Business/economics

A Deepwater Gasfield-Development Strategy for Trinidad and Tobago

Applying an economic analysis for Trinidad and Tobago's deepwater gas fiscal regime, results were calculated for various price scenarios to identify a workable strategy for development of offshore resources.

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Trinidad and Tobago is the top natural-gas producer in the Caribbean, with average daily production in 2014 of 4.069 Bscf/D. With vibrant upstream, midstream, and downstream sectors, Trinidad and Tobago makes maximum use of the natural-gas value chain. Further maximization through growth in the downstream sector requires an adequate supply of natural gas in addition to the shallow-water gas fields offshore, which are currently the main supply. Because of the thriving gas sector, a large amount of infrastructure already exists that may aid with any further development.

Introduction

The Trinidad and Tobago Gas Development Model has shaped the growth of its natural-gas economy over the years, and, in 2014, the energy sector accounted for 45% of the country’s gross domestic product. Average production over the past 5 years was an estimated 4.2 Bcf/D, while average use for the same ­period was 3.9 Bcf/D, with liquefied natural gas (LNG) accounting for more than 50% of this consumption (Fig.

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