Trinidad, a vibrant Caribbean island, is approximately 5,000 square kilometres in size and lies just northeast of Venezuela, separated by a narrow strait less than 11 kilometres wide. Geographically, it sits within the vast Venezuela Basin, the world’s largest hydrocarbon basin, giving it a strategic advantage in the oil and gas sector.
The country’s deep-rooted history in oil and gas, coupled with robust infrastructure and a wealth of industry expertise, makes it an attractive destination for energy investments. With global energy supply consistently struggling to meet demand, Trinidad remains a valuable player in the market. This ensures that companies like Touchstone, involved in oil and gas production, continue to experience a steady demand for their output.
Historically, Trinidad has been at the forefront of the oil and gas industry. The first oil discovery was made in 1866, marking the beginning of the island’s journey in energy production. By 1908, the first commercial onshore oil production began, followed a few years later in 1912 by the establishment of the first refinery. As natural gas gained prominence, Trinidad pioneered its commercial use for electricity generation in 1953 at the Penal power station. This laid the foundation for the country’s expanding natural gas industry.
The creation of the National Gas Company of Trinidad in 1975 marked a major milestone, positioning the nation as a significant player in the transmission and sale of natural gas. Over the decades, several key developments took place that further cemented Trinidad’s reputation as a hub for energy. In 1989, the government introduced Lease Operatorship Agreements (LOAs) and farm-outs, allowing for more flexible investment structures. The early 1990s saw the launch of the Phoenix Park natural gas processing facility, while in 1996, construction of the Atlantic LNG facility commenced, a project that would become pivotal to the country’s liquefied natural gas (LNG) sector.
Further developments in the late 1990s included a US$355 million upgrade to the Point-a-Pierre refinery, boosting capacity to 160,000 barrels per day. The dawn of the new millennium witnessed the start of production at the Titan Methanol plant, the largest in the world at that time, with an impressive capacity of 1.7 million tonnes per year.
Trinidad’s success in LNG production was further solidified with the opening of Atlantic LNG’s Train 1 in 1999, followed by Trains 2 and 3 between 2002 and 2003. The crowning achievement came in 2005 with the start-up of Atlantic LNG Train 4, which became the largest LNG train in the world, boasting a capacity of 800 million cubic feet per day.
Trinidad’s well-established energy sector, supported by its extensive infrastructure, skilled workforce, and significant resources, continues to position the country as a leading destination for oil and gas ventures. With decades of expertise and consistent development in this field, it offers a stable and attractive environment for investors seeking long-term growth opportunities in the energy market.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
