Liquefied Natural Gas (LNG) Production, Prices and Market Performance

For the review period July to August 2009, total production of LNG averaged 59,850,350 MMbtu, increasing over the review period by 13%. Train’s I production was relatively stable, while fluctuations at the other plants were due to operational issues experienced.

For the period April to June 2009, Trinidad and Tobago exported 115,827,937 MMBtu of LNG. Of this total, the major exports were sold to the USA, which imported 38%, and the European market (UK, France, and Spain), which imported 35%. During the current quarter, LNG continues to export to Argentina, representative of the continued expansion of Trinidad and Tobago’s LNG markets.

Table II (a) shows LNG production for the period under review, and compares the year-to-date average of LNG for the period October 2008 to August 2009. Table II (b) highlights the five-year average LNG production schedule. The chart below shows LNG exports of Trinidad and Tobago for the period under review.

Despite the continued global economic crisis, prices reflect a continuing upward trend following the lowest Henry Hub price in May, 2009 of US$3.33/MMBtu. For the period July to August 2009, Henry Hub prices average US$3.67/MMBtu. Henry Hub prices for the review period are shown in the table below.

Table I

TABLE II (a): Liquefied Natural Gas Monthly Production Budget Year 2008/2009 MMBtu*

Table II (b): Five Year Average Liquefied Natural Gas Production Schedule(MMBtu)*

Train 1 began operations in 1999
Train 2 began operations in 2002
Train 3 began operations in 2003
Train 4 began operations in December 2005

* MMBTU – one million British Thermal Units (measurement of energy consumption)

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