ENERGY Minister Franklin Khan said yesterday that the Government expects to earn US$944.7 million (TT$6.2 billion) in additional revenues between 2018 and 2027 from Shell as a result of the new formula that would be used for all four Atlantic LNG Trains at Point Fortin.
The new formula came after “months of complex and challenging negotiations,” Khan told Parliament in a statement, in which he reported on an energy trip made to Holland, England and Texas late last month.
For the new gas fields–the Barracuda Project (on the East Coast) and the Colibri project (on the North Coast)–it is estimated that the value of approximately US$3.3 billion will accrue to the Government over the period 2020 and 2029, Khan stated.
He said the Government and Shell agreed that gas supplied from the PSCs (Production Sharing Contracts) and any newly sanctioned PSCs for the production of LNG will be based on the new Train 1 FOB formula. Shell has embarked on the development of the Colibri project, for which first gas is projected for 2021 and the Barracuda Project, for which first gas is projected for 2020.