Shell authorizes engineering, construction work on Manatee gas field

McDermott International

28/11/2023 22:27

By Curtis Williams
       HOUSTON, Nov 28 (Reuters) - Shell PLC  SHEL.L  has
authorized contractor McDermott International Ltd  MCDIF.PK  to
start engineering work on its Manatee gas field development
project off Trinidad and Tobago's east coast, the contractor
disclosed on Tuesday.
    Trinidad is Latin America's largest liquefied natural gas
(LNG) exporter, but its flagship Atlantic LNG project and its
petrochemical plants have been operating at reduced capacity due
to a shortage of natural gas. 
    McDermott said it got the green light to proceed on an
engineering, procurement, construction and installation (EPCI)
contract pending an investment decision. Trinidad and Tobago's
Energy Minister Stuart Young said he expects Shell to soon
approve the project.     
    "I expect in a very short time frame I will hear about a FID
(final investment decision) from Shell on Manatee," Young told
the country's Parliament.
    A Shell spokesperson said the project is progressing and the
company expects to reach FID next year. 
    Manatee is expected as soon as 2028 to produce 700 million
cubic feet per day to help ease the nation's gas shortfall.
Manatee is part of the cross-border Loran-Manatee discovery,
shared by Trinidad and Venezuela. 
    The field holds some 10 trillion cubic feet (tcf) of natural
gas, with 7.3 tcf on Venezuela's side and the remaining 2.7 tcf
on Trinidad's side.
    The countries negotiated for years to jointly develop the
reservoir and signed preliminary agreements, but the U.S.
imposed sanctions in 2019 on Venezuela's energy industry,
stalling the final deal.
    This year, Shell submitted, and the government of Trinidad
and Tobago accepted, the field development plan that calls for
peak production of 700 million cubic feet per day (mcfd) of gas.
    "This award follows our successful delivery of the front-end
engineering design for the Manatee gas field," said Mahesh
Swaminathan, senior vice president, subsea and floating
facilities at McDermott. 

 (Reporting by Curtis Williams in Houston; Editing by Josie Kao)
 ((Curtis.Williams@thomsonreuters.com; +1 346 324 7560;))