The development of shale gas, especially in the US, has raised immediate concerns for Trinidad, according to the Caribbean country’s energy minister Conrad Enill.

Enill made the announcement during the launch of the competitive bidding round for seven shallow water blocks.

“Production from unconventional gas deposits in the US has more than doubled over the past decade and unconventional resources are becoming conventional,” Robert Riley, chairman and CEO of UK major BP’s (LSE: BP) local subsidiary BPTT, said recently.

Today, however, 28% of Trinidad’s gas output goes to the US versus 78.2% in 2001, said the minister, adding that other current export markets include Spain (28%), the UK (12%), Canada (10%) and Puerto Rico (5%).

Enill also added that the government seeks to address the issue of why gas prices do not reflect the quality of the product in relation to oil.

“There is a view that since gas is a very environmentally friendly product that there should be a premium associated with it and therefore the price should be superior to oil.”

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