Prieto

Trinidad's Atlantic LNG Company, which operates four natural gas processing trains, says a review has eliminated the possibility of structural faults on the largest line, clearing the way for it to begin producing at capacity.

Atlantic LNG's newest processing train, No. 4, has not been functioning at full capacity because of a combination of early start-up problems and the unavailability of gas for processing.

"We expect to have it on full commercial operations early next year," said newly-appointed Chief Executive Officer Oscar Prieto of Train 4, the largest processing train in the world.

"It's coming as much as gas is available," said Prieto, an Argentinian who previously headed BG Egypt.

Train 4 which was put into operation a year ago, has contributed US$700 million of the US$4 billion of LNG exports from Trinidad and Tobago so far in 2006.

"So it is not that it hasn't been in operation, it has not been in commercial operation fully loaded," said Prieto.

Operating at full capacity

"It was operating at a fairly low capacity, very seldom we were able to operate at full capacity, but the train has proven to be able to operate at full capacity."

Two weeks ago, the new Atlantic LNG boss met with shareholders - the company is owned by subsidiaries of BP plc, BG Group, Repsol YPF, Suez LNG, and the National Gas Company of Trinidad and Tobago - to review Train 4. That review concluded that the problem was not structural, he said.

"As soon as we have all the gas together we will be able to operate at full rate. Nothing (is) structurally wrong with the train, nothing that should worry us in the long term," said the gas company's CEO.

"The situation is going to be absolutely normal when we go into commercial operations."

Running at full capacity, the four trains combined can produce about 15 million metric tonnes per annum (mmtpa).

Train 4, built at a cost of US$1.2 billion, has a production capacity of 5.2 mmtpa.

Atlantic LNG is the largest contributor to the country's exports which totalled US$3.7 billion in 2006, and pays about US$50 million a year to the government in taxes.

Atlantic LNG also represents 57 per cent of the contribution of the refining sector to the economy.

BP Trinidad and Tobago (BPTT) has denied that Atlantic LNG's newest Train 4 was facing a gas shortage.

Ramping up

"They're ramping up and gas is being supplied to them," said Norman Christie, BPTT's vice-president market. "There's been no shortage from BP's processing entity."

BPTT, the largest shareholder of Train 4 with a 37.78 per cent stake, also supplies the largest volumes of LNG to Train 4.

Other suppliers include BG Trinidad which has a 28.80 per cent shareholding in Train 4, and Repsol which controls 22.22 per cent.

State-owned NGC owns the remaining 11.11 per cent of the processing train.

An official within Trinidad's Ministry of Energy also denied a shortage of gas, saying the delay was more linked to start-up problems with the line.

"As far as we know, all the suppliers are able to supply their portion of gas but the delay is centred around the start-up problem which is common with new trains," said the energy official who spoke on condition of not being named.

"There's nothing unusual with this."

Linda Jafar-Hutchinson