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Caribbean Islands Natural Gas
In the late 1980s, Trinidad and Tobago had proven reserves
totaling approximately 481 billion cubic meters of natural gas, as
well as a further 566 billion cubic meters that were likely to be
recovered. Trinidad and Tobago contained about 0.3 percent of world
gas reserves and contributed about 0.2 percent of world gas
production. A large percentage of Trinidad and Tobago's gas was not
associated with oil production and was located in separate fields
off both the southeastern and the northern coasts. Although gas
deposits were discovered in the 1940s, significant production did
not get underway until the 1950s, when natural gas was needed to
supply the small Federations Chemical (Fedchem) fertilizer plant.
From 1973 to 1986, proven reserves of natural gas more than doubled
during oil explorations off the country's southeastern shores.
These discoveries encouraged the natural gas-based development
strategy that evolved in the 1970s. The production of natural gas
nearly doubled in the 1970s and expanded rapidly in the 1980s to
meet the growing demand of the petrochemical industries that were
coming on-stream. Gas production reached a record 7.6 billion cubic
meters in 1985. The efficiency of production also increased,
reaching a utilization rate of 78 percent by 1985. Amoco possessed
approximately 72 percent of natural gas reserves and produced over
80 percent of the gas in 1985. Whereas oil fueled the country's
economy throughout the twentieth century, the nation was expecting
the same from natural gas and related industries into the twentyfirst century.
By the 1980s, natural gas was becoming increasingly integrated
into the national economy. Natural gas feedstock was the most
important input to the anhydrous ammonia, urea, and methanol plants
that commenced operations at the Point Lisas industrial park in the
early to mid-1980s (see Role of Government, this ch.). Natural gas
also fueled over 70 percent of the country's generators of
electricity, powered the new mill of the Iron and Steel Company of
Trinidad and Tobago (Iscott), and was piped into Port-of-Spain
residences. New gas pipelines along Trinidad's southern and western
coasts were a decisive factor in the country's greater utilization
of its gas resources during the 1980s. The steady supply of natural
gas to the Point Lisas industrial park became essential to
efficient operations, as demonstrated by the production problems
that resulted from supply shortages in 1982. The National Gas
Company (NGC) was the prime purchaser and distributor of natural
gas. The NGC allocated over 60 percent of all gas to fertilizer
production during the mid-1980s. The methanol plant, the steel
mill, and oil companies in general consumed most of the balance of
gas production. The NGC sold the gas at a wide range of prices,
which included generous subsidies to the infant petrochemical
industries.
Data as of November 1987
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