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In 1976, Elton John penned these words: “What’ve I gotta do to make you love me?/ What’ve I gotta do to make you care?/ It’s sad, so sad/ It’s a sad, sad situation/ And it’s getting’ more and more absurd/ It’s sad, so sad/ Why can’t we talk it over?/ Ohh, it seems to me/ That sorry seems to be the hardest word.”
These lyrics, which speak of a love lost, came back to me this last Republic Day weekend. On Sunday 22, the Express newspaper carried a story about the implementation of the restructured Atlantic LNG plan.
This story was five years in the making. This means the structure is now in place for cross-border, Caribbean, and Venezuelan gas. Yet the media silence was deafening.
Significantly, the new agreement simplifies the ownership structure across all four trains.
In December 2023, Reuters reported on the agreement. It noted that the deal “pave(d) the way for the largest liquefied natural gas (LNG) export facility in Latin America to return to full production”. (Reuters, 4 December 2023).
“Atlantic LNG is a significant contributor to Shell and BP’s LNG portfolios. In 2022, Shell’s share of the facility’s output was 4.4 million tonnes or 15% of its global production.
“According to the companies’ annual reports and figures from Trinidad and Tobago’s energy ministry, BP’s take was 3.4 million tonnes or 18% of its global output.”
Shell restricted its comments about the commercial details: “[…] While we are unable to discuss the commercial terms of the new structure, we believe that the overall structure is fair and equitable for all parties, including Shell…”
President of BP’s Trinidad operations, David Campbell, said: “For BP, the new structure sets a strong foundation for future investment in T&T’s energy industry, including the deepwater.”
Forbes reports that meetings were held between Campbell, Stuart Young and Venezuelan oil minister Rafael Tellechea.
It noted that former UK Prime Minister Boris Johnson secretly visited President Nicolas Maduro in February 2024 and spoke about the war in Ukraine, the territorial dispute over the Essequibo, and Venezuelan elections.
The BBC clarified that this Johnson visit was not official and was not paid for by the UK government. Curiously, he flew from a holiday in the Caribbean.
Who paid for this trip? Was this trip pre-planned, and was the holiday a ruse? If the purported reasons for the visit are examined, was the trip not about commercial interests?
What is the top commercial interest that ties together the three topics? Is it not global gas supplies?
The US, under president Joe Biden, obviously sees this deal as a positive development: “Venezuela also has the world’s largest proven oil reserves, and a scaling back of US sanctions on Venezuela’s oil industry would benefit both countries economically.”
In 2020, as part of the restructuring, the parties (Venezuela, Trinidad and Tobago, Shell, BP) agreed to calculate Trinidad and Tobago’s LNG prices from a mix of global oil benchmark Brent crude futures and three natural gas benchmarks.
Previously, the Henry Hub prices ruled. In December 2023, Energy Minister Stuart Young told Parliament the country benefited from the new formula that had earned an additional $2.5 billion since its implementation.
The potential numbers also put this new deal in perspective. Gregory McGuire estimates:
The Government’s delegation included: Minister of Energy and Energy Industries Franklin Khan, Minister in the Office of the Prime Minister and the Ministry of the Attorney General and Legal Affairs Stuart Young, NGC president Mark Loquan, and Ministry of Energy and Energy Industries advisors Leroy Mayers, Heidi Wong and Richard Jeremie.
Shell’s delegation included Integrated Gas and New Energies director Maarten Wetselaar, executive VP Integrated Gas Ventures De La Rey Venter, VP and T&T Country chairman Derek Hudson and Atlantic LNG Business Opportunity manager Anders Ekval.
Photo: OPM
“The Plataforma Deltana has three fields that straddle the borders of T&T and Venezuela: Loran-Manatee, Coquina and Kapok/Dorado. These fields, and that entire area, are estimated to have between 21-38 trillion cubic feet (tcf) of reserves…the Dragon field…is estimated to have more than 12 tcf of reserves and production potential of 1.2-1.5 billion cubic feet a day.”
The McGuire comments are noteworthy since they identify the resources at three levels, including the production capacity.
We should not forget the severe gas shortages that plagued the Point Lisas companies. In 2011, Charles Percy, managing director and chief executive officer of Methanex Trinidad Limited, spoke of the potential loss of tens of millions of dollars in national revenue.
