News Americas, New York, NY, September 26, 2024: Shell has been named the preferred bidder for a highly sought-after shallow water block in Trinidad and Tobago, according to sources cited by Reuters. This decision comes as the Caribbean nation aims to reinvigorate its liquefied natural gas (LNG) and petrochemical sectors, which have been impacted by declining gas production.
Shell outperformed industry heavyweights bp and EOG Resources in the bidding process for the coveted Modified U(c) block, which was the most desirable of the 13 blocks offered during the country’s shallow water auction last year. Official estimates suggest these blocks hold a combined 13.4 trillion cubic feet of natural gas.
This win is of particular significance for Shell, as the company is a key stakeholder in Trinidad’s Atlantic LNG project, which produces 15.3 million tonnes of LNG per year. Shell, alongside bp, is keen to secure additional gas supplies to support the project’s liquefaction trains.
Negotiations between Shell and the Trinidad Government are still underway, with further details about the agreement expected soon. While neither Shell nor bp has commented publicly, the announcement marks a strategic victory for Shell, especially in light of its recent final investment decision on the Manatee gas field in Trinidad’s East Coast Marine Area.
The Manatee field, part of the Loran-Manatee discovery which straddles the maritime border between Trinidad and Venezuela, will enhance Shell’s gas production capacity. The development will include a pipeline connecting the offshore installation to Trinidad’s onshore gas processing facility.
EOG Resources and bp, who submitted bids for other blocks in the auction, have yet to provide responses regarding their bids.
