Global Energy Industry Leaders attend the opening day of the T&T Energy Conference in Port of Spain, Trinidad and Tobago, February 10, 2025.

Trinidad and Tobago, the largest producer of liquefied natural gas in Latin America and the Caribbean, is seeing an increase in government revenue from LNG exports by selling cargoes at between 15% and 55% above Henry Hub prices, energy minister Stuart Young said on Monday. 

The increase follows a contract revamp in late 2023 that set new financial terms for participants in the country's flagship project, Atlantic LNG, after five years of negotiations aimed at securing more revenue and recovering export volumes.

Before the revamp, LNG producers in Trinidad were barely reaching prices close to the Henry Hub for cargoes sold to customers in Europe, Asia and South America.

The country is pressing producers, especially offshore, to deliver first output from new projects to increase gas supply to the Atlantic LNG. One of the facility's liquefaction trains has remained idled in recent years due to a lack of gas.

Among key gas projects off the country's coast are Shell's (SHEL.L), opens new tab Manatee and BP's (BP.L), opens new tab Cypre, expected to deliver up to 1 billion cubic feet of natural gas by 2028, Young added during Trinidad and Tobago's Energy Conference in Port of Spain.

In another effort to secure future output, Trinidad last month launched its largest-ever auction for deepwater oil and gas exploration and production areas.

Trinidad's government also hopes the incoming administration of Donald Trump preserves two key U.S. licenses for joint projects with Venezuela that are expected to supply gas for LNG production and exports from the Caribbean nation, Prime Minister Keith Rowley said at the conference.

Larger revenue from LNG exports could help offset an expected hit to sales of ammonia and methanol from the Caribbean country as many European countries continue imposing carbon taxes on imports of petrochemical products.

In an effort to reduce carbon emissions, more than 20 European countries have implemented carbon taxes, mostly since 2023.

The European Union is pursuing a decarbonization strategy that no-one else in the world is doing, the CEO of petrochemical producer Proman AG, David Cassidy, said at the conference.