Shell and Trinidad's National Gas Company sign new supply agreement
Sept 22 (Reuters) - Shell PLC on Friday signed an agreement to supply Trinidad and Tobago's National Gas Company (NGC) with natural gas through 2036, including from the yet-to-be developed Manatee offshore field, according to the state gas company.
Trinidad and Tobago's government is pressing gas producers to accelerate supplies for the county's liquefied natural gas (LNG) output, and for its petrochemical and power sectors, which are operating at reduced capacity amid a gas shortfall.
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Under the deal, Shell would provide NGC with at least 150 million cubic feet per day (mcfd) of gas from the Manatee offshore field, part of the shared Trinidad-Venezuela Loran-Manatee discovery, estimated to hold 10 trillion cubic feet (TCF) of natural gas.
"Manatee represents a significant resource for Trinidad and Tobago," said NGC President Mark Loquan. "We do recognize that we have some distance to travel before we can access gas from Manatee, but we are committed to the outcome and optimistic that we can bring this project to fruition."
The contract "is further evidence of Shell's commitment to partner with the Government of Trinidad and Tobago," said Shell Senior Vice President Eugene Okpere.
Venezuela's President Nicolas Maduro previously authorized Trinidad and Tobago to individually develop its 2.7 TCF share of the Loran-Manatee field.
The deal calls for Manatee's first gas to be available in 2028, people familiar with the matter said.
Manatee is expected to produce up to 700 mcfd, with 550 mcfd going to LNG and the remaining gas being sold to NGC for the petrochemical sector, the people said.
The agreement requires NGC to pay for 50% of the 150 mcfd it agreed to receive if it cannot accept the daily contracted volume, the people said.
Shell also has agreed to bring its gas to shore at NGC's Beachfield facility, which will allow NGC to increase value by processing the liquids from Manatee, the people said.
(Reporting by Curtis Williams in Houston; editing by Timothy Gardner)