June 2014 by Caribbean Energy Information System

CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : JUNE 2014

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CARIBBEAN Petroleum Update A Publication of the Caribbean Energy Information System (CEIS)

JUNE 2014 ISSUE

A G L A N C E AT T R I N I D A D & T O B A G O ’ S NATURAL GAS INDUSTRY

or decades Caribbean nations have been battling to find cheaper alternatives to power their economies as most of them are net importers of Petroleum fuels. However, with the exception of Trinidad and Tobago, Barbados, Cuba and the Dominican Republic, other countries in the Caribbean lack the necessary infrastructure to utilize LNG and as such this has exacerbated their dependence on imported fuels. The success of the natural gas industry in Trinidad & Tobago has led to a boom in the demand for LNG world-wide. In many other countries across the

globe, the product is increasingly being used with particular focus on the electricity and transport sectors as these are the sectors that require more energy. Jamaica one of the largest importers of petroleum fuels in the Caribbean has been exploring the use of LNG to be used in the Electricity and the Bauxite/Alumina sectors, but efforts towards this have been stalled, as Jamaica would ﬁrst need to have a re-gasiﬁcation facility in place. Other Caribbean countries have also been discussing use of the product but face similar challenges as Jamaica. In this issue of the CEIS

To access CEIS website

Petroleum Update we take a glance at the Natural Gas Industry in Trinidad and Tobago. Trinidad and Tobago is the Caribbean’s first Natural Gas economy resulting from the primary energy matrix comprising largely of Natural Gas. Using Natural Gas allows Trinidad and Tobago to experience lower electricity rates relative to neighbouring islands. The twin island republic up to 2007 has been the largest exporter of natural gas to the United

continued on page 2/

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : JUNE 2014

A G l a n c e a t T r i n i d a d a n d To b a g o ’s N a t u r a l G a s I n d u s t r y continued from page 1/ States. This changed when the Shale Gas revolution in the United States forced the government to explore alternative markets in South America and Asia for the product. Trinidad has always been a progressive economy, with its ﬁrst successful oil well drilled in 1866 and in 1908 commercial oil production began. It is not only the Caribbean’s largest petroleum producer, but it transitioned from being an oil based economy to natural gas in the early 1990s. This leap to the forefront in natural

gas ignited rapid growth as economic growth increased and continues to increase to this day. Proven Crude Oil reserves in 2013 were estimated at, approximately 728 million barrels while Natural Gas reserves were 25.24 trillion cubic feet (Tcf) as indicated in Ryder Scott Audit 2012. Trinidad and Tobago entered the LNG business in 1999 when Atlantic LNG Train 1 was commissioned. In December 2005, the Atlantic LNG’s fourth production train for Liqueﬁed Natural Gas (LNG) began production.

With the addition of train 4, Atlantic LNG’s experienced sustained phase increased production of LNG for the proceeding ﬁve years with a 28% marginal increase in 2006 and sustained increases thereafter up to 2010 as shown in the Graph 1. The Phoenix Park Gas Processors Limited (PPGPL) Natural Gas Liquids (NGL) complex located in the Port of Savonetta is one of the largest natural gas processing facilities in the Western Hemisphere. After processing, the gas is then transferred to the

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Natural Gas workers making adjustments at an installation at Point Lisas, where Trinidadian exports are shipped to the United States. Image source: http://www.nytimes.com/

various power generators (POWERGEN, TGU or Trinity Power) for generation of electricity and to the petrochemical plants for use as a feedstock. Furthermore, the extracted NGLs are also fractionated into Propane, Butane and Natural Gasoline as shown in Graph 2 (on page 2). In 2012, The LNG sector was the main user of Natural Gas, accounting for some 56.8% of the total utilization of the commodity in that year. Other major consuming sectors included the Fertilizer sector which accounted for 16% of total utilization, while the manufacturing and power generation used an estimated 14% and 8% respectively. Predominantly known as methane gas, this gas is converted to

liquid form for the ease of storage and transportation. A typical LNG process include the extraction and transportation of the gas to a processing plant where it is puriﬁed by removing condensates such as water, oil, mud as well as other gases. The LNG process will also seek to remove mercury from the gas stream. The gas is then cooled down in stages until it is liqueﬁed. Since production of LNG started in Trinidad in 1999, the United States was its major export market. However due to the Shale Gas revolution in in 2007, the country no longer exports large quantities of this commodity to the United States. Despite the reduction in exports of LNG to the United States, production and exports have

for the most part remained unaffected with minimal impact on revenue earned. This is mainly due to the divergence of Trinidad LNG exports to higher paying markets in South America, Europe and Asia. Emerging Shale Gas pro¬duction has also brought prices down, encouraging the revival of some idled ammonia and methanol plants and the construction of new facilities that will commence operation over the next few years. In such a diverse Oil and Gas environment the impact in Trinidad and Tobago’s downstream gas markets is expected to be very positive.

