Shell’s multi-billion dollar bet on Manatee field set to transform global LNG market!

Shell Trinidad and Tobago Ltd., a subsidiary of Shell plc, has taken a significant step forward with its decision to develop the Manatee gas field located in the East Coast Marine Area (ECMA) of Trinidad and Tobago. This decision marks a critical phase in Shell’s strategy to expand its Integrated Gas business and leverage the rich gas-producing areas of the ECMA.

The Manatee project is set to provide a crucial backfill for Trinidad and Tobago’s Atlantic LNG facility, enhancing the utilization of existing LNG plants and maximizing the potential of Shell’s assets in the region. Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, stated, “This project will help meet the increasing demand for natural gas globally while also addressing the energy needs of our customers domestically in Trinidad and Tobago. The investment bolsters our world-leading LNG portfolio in line with our commitment to invest in competitive projects that deliver more value with less emissions.”

With construction slated to start in early 2025 and commercial operation expected by 2029, the Manatee gas field aims to reach a peak production of approximately 104,000 barrels of oil equivalent per day. This development is part of Shell’s broader initiative to grow its LNG business by 20-30% by 2030 compared to 2022 levels, with LNG liquefaction volumes also expected to increase by 25-30%.

Shell’s ambitious Manatee project in Trinidad and Tobago, set to significantly boost global LNG supply and support the energy transition.

The Manatee field, discovered in 1983 and previously part of a unitization agreement with Venezuela, is now independently developed by Trinidad and Tobago following the termination of the agreement in 2019. This autonomy allows for tailored development strategies that align with national energy policies and market demands.

Shell’s project involves a Normally Unattended Installation platform connected via a 110 km pipeline to the onshore Beachfield gas processing facility. This infrastructure is pivotal for exporting gas to the Atlantic LNG facility and supplying the domestic gas market of Trinidad and Tobago.

The strategic importance of LNG in the energy transition is underscored by its role in displacing coal in heavy industries and power generation, contributing to reduced local air pollution and carbon emissions. According to Shell’s Energy Transition Strategy 2024, global demand for LNG is expected to rise significantly by 2040, driven by industrial coal-to-gas switching in countries across Asia.

The Manatee project represents a substantial advancement in Shell’s global strategy, emphasizing the company’s commitment to sustainable energy solutions and its pivotal role in meeting the burgeoning global demand for LNG. This initiative not only supports economic growth in Trinidad and Tobago but also contributes to the global shift towards cleaner energy sources.