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DeNovo and NGC sign gas sales contract for commercialisation of Zandolie Field

DeNovo Energy Limited (DeNovo) and the National Gas Company of Trinidad and Tobago (NGC) today announced the signing of the Zandolie Field development Gas Sales Contract (GSC) for commercialisation of the Zandolie Field located in Block 1(a).

The Zandolie Field Development project will be DeNovo’s second offshore instalment following the Iguana field development in the same Block 1(a) which was the first west coast natural gas field to be developed in Trinidad and Tobago.

DeNovo will invest USD 52 MM on the Zandolie development which is expected to deliver approximately 40 million standard cubic feet of gas per day (MMSCFD). On the current project schedule, production is projected to begin within the first half of 2022.

NGC has been working collaboratively and earnestly with both the upstream and downstream sectors to ensure alignment of supply and demand for the medium to long-term. This has included a keen focus on opportunities to monetise small and marginal fields.

The Zandolie design plan includes a connecting pipeline to the Iguana Platform which will enable the new field to utilise spare processing capacity at Iguana.  The strategy of utilising the Iguana platform as a hub not only reduces project costs, but also provides proof of concept for the vision of the Iguana platform serving as a hub for natural gas developments in the Gulf of Paria.

Detailed Design engineering is ongoing for the Zandolie Platform which is planned to be an Unmanned Minimum Facility and is projected to be lighter and smaller than Iguana. Aligned to DeNovo’s higher local content intention, the platform will be fabricated locally in Trinidad and Tobago and a local rig will be utilised for installation of the platform as well as drilling and completion.

DeNovo’s Managing Director, Bryan Ramsumair, remarked: “At DeNovo, we are intent on developing safe, innovative and cost-effective initiatives consistent with our prime objective of increasing gas supply to the Trinidad and Tobago Petrochemical sector, particularly from formerly stranded gas fields. The signing of our Zandolie GSC demonstrates the sustainability of the DeNovo model and keeps us on schedule to deliver, first gas into the system next year.” Specific to local content, he further stated, “As we demonstrated with our first field development of Iguana, we are committed to maximising the use of local expertise for this project and we look forward to enhancing local collaboration through in-country engineering, fabrication and drilling. In support of the carbon agenda, Zandolie will utilise100% green power generation powered by both wind and solar energy.”

Mark Loquan, NGC President, commented, “This gas sales contract will enhance our current natural gas supply and is a notable step for the local energy industry. This signing is framed against a background of the strategic priorities of both companies to increase natural gas production through the monetisation of proven stranded natural gas reserves. NGC is committed to partnering with upstream producers to maintain the global competitiveness of our petrochemical producers, and indeed, the sustainability and the continued attractiveness of Trinidad and Tobago’s energy industry to current and potential global investors.”

In expressing his commitment to the Trinidad and Tobago energy industry, Claus Cronberger, Managing Director Proman Trinidad and Tobago and Chairman of DeNovo, stated, “Today’s announcement is further validation of DeNovo’s pioneering model for developing and monetising stranded gas fields, which Proman proudly supports as part of our commitment to driving innovation and broadening the energy mix for Trinidad and Tobago’s vital energy industries.” Claus Cronberger added, “The collaboration between DeNovo’s Operations, Engineering and Construction teams as well as local services and contractor partners to fabricate, engineer and install this platform is testament to the wealth of home-grown talent in this country. We look forward to working with the Ministry of Energy and Energy Industries, NGC and other partners to get this exciting project underway.”