Industry News

Centrica to Sell its Entire Portfolio of Gas Assets in Trinidad and Tobago to Shell

Trinidad and Tobago: Shell buys the entire Trinidad and Tobago gas assets from Centrica for exploration and production activities at initial investment of approximately USD30 million. The assets consist of a 17.3% interest in the producing NCMA-1 Block and operated interests in two undeveloped blocks that is NCMA-4 (80%) and Block 22 (90%). Also, Centrica is expected to receive further payments subject to Block 22 and NCMA-4 reaching agreed project milestones. The transaction is expected to close in the first half of 2017.

TechSci Research depicts that the buying of natural gas asset in Trinidad and Tobago would drive the LNG market globally. Moreover, growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favorable government policies is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of TechSci Research “Global LNG Market Competition Forecast and Opportunities, 2011-2021”, global industrial valves market is projected to cross global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. Also, with increase in development activities by Shell to explore and produce gas is expected to boost the demand for LNG. In addition, increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.

Relevant News