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : JUNE 2014

PETROLEUM NEWS & HAPPENINGS Electricity heading to Hanover village at last [...]...Read more The World has 53.3 Years of Oil Left [...]...Read more Shell in preliminary Nigeria oil spill judgement [...]...Read more ‘Sympathise with your light bills’ [...]...Read more

Caribbean Energy Rubis Rebrands with Digital Price Signs [...]...Read more Jamaica’s weighs using sugar for energy or rum [...]...Read more Delta submits lowest bids to fuel BVIEC generators [...]...Read more JPS starts use of intelligent device to stem theft [...]...Read more Ethanol Producer Looks Inward For Feedstock [...]...Read more Energy Minister Meets With Indian Energy Officials [...]...Read more US eases oil export restrictions [...]...Read more Guyana to strengthen electricity system’s reliability and efficiency with IDB support [...]...Read more

Graham fears Cuban oil disaster [...]...Read more SKELEC says Smart Meters safe [...]...Read more BHP Billiton farms into deepwater Trinidad and Tobago blocks [...]...Read more JPS Wants Right To Replace Old Generators [...]...Read more Israeli Company Buys Jamaica Private Power Company [...]...Read more El Salvador Enters Venezuela’s Petrocaribe Oil Alliance [...]...Read more Trinidad, BG Talk Energy [...]...Read more Cuba and Sherritt of Canada Sign Deal to Increase Oil Production [...]...Read more Gov’t names energy team, outlines terms of reference [...]...Read more

CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : JUNE 2014

Prices at the Pump

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JUNE 2014

Retail prices for Regular Unleaded Gasoline in the thirteen Caribbean countries reviewed at the end of June 2014 showed increases in prices for Dominica and Jamaica between 0.7% and 1.4% respectively. Belize experienced a decreased of 1.6% in price while prices in the remaining countries remained stable. The average retail price at the end of June 2014 was stable when compared to the previous month. Regular Unleaded Gasoline: Average Retail Price (US$/Litre) 2014 COUNTRIES

JAN

FEB

MAR

APR

MAY

JUN

AVG

ANTIGUA/ BARBUDA

1.23

BAHAMAS [91 OCT]

1.36

1.38

1.43

1.39

BARBADOS

1.54

1.57

1.59

1.66

1.76

1.65

BELIZE [87 OCT]

1.41

1.43

1.47

1.49

1.51

1.48

1.47

B.V.I. [87 OCT]

1.21

DOMINICA

1.15

1.16

1.18

1.19

1.20

1.18

GRENADA (95 OCT)

1.26

1.28

1.31

1.29

JAMAICA 87 Octane[E10]

1.23

1.24

1.26

1.28

1.26

1.28

1.26

ST. LUCIA

1.32

1.31

ST. VINCENT/ GRENADINES

1.08

1.07

1.09

1.08

SURINAME [95 OCT]

1.39

1.43

1.46

1.43

TRINIDAD/ TOBAGO [92 OCT]

0.42

TURKS/ CAICOS

1.52

NOTE: *US Gallon = 3.785 L *Imperial Gallon = 4.546 L *As at November 1, 2009 MTBE was phased out from all gasoline blends in Jamaica and replaced with 10% Ethanol.

Comparative Retail Pump Prices Regular Unleaded Gasoline 2.00

JUNE Avg vs 6 Mths Avg (Jan - June 2014)

1.80

US$/Litre

1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00

13 Caribbean Countries

See prices for all products at www.cippet.org

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Image source at http://www.aga.org/Kc/aboutnaturalgas/Pages/default.aspx

International OIL PRICES

CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : JUNE 2014

Average Weekly & Monthly Crude Oil Prices (Apr June 2014)

108.00

107.23

106.00

US$/BBL

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103.90

104.00 102.00

101.92

100.00

Apr

98.00

May

Jun

96.00

Period

WK1

WK2

WK3

WK4

MTH AVG

International Crude Oil Prices ended the three month period April to June 2014 with an average price per bbl of US$105.78. The highest weekly price seen in June for the commodity was US$107.23/bbl-reflected in week three while the lowest price for the three month period was in May of US$100.30/bbl. The average price in June was 4.1% higher than the average price seen in May and 3.4% higher than the average price in April 2014. An average of the three month’s average prices reflected US$103.24/BBL.

FEATURED OFFERS: Caribbean Energy Information System (CEIS) primary report of historical annual petroleum energy statistics provided for 18 Caribbean Countries. Included are data on total energy production, consumption, and trade; overviews of petroleum, natural gas, electricity, as well as financial and environmental indicators for over twenty years.

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