Vz unrest no threat to Trinidad gas projects: Minister
Increasing political instability in neighbouring Venezuela will not affect major offshore natural gas projects in Trinidad and Tobago, energy minister Stuart Young said.
The three gas projects being developed under agreements with Shell and BP "will be seen to their fruition," Young said.
Protests have erupted in Venezuela after electoral authorities named president Nicolas Maduro the winner of the 28 July election.
But several countries — including the US — declared the opposition's Edmundo Gonzalez as the winner.
Trinidad and Tobago will continue to develop the cross-border gas projects "as our economy is based on oil and gas, and we are committed to developing them and to earning the revenue streams from these projects," Young said.
But the projects "are inevitably being clouded by domestic developments in Venezuela," a Caribbean diplomat in the capital Port of Spain told Argus. "It is possible Washington will stiffen some sanctions it had moderated months ago to allow some of the gas projects to proceed."
Trinidad and Tobago and Venezuela last month signed a 20-year exploration and production agreement for the Cocuina gas field that is part of a field that straddles the countries' borders.
BP and Trinidad's state gas company NGC will develop the field.
Shell made a final investment decision on the shallow-water 2.7Tcf Manatee cross-border field, the company said last month.
Shell and NGC are developing the Dragon field that sits on the border with Venezuela and which the companies say contains an estimated 4.3Tcf of gas.
Trinidad needs gas to reverse a drop in production that has depressed LNG, petrochemical and fertilizer production.
The country's 2023 natural gas production of 2.6 Bcf/d was 3.7pc less than in 2022, according to energy ministry data.
Related news posts
Guyana arbitration scheduled for 2025: Chevron, Hess
Guyana arbitration scheduled for 2025: Chevron, Hess
New York, 1 August (Argus) — Chevron and Hess said an arbitration hearing over a disputed stake in a giant offshore oil find in Guyana has been scheduled for next year, effectively delaying their proposed $53bn merger. The future of the stake, which is the crown jewel of Chevron's takeover of the US independent Hess, has been thrown into uncertainty after ExxonMobil argued it has a right of first refusal to Hess' stake. The matter has been referred to international arbitration in Paris and a hearing has been scheduled for May next year, with a decision expected over the following three months. "Chevron and Hess had expected and requested that this hearing be held earlier, but the arbitrators' common schedules did not make this possible," the two companies said in a joint statement. The companies said they remain confident that the arbitration will confirm a right of first refusal does not apply to their merger. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Shell's 2Q profit beats expectations, but lower than 1Q
Shell's 2Q profit beats expectations, but lower than 1Q
London, 1 August (Argus) — Shell's second-quarter results came in ahead of analysts' expectations today despite poorer performances across its business when compared with the first three months of the year. Shell's of $3.52bn was less than half the $7.36bn it reported for the January-March period, reflecting lower production and refining margins and a poorer environment for trading LNG, crude and oil products. But profit was up by 12pc on the year. Adjusted for inventory valuation effects and one-off items, profit was $6.29bn, up by 24pc on a year earlier and slightly ahead of the consensus of analyst estimates for $6bn. Oil and gas production during the quarter was 3pc lower than in the first three months of the year, averaging 2.82mn b/d of oil equivalent (boe/d). This was greater than the 2.73mn boe/d it reported for second-quarter 2023. Shell's guidance for its production in the third quarter is 2.5mn-2.76mn boe/d, reflecting greater scheduled maintenance across its portfolio. LNG production within Shell's Integrated Gas business during the quarter was 6.95mn t, 8pc lower than the prior quarter and down on the 7.17mn t produced in second-quarter 2023. LNG sales fell by 3pc from the first quarter, to 16.41mn t. These declines, along with a lower contribution from the segment's trading operation and lower realised prices, helped drive the Integrated Gas business' profit down by 11pc between the first and second quarters to $2.45bn. This was much improved on the $757mn a year earlier. Shell's Upstream