BG Group plc announced today that the BG-operated
North Coast Marine Area (NCMA) Hibiscus field,
off the north coast of Trinidad, has produced first
gas into the newly commissioned Train 2 at Atlantic
LNG.
NCMA, one of the largest offshore developments
in Trinidad & Tobago waters, is intended to
supply all BG capacity in Train 2 for up to 20
years at 240 million standard cubic feet of gas
per day (mmscfd). The NCMA partnership comprises
BG (Operator) 45.9 per cent, Petrotrin 19.5 per
cent, Agip 17.3 per cent and PetroCanada 17.3 per
cent.
BG is a 32.5 per cent shareholder in the US$1.1
billion Atlantic two train expansion at Point Fortin,
which is due to increase gross liquefied natural
gas (LNG) production from 3.3 million tonnes per
annum (mtpa) to 9.9 mtpa when Train 3 comes on-stream,
scheduled for the second quarter of next year.
Martin Houston, Executive Vice President, BG Group
plc, said: "BG Group's strategy to link indigenous
reserves with world class projects has been realised
with a new gas province offshore Trinidad, and
one which underpins our shareholding in the Atlantic
LNG expansion. Our progress in Trinidad & Tobago
strengthens the Group's growing LNG position and
our increasing exploration and production activities
in the region."
In addition, BG (Operator, 50 per cent) and partner
ChevronTexaco in the East Coast Marine Area (ECMA)
have received approval from the Ministry of Energy
and Energy Industries for development of the Dolphin
Deep and Starfish fields for supply into Train
3. BG capacity in Train 3 is 125 mmscfd, which
is planned to be supplied from NCMA for the first
two years. Thereafter Train 3 is intended to be
supplied from ECMA (80 mmscfd) and NCMA (45 mmscfd).
LNG production from BG capacity in Trains 2 and
3 will be sold to El Paso Merchant Energy under
a long term contract for import into the Elba Island
LNG receiving terminal in Georgia, USA. During
2002, LNG produced from Train 2 is intended for
re-gasification at the Lake Charles importation
terminal in Louisiana and sale into the US market.
From January 1, this year, BG took control of 80
per cent of the capacity at Lake Charles, which
has the capability to receive, store, vaporise
and deliver an average daily send-out of 630 mmscfd.
Peter Dranfield, Vice President, BG Trinidad & Tobago,
said: "Our growth in gas production offshore
Trinidad & Tobago is planned to keep pace with
the rapidly expanding liquefaction plant at Atlantic
LNG which is set to become one of the world's largest
liquefaction facilities. We very much look forward
to commencement of production into Train 3 and
a successful outcome to the current negotiations
with the Government of the Republic of Trinidad
and Tobago to allow the proposed 5.2 million tonne
Train 4 to be operational in late 2005. These announcements
today reaffirm our growth in the Atlantic Basin
LNG business."
Partners in Atlantic LNG 2/3 Company are BG T&T
(32.5 per cent), BP (42.5 per cent) and Repsol
(25 per cent).
There are matters discussed
in this media information that are forward
looking statements. Such statements are only
predictions and actual events or results may
differ materially. For a discussion of important
factors which could cause actual results to
differ from the forward looking statements,
refer to the Company's annual report and accounts
for the year ended 31 December 2001.
Notes to Editors
The Government of Trinidad & Tobago approved
the Atlantic LNG Trains 2 and 3 expansion in February
2000 and the NCMA development in December 2000.
Located 40 kilometres offshore, the US$300 million
NCMA deep-water development comprises three gas
fields - Hibiscus, Poinsettia, and Chaconia - with
total proved and probable reserves of 2.4 trillion
cubic feet. The development is linked to Atlantic
LNG's Point Fortin facility via a 107 kilometres,
24-inch pipeline, the longest offshore pipeline
in Trinidad & Tobago waters. The pipeline has
the capacity to transport 400 mmscfd.
Phase 2 of the NCMA development includes drilling
three wells which are scheduled to be brought into
immediate production in the second quarter, 2003.
In Phase 3, six subsea wells are planned on the
Poinsettia field to begin production in 2009. A
possible fourth phase would involve installation
of compression facilities on the Hibiscus platform.
BG Trinidad & Tobago (BG T&T) is operator
of the Dolphin field, ECMA, in a 50/50 joint venture
with ChevronTexaco. The field supplies in excess
of 260 mmscfd to the National Gas Company of Trinidad
and Tobago under a 20-year supply contract.
A Production Sharing Contract for Block 3a, north
ECMA, was signed in April 2002 by partners BG T&T,
Operator BHP, Talisman (each with 30 per cent equity),
TotalFinaElf (10 per cent), and the Government.
BG T&T is a 26 per cent shareholder in the
US$1 billion ALNG Company which began operations
in April 1999. Train 1 exports to markets in north
eastern USA, Puerto Rico and Spain. Other shareholders
are BP (34 per cent), Repsol (20 per cent), Tractebel
(10 per cent) and National Gas Company (10 per
cent).
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