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http://toolkit.ngc.co.tt/energy-sector/

Energy Sector

Overview

T&T has a mature energy sector and is a net exporter of crude oil and petroleum products. Crude oil is either exported or processed at the country’s refinery. Average production of crude oil in 2015 was 71,487 bpd. The present refining capacity is 160,000 b/d.

Gas-based activities span the entire gas value chain. Natural gas is exported as LNG and is used locally in the manufacture of petrochemicals mainly for export, in power generation, in heavy and light industry and compressed for use as motor vehicle fuel.

Historically crude oil production and refining were the dominant energy activities. Crude oil was discovered in 1857 and commercial production began in 1908. The first significant use of natural gas was for power generation at the Penal Power Plant in 1953 and as a chemical feedstock in the manufacture of ammonia by Federation Chemicals Ltd in 1959.

Over the last four decades, natural gas production and gas-based industrial activities have dominated the national energy landscape.

Overview of Energy Industry – 2016
Crude Oil and Condensate Production (bpd) 71,487
Oil Refining Output (capacity, bpd) 160,000 bpd
Natural Gas Production (bcf/d, 2016) 3.327
LNG Production (capacity, mm tonne) 15
NGL Production (2016, bpd) 25,174.5
3P Gas Reserves (end 2015, tcf) 14.99
3P Oil Reserves (million barrels) 570

Natural Gas

Global Natural Gas Player Despite… Points to Note Energy Sector Contribution
  • Ammonia: #1 exporter in 2016
  • 4.66 million tonnes
  • Methanol: #2 exporter in 2016
  • 4.63 million metric tonnes
  • LNG: #1 exporter to US (95%)
  • Small natural gas reserves
  • 0.17% world reserves
  • 10.6 Tcf (1P at end of 2015)
  • R/P Ratio: 8.2 years
  • Produced 1,500 mmbtu/d (2016)
  • Location advantage
  • 100+ years commercial hydrocarbon production
  • Availability of developed infrastructure i.e Power, industrial estates, pipeline infrastructure
  • Sector accounts for 34.6% GDP
  • 19.3% total revenue
  • 78% total exports
  • 3.3% total employment

 

Natural Gas Based Production – 2016
Methanol Production 4.655 MM tonnes
Ammonia Production 4.9 MM tonnes
Urea 0.6 MM tonnes
UAN 1.236 MM tonnes
Melamine 620 K tonnes

Reserves

The latest audit of the country’s natural gas reserves by Ryder Scott Company, Petroleum Consultants, was conducted in 2015. The audit estimated the country’s proven reserves of natural gas at 10.60 trillion cubic feet (Tcf) at the end of 2015. Probable reserves were estimated at 3.24 Tcf, and possible reserves at 1.15 Tcf. The unrisked exploratory resources were 7.76 Tcf.

Usage

As of 2016 T&T ranked as the leading exporter of Ammonia and the second largest exporter of Methanol from a single site. The country is the largest exporter Liquefied Natural Gas (LNG) exporter to the United States.  The slate of heavy industries includes world-scale ammonia and methanol plants, and a gas processing facility.  Steps are being taken to diversify the sector mainly through the establishment of secondary processing industries downstream of ammonia and methanol and new gas-based industries producing an array of new products.

Figure 1: T&T Gas Value Chain

2017-04-10_gas-value-chain

Figure 2: Growth in T&T Natural Gas Utilization

2017-04-10_graph_01

Box 2 – Key Natural Gas Statistics

Item Value
Proven reserves (end 2015) 10.60 Tcf
Possible reserves (end 2015) 1.15 Tcf
Probable reserves (end 2015) 3.24 Tcf
Exp Production (end 2015) 7.76 Tcf


Industry Organization

At the apex of the industry structure is the Ministry of Energy and Energy Affairs (MEEA) which is responsible for administration and public policy formulation.

The industry value chain comprises three components— upstream, midstream and downstream.

The upstream comprises those activities involved in the exploration for and production of crude oil and natural gas. The midstream comprises those activities involved in the transportation, distribution and processing of natural gas. The downstream comprises the activities involved in the production of Liquefied Natural Gas (LNG); the manufacture of metals and gas-based petrochemicals; and   the generation of electricity. Within these components, the industry exhibits a mixed market structure with foreign and local companies involved in activities at all stages.

In addition, two state-owned companies play significant roles in the industry. These are the National Gas Company (NGC) and its primary subsidiary National Energy.

Major Players in the T&T Energy Sector

major-players-in-tt-energy-sector

 

T&T Oil and Gas Fields

tt-oil-and-gas-fields