business performed solidly, with its segmental profit for April-June down by 4pc on the first quarter at $2.18bn and well ahead of the $1.6bn reported for the second quarter last year. Currency movements and a tax settlement in Brazil played their part in the quarter-to-quarter profit decline, as did the 3pc fall in oil and gas production. As flagged by Shell in its trading statement earlier this month its Chemicals and Products segment took a $637mn hit due to lower products margins during the quarter, contributing to a 49pc quarter-on-quarter decline in this business' profit to $587mn. This was mainly driven lower refining margins, partly caused by increased supply in the oil products market. The Chemicals and Products business took an impairment from $708mn of write-downs, mainly related to assets in Singapore that it agreed to sell in May. Shell's cash flow from operations in the second quarter improved on the first by 1pc to $13.5bn. The company maintained its dividend for the second quarter at 34.4¢/share, and said announced $3.5bn of share buybacks to follow a $3.5bn buyback programme it has completed since its first quarter results announcement. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Goi No.1 CCGT starts commercial operations
Japan’s Goi No.1 CCGT starts commercial operations
Osaka, 1 August (Argus) — Japanese joint venture Goi United Generation started commercial operations today of the 780MW No.1 combined-cycle gas turbine (CCGT) unit, with construction having begun in April 2021. The joint venture comprises Japan's largest power producer by capacity Jera, the power arm of refiner Eneos and regional utility Kyushu Electric Power with a shareholding ratio of 9:5:1 respectively. The new 1,650°C-class Goi CCGT unit can achieve around 64pc thermal efficiency on a lower calorific value basis, with the best available thermal technology helping cap carbon dioxide emissions. This is part of the development of the proposed 2,340MW Goi CCGT plant, which is to replace the 1,886MW conventional gas-fired power plant that was decommissioned in March 2018. The 780MW No.2 and No.3 CCGT units are scheduled to begin operations in November and March 2025 respectively. LNG use at Goi is expected to increase to 2.2mn t/yr from the previous 1.9mn t/yr following the plant's completion, according to the environmental impact assessment for the plant replacement. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Fed holds rate, signals possible September cut
US Fed holds rate, signals possible September cut
Houston, 31 July (Argus) — The US Federal Reserve kept its target interest rate unchanged at a 23-year high today while signaling a September rate cut "could be on the table" if inflation continues on its easing trajectory. The Fed's Federal Open Market Committee (FOMC) held the federal funds target rate unchanged at 5.25-5.5pc. The Fed has held rates unchanged since July 2023 after hiking them by 5.25 percentage points from March 2022 in the steepest course of hikes in four decades. "We're getting closer to the point at which it will be appropriate to begin to dial back restriction," Fed chairman Jerome Powell said after the meeting. "If we get the data that we hope we get, a reduction in the policy rate could be on the table at the September meeting." The decision to keep rates steady was widely expected. Following today's meeting, the FedWatch tool, which tracks fed funds futures trading, projected an 81.6pc probability of a quarter point cut at the September FOMC meeting and an 18.2pc chance of a half point cut, compared with 86.3pc chance of a quarter point cut and a 13.2pc probability of a half point cut a day earlier. The Fed has been battling to rein in inflation, which saw the consumer price index surge to a four-decade high of 9.1pc in June 2022 because of supply chain disruptions caused by the global economic reopening following the Covid-19 pandemic.The Fed's favorite inflation gauge, the Personal Consumption Expenditures (PCE) price index, fell to an annual 2.5pc in June, close to the Fed's long range target of 2pc. The unemployment rate has risen to 4.1pc in June from 3.5pc in July last year. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
![Generic Hero Banner](/_next/image?url=%2F-%2Fmedia%2Fproject%2Fargusmedia%2Fmainsite%2Fimages%2F14-generic-hero-banners%2Fherobanner_1600x530_generic-c.jpg%3Fh%3D530%26iar%3D0%26w%3D1600%26rev%3D8ec86dce0f724687bd325a9a917cffae%26hash%3D9FD39B08C9D84A160C91A3649C40A186&w=3840&q=75)
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more