VZCZCXRO2795
RR RUEHDE RUEHDH RUEHGR
DE RUEHSP #0302/01 2021935
ZNR UUUUU ZZH
R 211935Z JUL 09 ZDK
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 9948
INFO RUEHHH/OPEC COLLECTIVE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUCNCOM/EC CARICOM COLLECTIVE
RUEHSJ/AMEMBASSY SAN JOSE 0513

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000302 
 
SIPDIS 
 
STATE FOR EEB/IEC, WHA/EPSC, WHA/CAR 
ENERGY FOR POLICY/INTERNATIONAL Q GWARD, SBROWNE 
SAN JOSE FOR REGIONAL ENVIRONMENTAL HUB 
 
E.O. 12958: N/A 
TAGS: ENGR EPET EIND TD
SUBJECT: TRINIDAD GASBAG - ENERGY SECTOR NEWS (#3-09) 
 
In this edition, we report on the following developments in the 
Trinidad and Tobago (T&T) energy sector from June 25 Q July 17, 
¶2009. 
 
¶1.  GOTT signs two Production Sharing Contracts 
¶2.  Fewer energy investment dollars for TT 
¶3.  BG to purchase stake in TT gas field 
¶4.  TT to develop renewable energy framework 
¶5.  TT to revisit gas supplies to Jamaica 
¶6.  Partial Scope Agreement with U.S. on energy 
 
¶1.  GOTT signs two Production Sharing Contracts (PSCs) 
--------------------------------------------- --------- 
State-owned Petrotrin and its joint venture partners-- the 
Canadian-owned company Voyager Exploration (Trinidad) Ltd. and 
British-based Company Centrica Energy, recently signed production 
sharing contracts (PSCs) with the GOTT Ministry of Energy in an 
effort to locate new reserves of oil and gas.  In July, Voyager 
signed PSCs for the onshore and offshore Guayaguayare Shallow and 
Deep Horizons Blocks as well as an agreement to participate in the 
offshore Block 2(ab).  According to Energy Minister Conrad Enill, 
Voyager plans to invest approximately US$40.3 million into the 
project over the next four years.  Centrica, involved in upstream 
oil and gas production in addition to power generation, recently 
signed a contract authorizing the exploration of offshore Block 2 
(ab).  The company plans to spend approximately US$40 million on the 
project over the next three years. Centrica's project includes the 
acquisition of 3D seismic data and the drilling of three wells. 
Centrica will act as operator with a 65 percent stake to Petrotrin's 
35 percent. 
 
¶2.  Fewer Energy Investment Dollars for TT 
----------------------------------------- 
Energy Minister Conrad Enill announced at a recent PSC signing 
ceremony that a previous GOTT plan to invest US$185 million in 
energy sector investment over the next four years was withdrawn. 
Enill said that the reason for the withdrawal is that key three 
international companies could not follow through with their 
proposals as a result of the global economic crisis. 
 
¶3.  BG to purchase stake in TT gas field 
---------------------------------------- 
BG International and Canadian Superior Energy Inc. recently 
announced that under a preemption offer contained in an agreement 
between the two companies, BG will exercise its right to buy from 
Canadian Superior a 45 percent stake in the natural gas property off 
the coast of Trinidad known as Block 5(c) at a cost of US$142.5 
million.  This was the same price offered by British energy company 
Centrica Resources Ltd.  Calgary-based Challenger Energy 
Corporation, the third partner, has a 25 percent stake in this 
field. 
 
¶4.  GOTT to develop renewable energy framework 
--------------------------------------------- - 
GOTT Energy Minister Conrad Enill announced that the GOTT is placing 
more emphasis on developing renewable energy resources.  He said 
that the government is working on relevant legislation and that 
preparation of a draft green paper on renewable energy is in the 
works.  Enill said that the document will form the framework to 
guide the development and usage of renewable energy in T&T.  Enill 
reminded his audience that T&T no longer refines or markets leaded 
gasoline and the local refinery will soon be upgraded to produce 
cleaner fuels. 
 
¶5.  TT to revisit gas supplies to Jamaica 
----------------------------------------- 
On June 24, GOTT Prime Minister Patrick Manning delivered a 
statement to the TT House of Representatives on initiatives geared 
to assist the economies of several Caricom countries.  One of the 
Prime MinisterQs proposals is to resurrect the agreement signed with 
Jamaica in 2004 for the supply of LNG to Jamaica to stimulate its 
alumina industry.  According to Manning, the original agreement was 
made subject to availability and, following the accordQs signing, 
abandonment of a major exploration well meant gas was not available. 
 However, due to the economic downturn and the worldQs supply and 
demand situation for gas, Manning indicated that a supply of LNG to 
Jamaica is now available for the stimulation of investments in that 
countryQs alumina sector.  In exchange, the Prime Minister said he 
was confident that T&T can enter into a guaranteed arrangement with 
Jamaica for the supply of alumina for T&TQs proposed aluminum 
smelter. 
 
¶6. Partial Scope Agreement with U.S. on energy 
--------------------------------------------- - 
T&T Prime Minister Manning stated in the same June 24 statement to 
the TT House of Representatives that the GOTT had secured CaricomQs 
 
PORT OF SP 00000302  002 OF 002 
 
 
agreement to allow it to pursue a partial scope energy agreement 
with the U.S.  Manning said the idea behind this initiative was to 
ensure guaranteed market access for the output of the energy sector, 
including aluminum and polypropylene-based products. According to 
Manning, the availability of these raw materials from T&T would lead 
to the development of labor intensive industries in the Eastern 
Caribbean.  He added that the products would find a ready market in 
the US. 
 
KUSNITZ