By David Renwick
According to the Ryder Scott company, Trinidad and Tobago’s proven natural gas reserves were at their lowest level in 11 years last year – 12.2 trillion cubic feet (tcf). On the face of it, that seems a development worth worrying about.
But is it? According to Herman G Acuna, the company’s managing senior vice president, international, who flew down from his Houston, Texas, base to present the outcome of the 2013 non-associated gas reserves audit, “proved reserves are what eventually go to market”.
In other words, if a gas producing company wants to do a deal to sell gas, the buyer, whether the National Gas Co (NGC) or whoever, wants to know it has the proven reserves to fulfil the normal 15 or 20-year contract.
Equally important, the banks or shareholders from whom the money is being raised to support the investment for which the gas is intended, also need reassurance about the reliability of the gas supply, which only proven reserves can provide.
On the other hand, as Frank Look Kin, technical adviser to Minister of Energy Kevin C Ramnarine and a former NGC president, who attended the audit presentation, points out: “Reserves are added on from exploration but no company is going to go exploring for the sake of exploring, just so they can say I have plenty gas. They will only do that if they feel they can convert that plenty into money and that means you have to have the market.”