ECNETNews, September 26, 2024: In a significant development, Shell has emerged as the preferred bidder for a highly coveted shallow water block in Trinidad and Tobago. This strategic move aligns with the Caribbean nation’s efforts to revitalize its liquefied natural gas (LNG) and petrochemical industries, which have been facing challenges due to a decline in gas production.
Shell triumphed over industry giants in the bidding competition for the Modified U(c) block, which stood out as the most sought-after among the 13 blocks available during the recent shallow water auction. Preliminary estimates indicate that these blocks collectively hold approximately 13.4 trillion cubic feet of natural gas.
This latest accomplishment is particularly crucial for Shell, given its integral role in Trinidad’s Atlantic LNG project, responsible for producing 15.3 million tonnes of LNG annually. Shell aims to secure further gas supplies to bolster the project’s liquefaction operations.
Ongoing negotiations between Shell and the Trinidad Government are expected to yield further details about the agreement soon. While both parties have not commented publicly, this announcement signifies a strategic win for Shell, especially following its recent final investment decision regarding the Manatee gas field located in Trinidad’s East Coast Marine Area.
The Manatee field, part of the Loran-Manatee discovery straddling the maritime boundary between Trinidad and Venezuela, is set to significantly boost Shell’s gas production capabilities. The development plan includes a pipeline linking the offshore installation to Trinidad’s onshore gas processing facility.
Other bidders, including EOG Resources and bp, have submitted proposals for different blocks in the auction and have yet to respond regarding the outcomes of their bids.
