Five things to know about T&T, Venezuela's Dragon gas deal
Here are five things to know about the Dragon Field gas deal:
1. Dragon will produce 150 million cubic feet per day
The Dragon field, part of the Mariscal Sucre offshore gas project, is projected to produce an estimated 150 million cubic feet per day in the first year, with plans to increase to 300 million cubic feet later on. The Dragon Field contains approximately 2.4 trillion cubic feet of natural gas.
The Mariscal Sucre Dragon and Patao fields, located in water depths between 328-427 feet (100-130 metres), are situated nearly 25 miles north of Venezuela’s Paria peninsula in Sucre state.
It's expected that production from Venezuela's four fields which comprise the Mariscal Sucre project – Mejillones, Rio Caribe, Dragon and Patao – will reach 1.2 billion cubic feet per day of natural gas and 28,000 barrels per day of condensates, and will be directed primarily toward export.
2. Gas to be transported via 17km gas pipeline
The gas will be transported to the Hibiscus platform off the north-west coast of Trinidad, about 17 kilometres from the gas field. Hibiscus is jointly owned by the T&T government (NGC) and Shell.
According to a report by Offshore Energy Today, the project scope covers supply and installation of subsea flowlines, supply and installation of gas processing equipment onshore, and operational support for the subsea, offshore and onshore facilities.
Technip has been contracted to oversee procurement, installation and operation support contract by Petroleos de Venezuela S.A. (PDVSA), covering subsea, onshore and offshore facilities for an accelerated production system on the Mariscal Sucre Dragon development.
In March 2017, Shell signed an agreement with NGC and PDVSA to build a 17km pipeline from the Dragon Gas Field to the Hibiscus platform.
3. PM says details 'confidential'
Details of the deal are 'confidential', according to Dr Rowley, but he said the agreed-upon price was 'competitive'.
According to a release from PDVSA Minister of Popular Power of Petroleum and president of Petróleos de Venezuela, SA (PDVSA), Manuel Quevedo, will travel to Trinidad and Tobago to pursue agreements for 'a comprehensive oil association and gas at all levels, with the idea of boosting the full potential of both nations in terms of energy'.
4. Dragon Field's gas to be used for petrochemical products
In the first phase, the gas from the Dragon will boost the country’s gas supply for both the LNG and the petrochemical sectors. T&T plans to expand domestic gas production to 4.14 Bcf/d by the end of 2021.
5. Dragon Field pipeline project to cost approximately US$1 billion
Finance Minister Colm Imbert said the pipeline project for the Dragon Field gas deal is estimated to cost US$1 billion.
Speaking during the October 1, 2018 national budget presentation, Imbert said:
"A pipeline, to be built at a cost of $1 billion, will be owned in a joint venture company between the National Gas Company and Shell Trinidad. The pipeline will transport the natural gas from Eastern Venezuela to the Hibiscus Platform off the North Coast which is owned by Shell Trinidad."
First gas from Dragon is expected in 2020.
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