Trinidad and Tobago Invites Neighbors to Process Oil and Gas in Country

Key Takeaways:

  • Trinidad and Tobago is inviting its energy-rich neighbors to process their oil and gas in the country to produce natural commodities such as liquefied natural gas (LNG) or petrochemicals.
  • The move is part of the country's effort to utilize its spare capacity and augment its hydrocarbon processing capacity.
  • Trinidad has a dormant liquefaction train that could be restarted to export LNG made from gas from other nations, and an extra oil refinery that it can use to process oil from other Caribbean nations.
  • Prime Minister Keith Rowley is interested in "linking the energy and industrial transformations to a collaborative economic strategy" to ensure that the Caribbean region makes the most of its abundant oil and gas resources.
  • Trinidad's hydrocarbon processing capacity is impressive, with three liquefaction trains in service, seven methanol plants, and ten ammonia plants that can produce 5.2 million metric tons per year.
  • The government of Trinidad has declared that it will export some of the LNG that will be made from Venezuela's gas to Jamaica and the Dominican Republic.
  • Trinidad has pursued a "deliberate policy" to engage its regional neighbors in cooperation in the energy sector.
  • This move is expected to increase Trinidad's revenue and diversify its customer base while simultaneously providing opportunities for neighboring countries to monetize their hydrocarbon resources.

Trinidad and Tobago, the Caribbean nation with an abundance of experience in the hydrocarbon industry, is inviting its energy-rich neighbors to process their oil and gas in the country to produce natural commodities such as liquefied natural gas (LNG) or petrochemicals. The nation's Prime Minister, Keith Rowley, announced the invitation at Guyana's International Energy Conference in Georgetown. This move is part of the country's effort to utilize its spare capacity and augment its hydrocarbon processing capacity.

Utilizing Spare Capacity:

Due to a lack of natural gas production, Trinidad has a dormant liquefaction train that could be restarted to export LNG made from gas from other nations. Additionally, there is plenty of room for the nation to increase petrochemical production. Trinidad has an extra 140,000 barrels per day oil refinery that it can use to process oil from other Caribbean nations.

Collaborative Economic Strategy:

Prime Minister Rowley is interested in "linking the energy and industrial transformations to a collaborative economic strategy" to ensure that the Caribbean region makes the most of its abundant oil and gas resources. This includes providing opportunities for neighboring countries to monetize their hydrocarbon resources in Trinidad and Tobago, with the goal of enhancing regional cooperation in the energy sector.

Hydrocarbon Processing Capacity:

Trinidad's hydrocarbon processing capacity is impressive, with three liquefaction trains in service, seven methanol plants, and ten ammonia plants that can produce 5.2 million metric tons per year. The nation has a successful history in the hydrocarbon sector. In January 2023 it was granted a U.S. license that will allow it to jointly develop Venezuela's promising offshore Dragon field and import gas for the production of LNG.

Exporting LNG to Jamaica and Dominican Republic:

The government of Trinidad has declared that it will export some of the LNG that will be made from Venezuela's gas to Jamaica and the Dominican Republic. This is part of the country's efforts to increase its revenue and diversify its customer base.

Collaboration with Regional Neighbors:

Prime Minister Rowley has said that Trinidad has pursued a "deliberate policy" to engage its regional neighbors, including Venezuela, Barbados, Grenada, Guyana, and Haiti, in cooperation in the energy sector. According to official statistics, the nation produces about 2.8 billion cubic feet of gas per day.

Conclusion:

Trinidad and Tobago's invitation to its energy-rich neighbors to process their oil and gas in the country is an excellent opportunity to strengthen regional cooperation and utilize spare capacity. With its impressive hydrocarbon processing capacity and extensive experience in the industry, Trinidad is poised to become a hub for the region's energy sector. This move is expected to increase Trinidad's revenue and diversify its customer base while simultaneously providing opportunities for neighboring countries to monetize their hydrocarbon resources.