News article.....Two points of interest.
First being that the SPT is going to be looked at, if this is reformed it means more money for TXP for their oil production.
Second being they are expecting LNG demand to boom and they are short of gas, which means the government needs Cascadura online asap. So we may indeed see Cascadura online by end of July as planned.
https://newsday.co.tt/2022/03/03/trade-in-times-of-war-pandemic-impact-on-trinidad-and-tobagos-economy/ ...............“The oil price above US$50 per barrel means the Government will collect SPT (supplemental petroleum tax) from most oil production, and above US$75 per barrel, it collects SPT from small onshore producers. This increase in price means companies like Heritage, Perenco and Trinity have more free cash flow, which can be used for reinvestment in drilling.
However, the SPT remains an obstacle to investment and the industry expects the Minister of Energy to address this soon “The Government expected to collect $43.3 billion in revenue in 2022, I don’t see them falling below this forecast figure, but I don’t see it going much higher. In short there is no 'boom' effect, because booms are periods where we have a price spike and a production ramp-up," Ramnarine explained.
He added that with ammonia priced at US$1,085 per tonne it was expected to climb higher in coming weeks as Russian ammonia exports via the Ukrainian port of Yuzhnyy have been suspended, and upstream companies that sell natural gas to the NGC will benefit significantly.
“It will also benefit the NGC. The price the NGC realises for the natural gas it sells to the ammonia plants at Point Lisas varies with the price of ammonia. Overall, high ammonia prices are good for TT, given our strong position in the ammonia business, although that position has been weakened due to lower natural gas supply,” Ramnarine said.
He also pointed out that the Russia-Ukraine crisis will cause European countries to increasingly lean towards LNG, in which TT was still a major player.
Unfortunately, Ramnarine said, the closure of Train 1 and reduced production from Trains 2, 3 and 4 owing to lower natural gas supply has set back TT, and the benefits in the area would be minimal.
“Given the higher natural gas prices all over the world, TT should experience a bump in LNG-related revenue. However, this will be tempered by lower LNG production and the closure of Train 1. Our low natural-gas production means we are not poised to reap the full benefit of higher prices.”