Shell taps KBR for engineering services for Manatee Gas Project in Trinidad and Tobago

KBR (NYSE: KBR) has announced that it has been awarded an engineering and procurement services contract for the onshore portion of the Beachfield Manatee upgrade, part of the expansive Manatee gas field project. This project, spearheaded by Shell Trinidad and Tobago Ltd., is a pivotal development for the country’s natural gas production and energy security efforts.

Project Overview

The contract encompasses engineering and procurement services for Shell’s Manatee project, located within the East Coast Marine Area (ECMA) of Trinidad and Tobago. The Manatee gas field is crucial to the country’s natural gas production, feeding into the Atlantic LNG facility—a major player in the global LNG market.

This recent contract award follows KBR’s successful delivery of the front-end engineering design (FEED) for the project. KBR worked as an integral part of Shell’s development team throughout this phase, ensuring a seamless transition to the next stage.

KBR’s Strategic Role

Jay Ibrahim, President of Sustainable Technology Solutions at KBR, expressed his excitement over this new phase of the project. He emphasised that KBR’s involvement in Shell’s Manatee development is a testament to its capabilities in delivering energy security solutions. Ibrahim highlighted KBR’s commitment to providing reliable and accessible natural resources while supporting the global shift towards sustainable energy practices.

Shell’s Strategic Expansion in Trinidad and Tobago

Shell’s Manatee project marks a significant phase in its strategy to expand its Integrated Gas business. The decision to develop the Manatee field was made in July 2024 and is crucial for maximising the potential of the ECMA’s rich gas resources. It will provide an essential backfill for Trinidad and Tobago’s Atlantic LNG facility, ensuring the efficient utilisation of existing LNG infrastructure.

Timeline and Development Details

The construction of the Manatee project is set to commence in early 2025, with commercial operations expected by 2029. At peak production, the project aims to achieve approximately 104,000 barrels of oil equivalent per day. This development aligns with Shell’s broader objective to grow its LNG business by 20-30% by 2030 compared to 2022 levels, with an anticipated increase in LNG liquefaction volumes of 25-30%.

The Manatee field, discovered in 1983, was previously part of a unitisation agreement with Venezuela. However, this agreement ended in 2019, allowing Trinidad and Tobago to independently develop the field. This autonomy has enabled the country to implement tailored strategies aligning with national energy policies and market demands.

Infrastructure and Impact

Shell’s development plan includes the construction of a Normally Unattended Installation (NUI) platform. The platform will connect via a 110 km pipeline to the Beachfield gas processing facility onshore. This infrastructure is crucial for exporting gas to the Atlantic LNG facility while also catering to Trinidad and Tobago’s domestic gas market.

KBR’s involvement in this project showcases its extensive experience in LNG projects worldwide and its ongoing commitment to assisting clients in navigating the complexities of the global energy transition, where natural gas remains a central component.

Expert Analysis: A Strategic Move Towards Energy Transition

Energy analysts view KBR’s involvement as a strategic enhancement of its global LNG portfolio, cementing its reputation in the market. The project not only strengthens KBR’s ties with Shell but also reinforces its positioning as a leader in the LNG and natural gas sector, crucial for the transition to lower-carbon energy sources.