Shell and NGC End Gas Supply Dispute Over Aphrodite Field
Trinidad and Tobago's National Gas Company (NGC) and British energy major Shell have reached an agreement over the supply terms of natural gas 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 its first production expected in the second quarter of 2027. NGC Chairman Gerald Ramdeen told Reuters that the revised terms significantly improved the economics for his company compared to previous discussions.
According to Ramdeen, the concluded terms brought 400% more value to NGC than earlier proposals. The Aphrodite development is expected to provide a modest boost to Trinidad's gas supply, which has been declining in recent years due to reduced LNG exports and plant closures.
In related news, NGC has signed an agreement with EOG Resources to purchase the company's share of gas from the Coconut project offshore Trinidad. This will add 300 billion cubic feet of gas to NGC's supply, with all of it directed towards Trinidad's petrochemical sector.