VZCZCXRO5360
PP RUEHDE RUEHGR
DE RUEHSP #0203/01 0441746
ZNR UUUUU ZZH
P 131746Z FEB 06
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC PRIORITY 6426
INFO RUEHHH/OPEC COLLECTIVE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000203 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EPET EINV TD
SUBJECT: ATLANTIC LNG LAUNCHES PRODUCTION TRAIN 4 
 
REF: 05 POS 2089 
 
¶1. SUMMARY:  Atlantic LNG Train 4 has been officially 
launched.  The train, a production facility with a 
capacity of 5.2 million tons (MT)/year, is the largest 
in the world.  It will increase by 50 percent overall 
T&T production of LNG to 15 million MT, all of which 
presently is destined for U.S. ports.  PM Manning 
talked about plans for future energy production, as 
well as calling for more gas to be diverted for 
domestic industrial production.  End Summary. 
 
¶2. In a February 3 event attended by Prime Minister 
Patrick Manning and many of his government ministers, 
Atlantic LNG executives celebrated the completion of 
production Train 4 (reftel).  In addition to speakers 
from Atlantic LNG, BG T&T President Craig McKenzie and 
Bechtel Chairman Riley Bechtel also gave remarks. 
Ambassador and Econ Chief attended event. 
 
------------------------------------------ 
Prime Minister Manning's plans for future 
------------------------------------------- 
 
¶3. In his remarks at the ceremony, Manning reminded his 
audience that, while oil production in T&T is now about 
150,000 barrels a day, the oil equivalent production of 
gas with the addition of Train 4 will soon be 650,000 
barrels per day.  Manning spoke openly about plans for 
additional production trains, using "Train X" to refer 
to the fifth one.  Such usage is GOTT code for the 
possibility that it may take a more direct role in it 
than the government has had in Atlantic LNG.  Manning 
also reiterated that one of the next two trains would 
process Venezuelan gas. 
 
¶4. As he has done on other occasions, Manning reminded 
the audience about the industrial development projects 
the GOTT is seeking for Trinidad that will provide a 
domestic use of gas as a feedstock or for power.  Among 
them are two aluminum smelters (one wholly Alcoa-owned, 
the other a GOTT joint-venture with Sural), plants for 
production of melamine, urea ammonium nitrate (UAN), 
propylene, and steel.  He also mentioned a new "syngas" 
refinery and upgrade work on the existing Petrotrin 
refinery.  He gave his assurance that sufficient gas 
existed to supply all of those plants.  He said 
investment decisions would be coming in 2006 on the 
plants, valued at US$7.3 billion overall.  To realize 
these projects, Manning foresaw construction demands of 
19,000 jobs, with more than 3,000 permanent jobs at the 
end.  Noting that T&T was close to full employment, 
Manning welcomed the launch of the CARICOM Single 
Market only days earlier.  T&T would have to rely on 
labor from neighboring countries, he added, as the pace 
of development in T&T accelerated. 
 
¶5. Manning touched on a new condition for future oil 
and gas production in T&T.  While the government had 
approved earlier projects that largely involved exports 
of raw materials or feedstock chemicals, Manning 
indicated that new approvals would be conditioned on 
company commitments to share an increasing proportion 
of their production with the National Gas Company for 
domestic downstream activities. 
 
--------------------------------------- 
Atlantic LNG and Bechtel accomplishments 
---------------------------------------- 
 
¶6. Atlantic LNG officials hailed the completion of 
Train 4, noting that there had been no/no lost time 
accidents among the 5,000 workers with twenty 
subcontractors under Bechtel management.  Company 
president Rick Cape said this amounted to more than 14 
million work hours over 42 months, adding that the 
project was completed on time and within budget. 
[NOTE: These two facts are more remarkable when 
recalling that the project was stalled by a strike for 
ten weeks in 2004.]  As a consequence, Cape said 
workers on the project were going to receive bonuses 
totaling US$2 million. 
 
¶7. Also appearing on the program was Bechtel Chairman 
and CEO Riley Bechtel.  He spoke briefly to 
congratulate all who were involved in the project. 
Bechtel highlighted the fact that 50 percent of piping 
and 30 percent of structural steel were fabricated in 
T&T.  He added that 100 percent of craftsmen on the 
project were Trinidad nationals. 
 
 
PORT OF SP 00000203  002 OF 002 
 
 
¶8. In the corridor preceding the ceremony, Econ Chief 
asked Bechtel what the company's plans were now that 
this project was finished.  Bechtel responded without 
hesitation that the company would be the project 
manager for the Alcoa smelter.  He said Bechtel does 
more projects worldwide for smelters than any other 
company, including doing all of Alcoa's projects. 
 
¶9. COMMENT: Regardless of whether Atlantic LNG becomes 
the site and/or model for "Train X" or any other future 
production train, the completion of Train 4 puts T&T 
into the spotlight as having the largest such train in 
the world.  Overall output from Atlantic LNG will rise 
by 50 percent this year to about 15 million MT per year 
of LNG, all of which is currently destined (for pricing 
and other reasons) to ports in the U.S.  This 
guarantees a close bilateral supply relationship for 
the next two decades, which could be prolonged, 
depending on discoveries and related GOTT decisions. 
Meanwhile, a T&T/Venezuelan agreement to process 
Venezuelan gas here appears less imminent than it did 
last year due to disagreement between T&T and Venezuela 
over the latter's Petrocaribe oil scheme.  Discussions 
on sharing found gas along the maritime boundary 
continue, but a final agreement on processing that gas 
likely will hinge more on political than economic 
considerations. 
 
AUSTIN