The 20th Ministerial Meeting of Gas Exporting Countries was held in Trinidad and Tobago in mid- November and the Ministry of Energy hosted a T&T Gas Symposium which featured a keynote address by the Prime Minister, Dr. the Honourable Keith Rowley.
The Prime Minister took the opportunity to share the importance of gas in the demand for cleaner energy and reiterated the role it will play in moving toward a low carbon future.
One area that the Prime Minister sought to gather support from the other GECF countries was in the area of gas pricing.
When citing the price of gas many persons in T&T wrongfully use the Henry Hub price. In most instances, gas prices vary regionally and in Trinidad the price is often set based on the final price of the commodity which is being produced.
Dr Rowley also said in his speech, “I would like to encourage the GECF to work expeditiously to develop and implement the Gas Pricing Index, which I know many members have been working on assiduously. Now more than ever, the need for such a global reference price is evident, in order to protect both producers and consumers alike.”
The Prime Minister also indicated that there needs to be more flexibility in LNG contracts and supply contracts. He added that for LNG this issue is one that “needs careful consideration so that all parties involved are able to derive benefits commensurate with the quantum and character of the risks undertaken.”
Dr Rowley also said that “supply contracts must become less rigid in order to promote a more dynamic market with the ability to respond quickly to changes in market conditions.”