Atlantic LNG said last week that it has not been approached by the government of Trinidad and Tobago to discuss any changes to its existing liquefied natural gas (LNG) contracts, despite claims earlier in the week by Trinidad Energy Minister Eric Williams that the company has not been passing along profits garnered from shifting LNG shipments to the premium U.S. market from Spain.

“We are about to seek to close that loophole, a substantial loophole; that is why we wish to reopen contracts,” Williams said.

But in a statement released on Wednesday, Atlantic LNG said the government in drawing up the various contracts for trains 1-3 “agreed to arrangements that ensured a diversified portfolio of markets as well as contractual flexibility to access the premium markets. The U.S. and Spanish markets have experienced differential fortunes and the terms of these contracts are flexible enough to allow access to premium markets with some of the value flowing back to Trinidad and Tobago.

“The partners of Atlantic LNG have consistently operated within the terms of these contractual arrangements and Atlantic LNG correctly reports on all of its revenues,” the company said.

Atlantic LNG’s three processing trains have a total capacity of nearly 11 tons per year. A fourth train is expected to be operational by the first quarter of 2006. It will increase the production capacity to more than 16.5 tons a year. Atlantic LNG, which was formed in July 1995 to develop the LNG plant in Point Fortin, is owned by BP, BG Group, Repsol, Tractebel and the National Gas Co. of Trinidad and Tobago.

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