Atlantic LNG Terminal

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Atlantic LNG Terminal is an LNG export terminal in Trinidad and Tobago.

Location

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Project Details

Project Details, Train 1

  • Operator: Atlantic LNG[1]
  • Owner: Shell (46%), BP (34%), National Gas Company of Trinidad and Tobago Limited (10%), Chinese Investment Corporation (10%)[1][2]
  • Location: Point Fortin, Trinidad and Tobago
  • Coordinates: 10.18106, -61.69189 (exact)
  • Type: Export[3]
  • Capacity: 3.3 mtpa[4]
  • Status: Mothballed[5][6][7]
  • Start Year: 1999[8]

Project Details, Train 2

  • Operator: Atlantic LNG[1]
  • Owner: Shell (57.5%), BP (42.5%)[2][1]
  • Location: Point Fortin, Trinidad and Tobago
  • Coordinates: 10.18106, -61.69189 (exact)
  • Type: Export[3]
  • Capacity: 3.4 mtpa[4]
  • Status: Operating[3]
  • Start Year: 2002[8]

Project Details, Train 3

  • Operator: Atlantic LNG[1]
  • Owner: Shell (57.5%), BP (42.5%)[2][1]
  • Location: Point Fortin, Trinidad and Tobago
  • Coordinates: 10.18106, -61.69189 (exact)
  • Type: Export[3]
  • Capacity: 3.4 mtpa[4]
  • Status: Operating[3]
  • Start Year: 2003[8]

Project Details, Train 4

  • Operator: Atlantic LNG[1]
  • Owner: Shell (51.1%), BP (37.8%), National Gas Company of Trinidad and Tobago Limited (11.1%)[2]
  • Location: Point Fortin, Trinidad and Tobago
  • Coordinates: 10.18106, -61.69189 (exact)
  • Type: Export[3]
  • Capacity: 5.2 mtpa[2][4]
  • Cost: 1.2 billion USD[9]
  • Status: Operating[3]
  • Start Year: 2007[8]

Project Details, Train 5

  • Owner:
  • Location: Point Fortin, Trinidad and Tobago
  • Coordinates: 10.18106, -61.69189 (exact)
  • Type: Export[10]
  • Capacity:
  • Status: Cancelled[10]
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Atlantic LNG Terminal is a four-train LNG export terminal in Trinidad and Tobago.[3]

The export-oriented LNG terminal was constructed in 1996 and became operational in 1999 with its first LNG cargo to Boston. Since then, the LNG terminal has expanded substantially and now contains four LNG trains. The second train and third train became operational in 2002 and 2003, respectively. The fourth train was completed in 2005 and was meant to strengthen Trinidad and Tobago's position as the largest exporter to the United States at the time. The entire terminal currently possesses a total production capacity of 15 mtpa.[11]

The terminal was constructed by Bechtel and cost an estimated $3.3 billion among all four trains.[12] Mechademy lists the costs for trains 1-3 as 2.2 billion USD[13] and train 4 as 1.2 billion USD.[9]

In 2007, a feasibility study was conducted for a fifth train, but there have been no developments since then and the proposal is presumed to be cancelled.[10]

Ownership Structure

The ownership and shareholder structure of the terminal is complex and has changed many times since the project began. The ownership varies across the LNG trains of the terminal. Until 2013, Repsol was a major stakeholder until it sold all of its LNG assets to Shell.[14]

As of January 2022, the government of Trinidad and Tobago was working with the shareholders of Atlantic LNG to restructure ownership to allow more efficient management of the project.[15]

As of June 2022, the main shareholders were Shell and BP (British Petroleum), with NGC Trinidad and Tobago and CIC (Chinese Investment Corporation) also holding minority shares in some of the terminals.[2]

Gas Production

While Trinidad and Tobago was the world's seventh largest exporter of LNG in the world and largest LNG exporter to the US in 2015, the country's production and market for gas has struggled recently.[16] Production has declined over the past few years due to lack of upstream investment and a lack of recent infrastructure development,[17] despite efforts by BP and BG to rejuvenate Trinidad and Tobago's gas industry with upstream investments and projects.[18] Additionally, the shale gas revolution in the United States has exacerbated Trinidad and Tobago's struggling gas industry.[19]

In 2016, Atlantic experienced a 30% gas supply shortage, and 2017 was predicted to be even worse, with up to a 35% gas shortage. The significant problem with this situation, besides the massive fall in LNG export cargoes, is that it creates a safety issue with the terminal. Turbines and compressors are turned on and off, or are put out of rhythm, which is not how they were designed to function, posing unknown issues and problems according to Atlantic's CEO, Nigel Darlow.[17]

Suspension of operations at Train 1

In December 2020, Train 1 of the Atlantic LNG Terminal (the oldest of the terminal's four operating trains) was mothballed due to insufficient gas supply.[5][6] Train 1 remained offline as of July 2022[6] and was not expected to resume operations until 2023 at the earliest.[7]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 13, 2022.
  2. 2.0 2.1 2.2 2.3 2.4 2.5 "Our Trains". Atlantic LNG. Retrieved 2022-06-01.
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 "Overview". Atlantic LNG. Retrieved 2022-06-01.
  4. 4.0 4.1 4.2 4.3 "GIIGNL 2021 Annual Report”, page 41, GIIGNL, accessed May 4, 2021.
  5. 5.0 5.1 "Trinidad's Atlantic LNG in make-or-break talks". Argus Media. September 8, 2021.
  6. 6.0 6.1 6.2 "Atlantic LNG's Train 1 Still Offline after 18 Months". Hart Energy. July 26, 2022.
  7. 7.0 7.1 "Trinidad natural gas plant to be mothballed for at least two years  - Stabroek News". Stabroek News. July 18, 2021.
  8. 8.0 8.1 8.2 8.3 "Atlantic History". Atlantic LNG. Retrieved 2022-06-01.
  9. 9.0 9.1 "Atlantic LNG Train 4 – Mechademy". www.mechademy.com. Retrieved 2022-07-25.
  10. 10.0 10.1 10.2 Atlantic LNG, Wikipedia, accessed April 13, 2021
  11. History, Atlantic, accessed March 2021
  12. Point Fortin Refinery / LNG Liquefaction Plant, Trinidad and Tobago, Hydrocarbons Technology, accessed March 2021
  13. "Atlantic LNG Trains 1-3 – Mechademy". www.mechademy.com. Retrieved 2022-07-25.
  14. Repsol sells LNG assets to Shell for $6.7 billion, Repsol, February 26, 2013
  15. "Trinidad Govt Signs Atlantic LNG Restructuring Deal With Shell And BP". Rigzone. January 27, 2022.
  16. Trinidad and Tobago, The Oil and Gas Year, accessed March 2021
  17. 17.0 17.1 Trinidad’s Atlantic LNG sees 2017 as “worst yet” due to gas shortages, LNG World News, November 10, 2016
  18. BP Resuscitating Trinidad & Tobago's Hydrocarbon Industry, Seeking Alpha, December 29, 2016
  19. Curtis Williams, "Trinidad and Tobago Signal BP, BG for Larger Stake in ALNG Train", Oil & Gas Journal, April 8, 2014

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External resources

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