Development of Natural Gas Industry in South America - Trinidad and Tobago

Transcription

1 THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO Development of Natural Gas Industry in South America - Trinidad and Tobago FIESP 14 th International Energy Conference, Sao Paulo Brazil August 5, 2013

2 Agenda THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO History of Petroleum developments Brief look at Trinidad and Tobago Growth of Natural gas Industry Present state of Industry Trinidad and Tobago Gas Value chain Success factors in T&T Model

3 History of Global THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO Petroleum Development Earliest known oil wells were drilled in China in 347 AD Ancient records of China and Japan - allusions to the use of natural gas for lighting and heating. First documented shipment of petroleum from South America - Venezuela was in 1539 when a single barrel of oil was sent to Spain to alleviate the gout of Emperor Charles V Earliest mention of petroleum in Trinidad occurs in Sir Walter Raleigh s account of Pitch Lake in 1595; First successful oil well in modern times Baku Others include Drake well in Pennsylvania 1859, Peru 1863, Trinidad 1866 and Venezuela and Bolivia in the 1910 s

4 THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO History of Trinidad and Tobago Petroleum Development First Oil discovery in Trinidad in 1866 by Captain Walter Darwent Commercial Oil production started in 1908 in Point Fortin First Commercial Gas field development 60 years ago in Penal 1953 for electricity generation First Offshore Gas filed development Teak 1974 (Amoco) First use of gas for manufacture of Petrochemicals in Trinidad 1959 Federation Chemicals limited (Grace) First manufacture of LNG in Trinidad and South America 1999 Atlantic LNG Amoco Trinidad Oil Company, BG Trinidad, Repsol, Cabot LNG and National Gas Company of T&T (NGC) Avg. Gas Production (end of May 2013)- 4.3 bcf/d

5 Brief Look at T&T THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO Official Name Area Population Language Climate Currency Political System Economic Activity People Republic of Trinidad and Tobago 5,128 sq. km (1,980 sq. miles) 1.3 million English Tropical Dry:Jan Jun; Wet :Jul Dec TT Dollar (US$1 = TT$6.44) Democratic Republic Energy, Manufacturing, Tourism Multi-racial

6 THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO Brief Look at T&T

7 Key Economic Indicators THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO GDP 2012 US$23.8 billion GDP per capita Real GDP growth Inflation Unemployment Net Foreign Reserves Export Imports US$18, % 9.3% 4.9% US$ billion US$12.98 billion US$9.06 billion

8 THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO Energy Sector Key Indicators Avg. Crude Oil Production (2012) Avg. Oil Refining Throughput (2012) Avg. Natural Gas Production (2012) Avg. NGL Production (2012) 3P Gas Reserves (as of Jan 1st, 2013) Exploratory Gas Resources (as of Jan 2013) 81,753 bpd 127,000 bpd 4.1 bcfd 35,314 bpd 25.2 Tcf 31.6 Tcf

9 Growth of Natural Gas Industry Cumulative Production ( ): Oil : > 3.5 billion barrels Gas : >3.8 billion boe 8/5/2013 9

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11 T&T Onshore and Offshore assets

12 OIL & GAS T&T Energy Value Chain Capital Build Projects Upstream (Exploration and Production) Downstream Trading Platforms Refineries Primary Petrochemicals (Ammonia & Methanol) Downstream Petrochemicals (Exploration) Seismic, Geological, & Drilling Operators (Develop Field) and (Produce) Wells & Facilities (Decommission) Wells & Facilities Storage Facilities Ammonia & Methanol Plants Refineries Melamine, UAN, Polyolefin Plastics & Speciality Chemicals Retail Sites / Stations End Users Service Providers CARIDOC Indirect Support 8/5/2013 Regulatory Agencies: 12

13 T&T Natural Gas Value Chain [8%] [29%] [56%] 8/5/2013

14 Gas Utilisation by Sector Liquefied Natural Gas Trains 1 Crude Oil Refinery 10 Ammonia Plants 1 Urea Plant 7 Methanol Plants 5 Iron and Steel Mills 6 Electricity Generation Sites 1 Ammonia-Urea Ammonium Nitrate- Melamine (AUM) Complex Liquefied Natural Gas (LNG) 56% Avg 2012 : 4.1 bcf/d Iron & Steel Manufacture 3% Other 4% Methanol Manufacture 14% Power Generation 8% Ammonia Manufacture 15%

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18 Success Factors of T&T Model Active Government involvement Institutional Arrangements Legal System Unique market related gas pricing model Availability of global market opportunities Private/ Public Sector Collaboration/Direct Foreign Investment Development of Skilled Workforce 8/5/

19 FUTURE OF NATURAL GAS INDUSTRY Cross Border Gas field development with Venezuela Oil and Gas potential of Deep Water Atlantic Basin Increasing Linkage between Energy and Manufacturing Availability of an emerging environmentally friendly fuel DiMethyl Ether -DME Gas is the fuel for 21 st Century sustainable economic development 8/5/

20 THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO THANK YOU Questions? Comments?