNG exporter and the project, expected to be operational by 2025, will have a handling capacity of up to 500,000 tons per year, the National Gas Company (NGC) said. The facility, capable of storing, handling and transporting LNG for the region, is intended to be scalable to allow for expansion as demand grows.
“The project aims to support the regional shift in the energy mix to a lower carbon and lower emission molecule chain,” NGC said in a statement to Reuters on Wednesday.
Much of the Caribbean is dependent on refined products, including petroleum and petroleum for energy production.
Trinidad’s Energy Minister, Stuart Young, said last week that the Caribbean country plans to increase LNG exports to its neighbors for power generation and petrochemicals, but added that more natural gas is needed for it to contribute significantly to global supplies.
Trinidad and Tobago and Peru are the only LNG exporters from Latin America.
LNG producers in Trinidad have increased supplies to Europe this year amid strong demand and high prices.
NGC owns 11% of the fourth liquefaction train of Trinidad’s flagship Atlantic LNG project, and 10% of the first train, which has been idle since late 2020 due to a lack of gas supply.
The LNG to be handled by the plant will be sourced from the Atlantic LNG project. NGC said it will continue to sell the fuel to customers in other regions and will evaluate the possibility of LNG shipments via ISO containers that can be loaded onto feeder ships, or via small LNG carriers if economic.
For shipments via LNG carriers, regasification terminals will be required at destinations.
Reporting by Curtis Williams; Editing by Susan Fenton
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