Trinidad gas supply not seen improving until 2017-18

Natural gas supply in Trinidad and Tobago is not expected to materially improve until various upstream projects come into active production around 2017-18.

The outlook comes from Caribbean Information and Credit Rating Services (CariCRIS), which lowered its ratings for Phoenix Park Gas Processors (PPGPL) to CariAA+ on the regional scale and ttAA+ on the national scale.

"This rating action was driven by an increased industry risk profile that has adversely impacted all industry players, including PPGPL, and has led to a declining trend in revenue and profitability for PPGPL over the past three years," said CariCRIS.

The ratings agency highlighted the decline of oil and gas prices which have impacted NGL prices.

"Further, the mid and downstream energy sectors, including gas-processing and petrochemical production, continue to be adversely affected by persistent gas supply shortages emanating from the upstream sector, caused by under-investment in exploration and production (E&P) over the past 10 years," it said.

CariCRIS also points to competition from new US operators in the Caribbean and Central American LPG market.

According to latest energy ministry statistics, the bulk of gas used in August went to LNG (54.3%), followed by ammonia production (15.8%), methanol production (14.9%) and power generation (8.42%).

Crude oil and condensate production this year in Trinidad and Tobago fell to a monthly low in August.