Trinidad and Tobago Sees LNG Revenue Surge After Contract Overhaul

Trinidad and Tobago is experiencing a boost in government revenue from liquefied natural gas (LNG) exports, with cargoes being sold at premiums of 15 to 55 percent above Henry Hub prices, as reported by Energy Minister Stuart Young. This increase follows a significant contract revamp for the Atlantic LNG project, finalized in late 2023 after five years of negotiations aimed at enhancing revenue and reviving export volumes. Previously, producers struggled to achieve competitive pricing for LNG sold to Europe, Asia, and South America. The government is urging offshore producers to expedite gas output from new projects to bolster supply. Additionally, Trinidad is working to offset declines in petrochemical sales due to European carbon taxes by leveraging its LNG export revenues. Key upcoming gas projects, such as Shell's Manatee and BP's Cypre, are expected to contribute significantly to production by 2028.