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.

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