Trinidad seals Atlantic LNG restructuring deal with Shell and BP

Trinidad and Tobago has finally signed a restructuring deal with the shareholders of LNG producer Atlantic LNG, Shell, BP, and the National Gas Company (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 and BP have the biggest stakes in Atlantic LNG trains, followed by NGC and Chinese Investment Corporation (CIC).

The government and partners in the facility have been in talks for about five years to find solutions to ensure the future supply to the facility and to simplify the shareholding structure.

According to statements by BP and NGC, Trinidad and Tobago Prime Minister, Keith Rowley, and Minister of Energy and Energy Industries, Stuart Young, met with representatives from BP, Shell, and NGC in London on December 5 to formally mark the completion of all contractual agreements for the restructuring of Atlantic LNG.

Shell also confirmed that negotiations concluded, and definitive agreements were signed between Atlantic LNG shareholders and the government of Trinidad and Tobago.

The shareholders and the government have agreed to a new ownership structure and to a new commercial framework for Atlantic LNG.

BP said that NGC will increase its equity share in Atlantic LNG, consistent with the commitment by the government to maximize value to the country from the sale of hydrocarbon resources.

The new structure will also facilitate a “market-reflective pricing mechanism that provides fair value from the sale of LNG for both the country and the shareholders.”

For investors, the deal will provide the certainty required for sanctioning the next wave of upstream gas projects, it said.

Shareholding structure

The companies did not provide the new shareholding structure.

LNG Prime understands that, from October 2024 until May 1, 2027, the restructured entity’s shareholders are Shell with a 47.15 percent share, BP with a 47.15 percent, and NGC with a 5.7 percent share.

CIC, which had about 10 percent in the first train, will no longer hold shares in the LNG producer.

From May 2, 2027, Shell will hold a 45 percent stake in Atlantic LNG, BP will have a 45 percent stake as well, while NGC will have a 10 percent share in the LNG producer.

Most Popular

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

US LNG exports climb to 34 cargoes

US liquefied natural gas (LNG) plants shipped 34 cargoes during the week ending April 16. According to the Energy Information Administration, pipeline deliveries to the LNG terminals increased compared to the prior week.

GTT secured orders for nine LNG carriers in Q1

French LNG containment giant GTT received orders for nine liquefied natural gas carriers in the first quarter, while its revenue rose 31.6 percent compared to the same period last year.

More News Like This

BP, partners ship first Tortue LNG cargo

UK-based energy giant BP and its partners have shipped the first liquefied natural gas (LNG) cargo produced at the Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal, according to shipping data.

Venture Global launches Calcasieu Pass LNG commercial ops

US LNG exporter Venture Global LNG has launched commercial operations at its Calcasieu Pass LNG terminal in Louisiana, some 68 months from its final investment decision and 38 months after production start.

YPF expects more supermajors to join Argentina LNG project, CEO says

Argentina’s state-owned oil and gas company YPF expects more supermajors to become equity partners in the planned Argentina LNG project following a deal with Shell, according to CEO Horacio Marin.

Shell expects Q1 LNG trading results to be in line compared to previous quarter

LNG giant Shell expects trading and optimization results for its integrated gas business in the first quarter of this year to be in line compared with the fourth quarter of last year.