Linda Hutchinson-Jafar, Business Writer

Point-a-Pierre harbour in the foreground, and Point Lisas industrial estate in the background, as seen on the website gstt.org. - contributed

Technip USA, a unit of French oil services group Technip, has been awarded a contract by Trinidad and Tobago's state-owned National Gas Company (NGC) to build two new offshore pipelines, one of which will terminate in Tobago.

Technip will provide engineering and design services and construction management for the pipelines which are expected to be completed by the end of 2009.

The North Eastern Offshore (NEO) Pipeline will originate from BHP Billiton's facility in Block 2(c) off the north-east coast of Trinidad and connect into NGC's existing pipeline network to the south.

The line will provide transportation for new gas supplies from BHP Billiton and EOG Resources Trinidad Limited and will be sized for additional capacity from other suppliers of gas operating off the north-east coast.

Presently there is no gas pipeline infrastructure in this area.

The second pipeline is proposed to run to Cove Estate on the smaller island of Tobago. It will also originate from the BHP Billiton facility and constructed in a northerly direction, terminating at Cove Estate on Tobago's south coast.

NGC said tha preliminary sizes have been discussed, the projects are currently in their design and planning phases and as such the actual lengths and diameters of the pipelines are still to be determined.

A diameter of 30-36 inches and and length of approximately 50 miles is under consideration for NEO.

The Pipeline to Cove Estate, Tobago is expected to be approximately 33 miles in length with a diameter of 10 inches.

Gas distribution system

Directional drilling technology will be used on the approach to the Tobago coast because it allows for installation under all near-shore and shore structures, avoiding environmental damage to reefs, rock formations and beach landing.

Orville London, chief secretary of the Tobago House of Assembly disclosed that Technip's contract to built the pipeline was costing US$72 million.

The gas will provide fuel for the state-owned Trinidad and Tobago Electricity Commission's (T&TEC) Power Generation Plant being built at Cove Estate, in addition to supplying gas to all light industry on the estate via a gas distribution system.

T&TEC is building a 50-60 megawatt generating plant at a cost of US$76 million.

It is anticipated that this new pipeline will provide transportation capacity for third parties such as the Eastern Caribbean Gas Pipeline Company for the supply of gas to Barbados via Tobago. However, NGC will only be responsible for the transportation of gas to Tobago.

Earlier this year, NGC signed an agreement with BHP Billiton Trinidad and Tobago (BHP) Consortium for the supply of an average of 220 million standard cubic feet per day (MMscf/d) of gas for approximately 11 years.

The gas will be supplied from Offshore Block 2(c), where the joint venture comprising BHP Billiton/Talisman/TotalFinaElf discovered the Greater Angostura oil and natural gas field in 1999.

BHP Billiton, as the operator of the field, holds a 45 per cent interest with TotalFinaElf and Talisman holding 30 per cent and 25 per cent, respectively.

The Greater Angostura Field includes oil and gas discoveries at Aripo, Kairi, and Canteen.

In 1999, BHP Billiton made a natural gas discovery on Block 2(c) with the Angostura-1 well.

In 2000, the Aripo-1 well also encountered a thick interval of gas pay and a thin oil reservoir while the Kairi-1 well discovered oil and gas in August 2001.

First phase

In February 2003, following the completion of an appraisal drilling programme in 2002, BHP Billiton committed US$327 million to the development of the first phase of the Angostura integrated oil and gas development of the estimated gross of US$726 million.

Liquid hydrocarbons have been produced from this field since January 2005.

The state gas company signed a similar agreement with EOG Resources Trinidad for the supply of 110 MMscf/d of gas for a period of 15 years commencing no later than 2010.

The gas will be supplied from EOG's Offshore Block 4(a) or the Toucan natural gas field, via the new pipeline system.

NGC's transmission and distribution of gas is accomplished through its 446 mile (719 km) network of pipelines.

NGC's current system capacity is about 4.0 billion cubic feet per day (Bcf/d) and with the completion of the Beachfield Upstream Development (BUD) pipeline in the fourth quarter of this year, the capacity would be increased to 4.6 Bcf/d.

The distribution system comprises a mix of 4-inch, 6-inch and 16-inch pipelines that deliver gas supplies to NGC's large industrial customers in the Port Lisas industrial estate and to over 100 light industrial and commercial customers throughout Trinidad.

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