Trinidad gas, oil output struggles as push to ease tax burden increases

Latest numbers from Trinidad and Tobago reveal that hydrocarbons production continues to fall to near historical lows, although recent project developments may help boost output.

Energy ministry data shows that natural gas output fell to a near recent record low in April of 66Mm3/d (million cubic meters a day) and crude and condensate production slid to a year low in May of 57,000b/d.

In its 2022 World LNG report, the International Gas Union highlighted the Caribbean nation’s falling LNG exports due to a shortage of domestic gas

[insight#259047313]

‘TIME IS RUNNING OUT’

“With the continued push for net-zero by 2050, the window for investment in gas and especially in crude oil production is narrowing every day,” according to a new post by The Energy Chamber of Trinidad and Tobago.

The industry association argues that “time is running out” and that changes to the oil and gas royalty regime, and modifications to the tax structure for oil would help spur upstream spend.

Other recommendations pitched by the chamber in the past to secure new gas supply and maximize exports include fast-tracking licensing rounds, reducing regulatory approval time, promoting innovative approaches to small field development, and diverting gas from power generation through energy efficiency and renewable energies.

Energy minister Stuart Young recently said the “government recognizes that to encourage further investment in the upstream that the fiscal regime needs to be updated… [and that] … an amended fiscal policy is being drafted for cabinet’s consideration.”

Read Will new Trinidad upstream calls break with lackluster deepwater results? and Trinidad opens onshore licensing round

[insight#259047546]

DEVELOPMENTS

Over the past few weeks and months, announcements have been made that are expected to support sector recovery:

Approval of Cascadura certificate of environmental clearance

Notice of pre-commissioning and commissioning of Coho facility and pipeline

DeNovo Delivers First Gas from Zandolie

Cassia C progressing towards first gas

Drilling commenced on six well onshore campaign in Trinidad and Tobago