bp Trinidad and Tobago sanctions Ginger gas project, reports new gas discovery at Frangipani

bp Trinidad and Tobago has sanctioned the Ginger gas project and confirmed a major gas discovery at the Frangipani exploration well, marking two critical developments in its efforts to sustain and expand natural gas output across its Trinidadian offshore acreage. These milestones underscore the company’s growing emphasis on high-return, infrastructure-led upstream projects in a market where demand for natural gas remains central to energy security and decarbonisation goals.

The Ginger gas project, situated about 50 miles southeast of Trinidad in waters less than 300 feet deep, represents the latest subsea development to be integrated into bp’s existing production network. With four planned subsea wells and subsea trees tied back to the Mahogany B platform, the Ginger development is set to become bp Trinidad and Tobago’s fourth subsea installation. First gas is expected in 2027, with peak production capacity anticipated at 62 thousand barrels of oil equivalent per day. As one of ten major global projects bp intends to bring online between 2025 and 2027, Ginger plays a key role in the operator’s broader strategy to meet evolving energy needs while maximising returns from capital-efficient ventures.

In recent years, bp has increasingly prioritised natural gas projects that can be delivered rapidly and integrated into existing offshore infrastructure. This model reduces development costs and environmental impact while enabling faster time-to-market for discovered resources. The Ginger subsea project exemplifies this approach, building on operational experience from previous installations such as Juniper and Cassia Compression.

How does the Frangipani exploration well expand bp’s resource base?

Located east of the Mahogany field and not far from the Ginger site, the Frangipani exploration well encountered multiple stacked gas-bearing reservoirs in a single geological structure. While early in its assessment, the well signals promising new resource potential that bp Trinidad and Tobago is actively evaluating for fast-tracked development. The operator holds a 100 percent working interest in both the Frangipani and Ginger assets, giving it full strategic flexibility in how and when to develop these discoveries.

Drilling at the Frangipani well is particularly significant given the maturity of some of Trinidad’s legacy gas fields. New resource identification near established production infrastructure could extend the life of existing assets and support ongoing liquefied natural gas (LNG) exports, which are vital to Trinidad and Tobago’s economy. The discovery adds to bp’s exploration success in the Columbus Basin, where the company has operated for over five decades and continues to find economic hydrocarbons at relatively low exploration risk.

How does Ginger gas project align with bp’s capital strategy and global upstream shift?

The approval of the Ginger gas project aligns with bp’s renewed focus on resilient hydrocarbon investments that generate robust returns under a disciplined capital framework. In early 2025, bp p.l.c. announced a reset of its energy strategy, which includes increasing annual upstream investment to around $10 billion while scaling back renewable energy expenditure. The company aims to grow its upstream production to between 2.3 and 2.5 million barrels of oil equivalent per day by 2030, with expectations of delivering an additional $2 billion in operating cash flow by 2027.

Projects like Ginger are central to this transformation. By developing brownfield opportunities within its existing offshore footprint, bp can capitalise on synergies between exploration and infrastructure, reducing capital intensity and enhancing project economics. The Ginger subsea project benefits from these efficiencies, drawing on engineering and operational knowledge from previous developments in the region. The project also meets bp’s internal return thresholds and is fully accommodated within its current capital expenditure plan.

bp Trinidad and Tobago president David Campbell explained that these developments affirm bp’s long-term commitment to Trinidad and Tobago, and reflect the company’s dual objectives of maintaining gas supply reliability and unlocking new resource opportunities. He noted that Ginger’s sanction and the Frangipani gas discovery serve both regional and global energy needs at a time when security of supply is paramount.

How does Trinidad and Tobago fit into bp’s global energy portfolio?

Trinidad and Tobago remains one of bp’s most significant upstream provinces outside the United States. The company currently operates 12 offshore platforms, two subsea installations, and two onshore processing facilities across the country. Natural gas from these assets supports the Atlantic LNG complex in Point Fortin, which supplies liquefied gas to international markets.

The country’s strategic location, well-established regulatory framework, and proximity of mature and frontier acreage make it a favourable jurisdiction for upstream investment. bp’s long history in the region has enabled it to build deep subsurface understanding and strong operational capabilities—factors that contribute to continued success in projects like Ginger and Frangipani.

In addition to its efforts in Trinidad, bp reported new gas discoveries offshore Egypt in Q1 2025 at the El Fayoum-5 and El King-2 wells, and began production at the second development phase of the Raven field. These international milestones reflect bp’s global push to unlock value through conventional oil and gas investments during a period of transition and capital reallocation.

What does the market think of bp’s upstream pivot?

As of April 2, 2025, BP p.l.c. (NYSE: BP) was trading at $33.81, representing a modest daily increase of 0.089%. The stock remains approximately 19.5% below its 52-week high of $40.40, reflecting ongoing investor caution amid the company’s strategic shift. Despite market volatility, analysts maintain a “Moderate Buy” rating on BP, with a 12-month average price target of $38.20, implying potential upside of over 13%.

The latest exploration and development updates in Trinidad may support improved sentiment as bp demonstrates follow-through on its upstream growth commitments. However, its broader strategic reorientation has also faced resistance. In March 2025, the Local Authority Pension Fund Forum (LAPFF) urged shareholders to oppose the re-election of board chair Helge Lund, citing the company’s retreat from renewables and increased focus on fossil fuels.

While this governance tension has added complexity to BP’s investor narrative, the company’s near-term strategy remains focused on delivering value through traditional energy sources. In this context, progress on the Ginger gas project and evaluation of the Frangipani exploration well signal to shareholders that Trinidad and Tobago remains a cornerstone of its near-term investment and output growth strategy.

What are the implications for regional gas markets and bp’s long-term outlook?

The advancement of the Ginger project and Frangipani discovery may also help ease concerns around Trinidad and Tobago’s declining gas production, which has impacted domestic industrial supply and LNG export volumes in recent years. By leveraging existing platforms and field experience, bp is in a position to stabilise and even increase its production footprint in the region, supporting both local economic activity and global energy supply.

Energy analysts have suggested that these twin developments could catalyse further upstream activity in Trinidad’s offshore acreage, particularly if bp moves quickly to appraise and commercialise the Frangipani resource. The approach reflects broader industry trends, where operators seek to maximise near-field opportunities while balancing capital discipline with supply resilience.

With drilling at Ginger scheduled to resume in Q4 2025 and evaluation of Frangipani ongoing, bp’s ability to deliver on its execution timelines will be closely watched by the market. If successful, these projects could not only reinforce Trinidad and Tobago’s role in global gas supply chains but also demonstrate the viability of bp’s new upstream-focused strategy in real-world conditions.