Photo: Getty Images
Remember all the lawsuits against NGC for the short supply of gas?
“Gas curtailments have occurred commencing 2010 and were left unaddressed leading to a number of claims and counter-claims arising from the 2010-to-2015 period. These claims were inherited by the current NGC executive.
“These matters are sub judice and are being defended by NGC and its attorneys. NGC cannot comment publicly on these matters.”
In 2023, the Energy Chamber’s Dax Driver wrote: “One of the key issues we face is that most citizens, including many leaders in society, just do not understand the crisis that we are facing.
“Sure, it is a slow-burning crisis—unlike crime or the pandemic—but it is a crisis for the country. Trinidad and Tobago’s economy is based on the production and processing of natural gas, and our gas production has fallen by a third in the past decade. If we do not make changes, it will continue to fall.”
The unremarked part in the recent narrative is the past calls for the resignation of Mr Mark Loquan as the National Gas Company (NGC) president.
The shadow minister for energy, Mr David Lee, was particularly disparaging of Mr Loquan’s abilities, calling him “a very good procurement individual”. Lee suggested: “… it is time that Mr Loquan resigns.”
He made this statement five years after Loquan’s appointment. His focus then was on the dividends paid from the National Gas Company. This position was completely understandable, given the use of dividends from 2010 to 2015.
However, in 2016, at the time of Loquan’s appointment, WISE Stockbrokers Ltd posted: “Mr Loquan has over 30 years’ experience in the petrochemical industry. He has held numerous leadership roles in countries including the USA, Europe, Africa and Trinidad and Tobago. His most recent role was that of CEO Yara Pilbara in Australia.”
Lee, Senator Wade Mark and Dave Tancoo persisted in their calls for his resignation. The reason was the money spent on Train 1 refurbishment and the NGC Board’s request for legal immunity for their actions.
All refused to heed Young’ counsel. Young advised: “At the appropriate time we will provide the accurate information surrounding the decisions taken with respect to Atlantic LNG. However, due to the current stage of discussions and the sensitive negotiations, that time is not now.”
He amplified: “…ongoing negotiations are very complex and deal with Atlantic’s future with the objectives of securing value for the citizens of Trinidad and Tobago… and the successful continuation of operations in a rapidly changing global energy environment.”
(Copyright Office of the Parliament 2020)
Loquan never responded until he announced his retirement in 2024.
“The only thing that brought me back was that the country would have probably been a lot worse off if I […] decided […] to just take care of me. In hindsight, I am happy I didn’t do that because […] a lot had to be accomplished, which I think the organisation has now done.
“[…] There is a lot more hope than when we started. Dragon still has to be built, and so on.”
In the same interview, he noted: “We needed to get Atlantic restructuring, we knew we needed to get Dragon, we knew we needed to get contracts in the Estate done for continuity, claims removed.
“Without those things, NGC probably will not be surviving, and this is such a central, I will say, cog in the wheel for the whole economy.”
This record cannot be denied. Loquan delivered for this country.
Photo: Chevaughn Christopher/ CA-images/ Wired868
He has also laid out the path for the future: “There is an inefficient use of gas when you put it in electricity, and you need to get the return value in the Petchem and LNG. So the more we use in that space (electricity generation) it’s not good for us.
“So if you look at the demand side, we waste energy, and we have a long way to go when it comes to making sure every household—every school child, every adult—starts to think in a manner that says, you know, I better think twice before I do this.”
Why, then, is it so hard for Mrs Kamla Persad-Bissessar, as the opposition leader, to say sorry—not only about his illness but for misreading the energy situation and hauling Mr Loquan over the coals?
These were her words: “My views on Mark Loquan’s performance in a professional capacity at NGC are well known. However, Mr Loquan is now retired. He is now a private citizen and simply a human being who’s fighting a hard battle with a terrible illness.
“I wish him the best and hope he makes a full recovery. May God grant him and his family strength, courage and comfort as he fights to overcome his illness.”
We should say: “Thank you very much, kind Sir!”
With hearts filled with gratitude, we pray for you and your family in this challenging time of your life. You have shown us what a true patriot looks like. May we be worthy of you.
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