Trinidad and Tobago Gas Policy and Programmes presented by Dr' Lenny Saith The Honourable Minster of

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Trinidad and TobagoGas Policy and
Programmespresented by Dr. Lenny SaithThe
Honourable Minster of Energy and Energy
Industries The Global LNG Financing
SummitMoscow , Russia June 15th 2006
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Presentation Outline

• 1. General Overview

2. Government strategies in gas development

• Profile of Trinidad and Tobago LNG Industry

4. Creating the future for Trinidad and Tobago
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General Overview

• -Economic
• -Industry
• -Milestones

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Trinidad and Tobago
Strategically Located for Access to Major Markets
Distances in Miles
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TT Gas Reserves

• Identified Exploratory Resources 32.2 Tcf
• Unidentified Exploratory Resources 28.0 Tcf
• Based on Revised Audit by Ryder Scott Co.
  January 1 2005

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Key Economic Indicators 2005
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Historical Milestones in Gas Development

• 1959 Pioneer Gas-Based plant
• Gas used as feedstock - Manufacture of Ammonia
• Federation Chemical - subsidiary W.R. Grace
  1959
• 1975 Government owned and operated National
  Gas Company NGC established
• Decision to utilize gas for
  industrial development.
• 1981 First NEW gas based plant at Point Lisas
  Industrial Estate .
• ISCOTT-Iron and Steel Company of
  Trinidad and Tobago

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Historical Milestones in Gas Development contd

• 1999 Pioneer LNG Plant in Western Hemisphere
• First LNG Train at Atlantic LNG
  facilities comes on stream
• 2005 Worlds Largest mega-methanol facility
  starts production
• Methanol Holdings Ltd. M5 plant (5,400
  tonnes/day)
• 2005 Worlds Largest LNG liquefaction
  facility as
• Atlantic LNG Train 4 comes on stream

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Key Success Factors
Technology Improvements
Increasing Exploration
Strategic Location to Market
Government support
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Governments Decision-Making Model
The Cabinet of Government of the Republic of
Trinidad and Tobago
Standing Committee on Energy Chairman Prime
Minister Mr. Patrick Manning
Ministry of Energy Energy Industries Minister
Dr. Lenny Saith
Inter-Ministerial Committee on Energy Chairman
Dr. Lenny Saith
State Enterprises
Natural Gas Export Task Force Chairman Dr. Ken
Julien
Petrotrin Executive Chairman Mr. Malcolm Jones
National Gas Company Chairman Mr. Keith Awong
National Energy Corporation President Mr.
Prakash Saith
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Government Strategies
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Governments Strategic Positioning

• Diversification in Upstream licenses
• Introduction of PSCs in 1974 facilitated GORTT as
  a major partner in development
• Increased market competition
• Mechanism for fuelling exploration activity
  resulting in proliferation of multi-national
  investment
• Ownership in downstream assets
• Kick- start domestic gas industry development
• Usher- in the LNG industry
• Promote positive investment climate
• Stable Government
• Competent work-force
• Prudent Fiscal incentives

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A successful strategy for METHANOL
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.. ..AMMONIA
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Train 1 - 1999
and ..LNG
Trains 2/3 2002/03
Train 4 - 2005
Capacity15.0 mtpa
Capacity 3.3mtpa
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Profiling the Trinidad and Tobago LNG Industry
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Government approved LNG Trains Corporate
Structures
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Trinidads Impact on US LNG Imports
US LNG Imports 2005
US LNG Imports 1999
Total 631.2 bcf
Total 163.4 bcf
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Creating the Future
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Primary drivers of future development

• Extracting more value to GORTT
• Optimal gas allocation to domestic/LNG
• Human Resource Development
• Institutional Strengthening

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Extracting more value

• Strategic Investment along the LNG value chain
• Liquefaction
• Shipping
• Marketing
• Create a new corporate LNG Expansion model
  Train X
• Increase Government shareholding in Train X

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Optimise gas allocation
Category AConfirmed Projects CLICO AUM
(UAN/Melamine) ANSA UAN (Ammonium/UAN) Alutrint
Aluminum and Downstream Essar Steel (hot
briquetted iron) and Downstream Category
B1Investment Decision pending Aluminum and
Downstream Ammonia/UAN Plant Ammonia/Urea
Plant Methanol/Acetic Acid/Formaldehyde
Resin Additional AUM Train Polypropylene
Complex Category B2Investment Decision beyond
2006 LNG Expansion
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Human Resource Development

• The University of Trinidad and Tobago UTT as
  a
• vehicle for the transition of Trinidad and
  Tobago
• from
• Natural Resource Base Human
  Resource Base
• Industrial Society Knowledge Society
• Importer of Expert Knowledge Exporter
  of Energy Expertise

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Institutional Strengthening

• In December 2005 , a Government approved entity ,
  Trinidad and Tobago LNG Company TTLNG was
  established . This entity is a subsidiary of the
  N.G.C and will
• conduct all GORTT LNG business
• actively manage Governments assets and
  investments in the LNG sector
• promote and develop al new business opportunities
  in the LNG Sector

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The Future in Summary

• New model for expansion
• Integrated model into downstream offshore
• Partnerships
• New entrants
• Refocus of Government participation
• New corporate structure
• Optimise shareholding
• New Regime for Natural gas production
• Supply to domestic industries
• LNG Export
• Cross border initiatives
• Expand supply options

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Gas Allocation Summary
Current 2006
Projected 2016
Total 5853 MMscfd
Total 3920 MMscfd
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THANK YOU!