(Trinidad Express) Former energy minister Kevin Ramnarine says while the signing of the exploration and production licence is a step up the ladder to Dragon gas coming to Trinidad and Tobago, the Government needs to give a definitive estimate for first gas.
“It’s good if the gas arrives, but we need to know when that is and I look forward to a full account of the value that will come to T&T, especially since the value chain is split between two countries,” said Ramnarine in a telephone interview with the Express yesterday.
This amounts to importation of natural gas and that means taxes and royalties will be paid to Venezuela, he noted.
“The benefit for us would be that industrial plants and LNG trains opera¬ting here will get some natural gas at a time when there is a shortage and some have opted for closure. There is also a need for us to better understand what the role of the (National Gas Company) is and to what the NGC board has bound the company,” said Ramnarine.
He said there was a lot ahead for the licensees, Shell and the NGC, to do.
“For example, what is the status of the wells that were drilled in the Dragon field in the past. Will there be a need for a new drilling campaign? If yes, where will it be staged from? Then, new infrastructure has to be installed, including a pipeline to the Shell Hibiscus platform,” he said.
“There will need to be bathymetric surveys, environmental clearan¬ces, etc. All these things take years to happen.
“In terms of a next step, the ball is really in Shell’s court to move the project to final investment decision (FID). When that will happen is anyone’s guess.
“With regard to the price Shell/NGC will pay Venezuela for the gas? I assume that was agreed to and is subject to a confidentiality clause. The question is what the price of the gas would be when landed in Trinidad,” he added.
What about border dispute?
Ramnarine said there was also the issue of Venezuela’s claim to the Essequibo region of Guyana.
“In my opinion, that issue has not gone away,” he said.
Ramnarine said there was only an agreement by Guyana and Venezuela not to use force over the border dispute.
“What if tensions between Venezuela and Guyana flare back up again? Does this deal prevent us from being able to fully support Guyana in the future? I am merely posing the question, but I think it warrants an answer,” he said.
Ramnarine said there was also the probability that the political landscape in Venezuela and in the United States could change in 2024, given the general elections scheduled in both countries.
“How would such a change affect the Dragon project? Therefore, there remain many questions and many moving parts related to Dragon,” he said.
