Shell and NGC Break Deadlock Over Offshore Gas Field Supply Terms

Trinidad and Tobago's National Gas Company (NGC) has reached an agreement with Shell for natural gas supplies from Shell's Aphrodite field, ending a pricing dispute that had delayed the project.

The agreement clears the way for development of the offshore field, with first production expected in the second quarter of 2027. The Aphrodite development is expected to provide a modest boost to Trinidad's gas supply as the Caribbean nation grapples with years of declining production.

NGC Chairman Gerald Ramdeen said that the revised agreement significantly improved the economics for NGC compared with terms previously discussed, bringing 400% more value to the company. The agreement allows NGC to purchase gas from Shell and supply it to downstream customers, including Trinidad's petrochemical sector and Atlantic LNG, in which Shell holds a 45% stake.

Separately, NGC has signed an agreement with EOG Resources to purchase the company's share of gas from the Coconut project offshore Trinidad. The completion of this agreement will add 300 bcf of gas to NGC's supply, and all of the gas from EOG's share will be directed to Trinidad's petrochemical sector.