Continuing drilling for large gas reserves in Trinidad and Tobago has given BP and partners the clout they need to expand their liquefied natural gas (LNG) project in the twin nations.
Apparently tired of dealing with stranded gas assets, the oil and gas industry has blazed full steam ahead into the brave new world of LNG. One driver for this has been the discovery of huge gas reserves in parts of the world not liberally served by pipeline infrastructure. But other drivers also have hastened the move.
According to an Internet market research organization, www.emerging-markets.com, additional incentives include global energy liberalization initiatives, drops in project costs due to advances in technology, innovative project management techniques that make the projects more viable and a growing emphasis on gas as the preferred fossil fuel to meet environmental objectives.
The result was a doubling of LNG imports between 1998 and 2000, said Don Juckett, director of the Office of Fossil Energy for the US Department of Energy. But building new facilities presents a challenge due to jurisdiction issues for offshore facilities, siting issues for onshore facilities and safety concerns for both.
Despite these constraints BP is forging ahead with an ambitious LNG project. The company formed Atlantic LNG of Trinidad & Tobago with National Gas Co. of Trinidad & Tobago (NGC), BG, Repsol and Cabot in July 1995 to develop an LNG plant in the Caribbean Sea. (Cabot's share later was acquired by Tractebel North America LLC.)
In 1999 the Atlantic LNG Train 1 facility became the first greenfield LNG plant to
be built in the Western Hemisphere in 25 years. Designed to produce about 3 million tonnes a year of LNG for export and 6,000 b/d of gas liquids, the facility has produced at or above design capacity since inception.
The site covers about 208 acres of partially reclaimed land at Point Fortin, Trinidad, and has a 2,300-ft (700-m) jetty to accommodate LNG carriers.
The plant uses an improved version of the Phillips Optimized Cascade process. Plate-fin heat exchangers support the cooling process, with propane, ethylene and methane as refrigerants.
The plant is designed to receive 452 MMcf/d of gas. Under a 20-year supply agreement, BP Trinidad & Tobago supplies all feed gas to Train 1 via a 36-in. pipeline from gas fields off the southeast coast.
Two expansion trains under construction south of the existing train will make the port a leading international LNG terminal. The expansion is expected to triple the existing output of LNG, and construction is expected to be complete by 2003.
Who gets the gas?
Tractebel LNG purchases 60% of Train 1 production under a 20-year contract and sells it to the northeastern United States and Puerto Rico, principally for power generation. Repsol affiliate Enagas of Spain purchases the remaining 40% for the conventional Spanish market. Tractebel and Enagas also supply carriers for shipment to Boston, Mass., Puerto Rico and Spain.
The local government originally expressed some concerns about the expansion, fearing too much of Trinidad's gas would go for export rather than the domestic market. However, when BP made two huge discoveries in May and October 2000, about 5 Tcf of possible reserves were added to the country's 80 Tcf reserve base. Of about 24 Tcf of proven gas reserves, 3.2 Tcf will be exported during the next 20 years by the first train.
Meanwhile another giant discovery is fueling plans for yet another train. BP Trinidad & Tobago discovered another 1 Tcf off the east coast of Trinidad in 2001, enough to support the nation's gas needs for 50 years.
If the proposal is accepted, the fourth train would be built south of the existing trains and would produce 5.2 million tonnes per year of LNG, the largest train proposed globally. A new 56-in. pipeline would support the expansion, and the train would be complete around the end of 2005.
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