BP Amoco signs much-delayed $1.1 billion deal to expand Trinidad gas plant

by The Associated Press

BP Amoco signed a much-delayed $1.1 billion deal with Trinidad’s government March 13 that would triple the output of a liquefied natural gas plant run by a multinational consortium.

The agreement allows Atlantic LNG to add two plants to one that began production in June, Trinidad’s Ministry of Energy said.

The expansion would boost production and exports of liquefied gas from 3 million to 9 million tons a year by 2003, the ministry said in statement.

Negotiations had been delayed for months because of complaints by the state-owned National Gas Co. that BP Amoco was selling it raw natural gas at too high a price, making the price of domestic natural gas used by industries uncompetitive.

An agreement has been reached for BP Amoco to reduce the price it gives the gas company from an average of $1.03 to 91 cents for 1 million cubic feet.

Atlantic LNG is run by a consortium that includes Amoco Trinidad, British Gas Trinidad, Repsol of Spain, Cabot LNG of Boston and Trinidad’s gas company.