Trinidad and Tobago’s energy minister on new frontiers

Trinidad and Tobago

Minister of Energy and Energy Industries of Trinidad and Tobago the Hon. Stuart R. Young, S.C., talks to The Energy Year about how the Ministry of Energy and Energy Industries (MEEI) is revitalising the country’s upstream and furthering regional energy integration, as well as its efforts to accelerate renewable energy developments and decarbonisation projects.

This interview is featured in The Energy Year Trinidad & Tobago 2024

How is the MEEI supporting the revitalisation of Trinidad and Tobago’s upstream and furthering regional energy integration?
One major, recent milestone was the securing of a 30-year exploration, production and exportation licence for the Dragon gasfield. This was made possible by an OFAC [US Office of Foreign Assets Control] licence which was amended in October 2023, allowing Trinidad and Tobago (T&T) to make payments in US currency. We in T&T now have a fully operational agreement with the Government of the Bolivarian Republic of Venezuela.
Shell and the National Gas Company of Trinidad and Tobago Limited (NGC) are working together to develop and bring Dragon gas to market. Pre-engineering work has already started and soon the company chosen to conduct surveys will be announced.
With recent and upcoming elections in Venezuela, the US and the region, we’re focused on advancing these projects from concepts and conversations to concrete agreements. I’m pleased with our progress and expect significant announcements in the coming months.
We obtained another OFAC licence for the Coquina-Manakin field with BP, which is valid for two years. This field spans the Trinidadian-Venezuelan border and holds about 1 tcf [28.3 bcm] of gas. We have just finalised negotiations with the Venezuelan government, which granted the licence to NGC and BP for developing the field’s gas resources. This achievement is unprecedented, having never been seen in Trinidad and Tobago and Venezuela before for a cross-border hydrocarbons field.
Additionally, Shell has announced its final investment decision (FID) on the Manatee field, which holds about 2.7 tcf [76.5 bcm] of gas. This represents the largest hydrocarbons development in Trinidad for the last couple of decades.
We’re also negotiating with Woodside on the Calypso deepwater project and pursuing other significant deals, including one in Venezuela with European companies.
Additionally, we’ve had successful bid rounds, including one for deepwater with Shell and BP bidding, the onshore and nearshore bid round with 13 blocks, and the shallow-water bid round with BP, Shell and EOG all bidding and landing significant E&P agreements. These developments show ongoing investment in Trinidad and Tobago’s energy industry, with both major and smaller players contributing to the growth.
All these developments signify a strong position for Trinidad and Tobago, with both major shareholders in Atlantic LNG – Shell and BP – securing cross-border gas deals.

What benefits can be seen in the restructuring of Atlantic LNG’s ownership?
In December 2023, we successfully completed the renegotiation and restructuring of Atlantic LNG with BP and Shell. This is the first time worldwide that an LNG complex has been restructured with a government and shareholders involved, which is a major accomplishment.
This restructuring opens new opportunities for further upstream development in Trinidad and Tobago and the wider region. We’ve already signed MoUs with Grenada, Barbados, Suriname and Guyana. The restructuring also allows third-party access to Atlantic LNG’s facilities, enabling external gas to be processed there. This development encourages regional investment and provides a pathway for monetising gas resources through LNG.

How has the MEEI managed to accelerate growth in renewables and promote sustainability across the country’s domestic energy value chain?
On the renewables front, the Cabinet has approved two green hydrogen projects and the government is leading a pilot project with NGC subsidiary National Energy, leveraging our existing infrastructure and expertise. We’re also negotiating a commercial project with HDF Energy from France and local company NewGen to launch the country’s first hydrogen production facility. We are working towards the materialisation of these major projects. While green hydrogen is still emerging, we’re working to make it commercially viable.
Additionally, the Cabinet has approved a significant expansion in solar energy. Project Lara is already under construction in Brechin Castle, with 92 MW of solar power being built. Later this year, we’ll issue RFPs [requests for proposals] for major solar sites across Trinidad, including on previously illegally quarried land, which will be restored and used for solar installations.
The EU, typically cautious about new oil and gas projects, is interested in our decarbonisation initiatives. For instance, we’re working with Repsol and Eni on a project that focuses on reducing methane emissions, which has garnered EU support.
Oil and gas remain crucial, but we’re committed to improving our environmental impact. By the end of the year, we expect to release our CCUS policy. We’re studying ways to enhance carbon capture and re-injection at our long-exploited wells. Trinidad and Tobago’s concentration of plants allows us to collaborate on capturing and storing carbon efficiently, and the European Commission has been supportive of these efforts. Despite our size, we’re making significant strides in these areas.

What kind of business environment do you foresee in Trinidad and Tobago from 2026 onwards as new gas volumes come on line?
The period from 2026-2030 will be crucial for us as a nation. If all the aforementioned projects come to fruition, and I’m sure they will, Trinidad and Tobago will have a reliable gas supply, filling our plant capacities and meeting demand.
We continue to be in discussions with Venezuelan authorities on the Loran field, which holds 7 tcf [198.3 bcm] of gas. President Maduro’s vision aligns with our vision for Loran’s gas to come to Trinidad. With deepwater projects and others progressing, Trinidad and Tobago will restore its gas volumes and capacity, ensuring continued investment in LNG, ammonia, methanol, urea and UAN [urea ammonium nitrate].
Investors are seeing a positive outlook here, unlike elsewhere. Even our downstream partners – such as Nutrien, Methanex, Proman and other petrochemicals companies – recognise the unprecedented progress and potential here. They’re committed to staying with us through years of lower gas production, knowing that production will ramp up from 2026.
Shell’s recent FID on Manatee, a multi-billion-dollar gas project, reflects their confidence in Trinidad’s future. The company’s inclusion of Trinidad and Tobago in their growth plans highlights this. Despite declining production, higher prices have kept our economy stable. The pricing formula we negotiated has been effective and will continue to benefit us moving forward.

What is your final message to investors considering Trinidad and Tobago today?
Trinidad and Tobago offers significant advantages for any investor in both hydrocarbons and the emerging renewables sector. As the largest market outside Jamaica for renewables, we address key concerns such as project bankability and feasibility. Our sophisticated infrastructure, trained workforce, planned capacities and supportive government make us an ideal investment destination.

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