Shell and NGC Clear Pricing Dispute for Trinidad Gas Project

Shell and Trinidad's National Gas Company (NGC) have reached an agreement on natural gas supply terms from Shell's Aphrodite field, clearing the way for development of the offshore project.

The agreement ends a pricing dispute that had delayed the project. NGC Chairman Gerald Ramdeen told Reuters that the revised terms significantly improved the economics for NGC compared to previous negotiations.

According to Ramdeen, the concluded terms brought 400% more value to NGC than before. Shell approved the project after months of negotiations between the two parties over gas prices.

The Aphrodite development is expected to provide a modest boost to Trinidad's gas supply as the Caribbean nation struggles with years of declining production that have reduced LNG exports and forced the closure of several petrochemical plants.