10
The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De La Bastide, PLEA 6 June 2014 1

The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

  • Upload
    haduong

  • View
    215

  • Download
    0

Embed Size (px)

Citation preview

Page 1: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

The Economic Contribution of the Midstream & Downstream

Energy Sectors in Trinidad &Tobago

RRCT Conference

Richard De La Bastide, PLEA

6 June 2014

1

Page 2: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

The T&T Midstream and Downstream Landscape

• Trinidad and Tobago has track record of developing world class gas based industry (number one exporter of methanol, ammonia in world and global leader in LNG).

• The midstream and downstream sectors are major contributors to Government revenue through equity ownership and taxation.

• The sectors also add value to economy through employment in engineering, construction, operations and maintenance.

2

Page 3: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

3

Natural Gas Industry

• 3P Reserves 32.6 TCF

• Resource Potential 91.3 TCF

0 50 km

Venezuela

Trinidad

Tobago

Port of Spain

Venezuela

Columbus

Channel

Galeota

Point

Poui

Immortelle

Flamboyant

Cassia

SBM

Mahogany

Amherstia

Pt. Fortin

Pt. Lisas

30”

Beachfield

Abyssinia

Picton

San-Fernando

Dolphin

ALNG

Sparrow, Parang

and Renegade

Block 5A

BG/Texaco

Bombax gas pipeline

Kapok

NCMA gas pipeline

DAB

IrisOrchidPoinsettia

Chaconia

Hibiscus

Page 4: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

T&T Gas Market Structure

Upstream Gas

NGC Buyer/Seller

Petro-chemicals

Electricity

Other Manufacturing

LNG

Metals

Domestic Market

Export Market

NGC Transmission

57%

28%

8%

4%

43%

100%

4 Source: MEEA

3%

Page 5: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

The structure of the petrochemical value chain

5

Gas Processing

PPGPL

Ammonia

Methanol

Urea

Nitric Acid

Melamine

Ammonium Nitrate

UAN

Export

Export

Natural Gas

Potential

Existing

Formaldehyde & UF Resin

Acetic Acid

MTP & DME

Poly Propylene

Plastics Industry

Export

Export

Export

Page 6: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

11 Ammonia Plants 7 Methanol Plants 1 AUM complex, comprising

• 1 ammonia plant • 1 urea plan • 1 nitric acid plant • 1 ammonia nitrate plant • 1 UAN plant • 2 melamine plants

1 Urea Plant 1 NGL Facility 4 DRI Plants 6 Power Generation Plants 4 LNG Trains 1 Crude Oil Refinery • Contributed c. US$3 billion in GDP (2012) • Employs roughly 20,000 (inc. temporary jobs)

Midstream and Downstream Plants

6 Source: MEEA, CSO & Ministry of Finance

Page 7: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

Contribution to GDP

7

0

10,000

20,000

30,000

40,000

50,000

60,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

TT

$ M

illio

ns

Petroleum Sector GDP 2002-2012

Exploration andProductionRefining (incl Atlantic LNG

Petrochemicals

Service Contractors

Source: Ministry of Finance

Page 8: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

Midstream and Downstream Contribution to employment

0

500

1000

1500

2000

2500

3000

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14

No

of

PLE

A A

sse

ssm

en

ts

PLEA Safety Passport Assessments from 2013-2014

Failures

Passes

8 Source: Energy Chamber

Page 9: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

Major issues facing the midstream and downstream energy sector

1. Gas supply fluctuation

2. Future review of upstream/downstream gas contracts

3. Competition for new and existing markets in light of shale gas development

4. Access to skilled personnel

9

Page 10: The Economic Contribution of the Midstream & Downstream ... · The Economic Contribution of the Midstream & Downstream Energy Sectors in Trinidad &Tobago RRCT Conference Richard De

10

QUESTIONS & COMMENTS