Shell takes FID on Manatee gas project to supply Trinidad’s Atlantic LNG

A unit of UK-based LNG giant Shell has taken the final investment decision for the development of the Manatee gas field to supply Trinidad and Tobago’s Atlantic LNG export plant.

Shell said in a statement that the undeveloped gas field is located in the East Coast Marine Area (ECMA) in Trinidad and Tobago.

Manatee will allow Shell to competitively grow its integrated gas business by building on development efforts in the ECMA, one of the country’s most prolific gas-producing areas, it said.

The ECMA is currently home to Shell’s largest gas-producing fields in the country including Dolphin, Starfish, Bounty, and Endeavour.

Backfill for Atlantic LNG

Shell said the Manatee gas field will provide backfill for the country’s Atlantic LNG facility, adding that increasing utilization at existing LNG plants is an “important lever” to maximize potential from Shell’s existing assets.

In December 2023, Trinidad and Tobago has finally signed a restructuring deal with the shareholders of LNG producer Atlantic LNG, Shell, BP, and NGC.

The Point Fortin facility features four trains with a total capacity of about 15 million tonnes per annum of LNG but the facility has been experiencing supply issues due to dwindling domestic gas reserves.

Atlantic LNG’s first train has been idled since 2020 due to reduced gas supplies.

Shell is the operator of Manatee with a 100 percent working interest under the sub-Block 6D production sharing contract.

The project will involve a normally unattended installation platform located in the ECMA acreage with eight development wells via a 110 km pipeline to the Shell-operated onshore Beachfield gas processing facility, for onward export to the Atlantic LNG facility, and to the National Gas Company of Trinidad and Tobago for the domestic gas market.

Shell said Manatee is slated to start production in 2027.

Once online, Manatee is expected to reach peak production of about 104,000 barrels of oil equivalent per day (boe/d) or 604 MMscf/d, according to Shell.

Shell’s LNG business continues to grow

“This project will help meet the increasing demand for natural gas globally while also addressing the energy needs of our customers domestically in Trinidad and Tobago,” said Zoë Yujnovich, Shell’s integrated gas and upstream director.

“The investment bolsters our world-leading LNG portfolio in line with our commitment to invest in competitive projects that deliver more value with less emissions,” she added.

Shell said it plans to grow its LNG business by 20-30 percent by 2030, compared with 2022, and liquefaction volumes are planned to grow by 25-30 percent, relative to 2022.

The company sold 67.09 million tonnes of LNG during 2023, a rise of 2 percent compared to 65.98 million tonnes in 2022.

During the January-December period, liquefaction volumes dropped 5 percent to 28.29 million tonnes.

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