Shell Trinidad and Tobago Ltd. (Shell), a subsidiary of Shell plc, has made a Final Investment Decision (FID) to proceed with the Manatee project, an untapped natural gas field located in the East Coast Marine Area (ECMA) of Trinidad and Tobago.
Leveraging Existing Assets for Growth
Manatee will enable Shell to bolster its Integrated Gas business by capitalizing on development efforts in the ECMA, one of the country’s most productive gas-producing regions. The ECMA currently houses Shell’s largest gas-producing fields in the country, including Dolphin, Starfish, Bounty, and Endeavour.
The Manatee natural gas field will serve as a supplemental supply for the country’s Atlantic LNG facility. Enhancing utilization at existing LNG plants is a critical strategy for maximizing the potential of Shell’s current assets.
Aligning with Shell’s LNG Growth Strategy
Shell aims to expand its LNG business by 20-30% by 2030 compared to 2022 levels. The company also plans to increase LNG liquefaction volumes by 25-30% relative to 2022, as outlined at its Capital Markets Day in 2023.
Manatee is scheduled to commence production in 2027. Once operational, it is anticipated to reach peak production of approximately 104,000 barrels of oil equivalent per day (boed).
Ownership and Development Details
Shell is the operator of Manatee, holding a 100% working interest under the sub-Block 6D Production Sharing Contract.
The Loran-Manatee field was discovered in 1983 and subsequently appraised through four wells. Loran represents the portion of the field in Venezuelan waters, while Manatee represents the portion in Trinidad and Tobago waters.
Historical Background of the Field
In 2007, the Government of Trinidad and Tobago (GORTT) and the Government of Venezuela (GOVEN) signed a Framework Treaty covering all cross-border fields. In 2010, they signed a Unitization Agreement specifically for Loran-Manatee. However, in 2019, the agreement was terminated, allowing each country to independently develop its share of the field.
The project entails a Normally Unattended Installation platform situated in the ECMA acreage. Eight development wells will be connected via a 110 km, 32-inch pipeline to the Shell-operated onshore Beachfield gas processing facility. From there, the gas will be exported to the Atlantic LNG facility and the National Gas Company of Trinidad and Tobago for the domestic market.
Meeting Global and Domestic Demand
Global demand for LNG is projected to increase by over 50% by 2040 as industrial coal-to-gas switching accelerates in China, South Asia, and Southeast Asia. These regions are expected to utilize more LNG to support their economic growth, according to Shell’s LNG Outlook 2024.
“This project will contribute to meeting the rising global demand for natural gas while also addressing the energy needs of our customers in Trinidad and Tobago,” commented Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.