NGC, bpTT sign new gas supply contract
THREE days before the 2023 national budget, the National Gas Company of Trinidad and Tobago (NGC) signed a gas supply contract with energy major, bp Trinidad and Tobago (bpTT).
In a news release, NGC described the contract as a milestone, as it secures a future domestic gas supply for T&T for the upcoming years. Neither the term of the contract nor the minimum supply contracted were disclosed in the NGC news release.
NGC said its president, Mark Loquan, and bpTT's president Claire Fitzpatrick, signed the gas supply contract at Hyatt Regency on yesterday. Also present to witness the signing were incoming bpTT president David Campbell and Minister of Energy, Stuart Young.
The signed contract is a renewal of the existing NGC/bpTT arrangement, and will govern the terms and conditions under which bpTT will continue to supply gas to NGC's domestic customers.
Loquan said the contractual negotiations for future gas supply began in earnest several months ago, and that the signing represented a continued collaborative relationship between the two companies.
The spirit of the negotiation process, according to the NGC president, was respectful, mature, productive and professional at all times, with both teams working assiduously to put this contract in place given its criticality to help drive upstream investments.
Fitzpatrick underscored the importance of the renewal of the contract to bpTT, stating that it will underpin future upstream investment decisions that the company was looking forward to taking and will contribute to the continued longevity of the country's petrochemical industry.
She reinforced the important relationship that bpTT and the NGC have maintained for decades and praised the teams involved in the negotiations for their diligent and efficient work.
Loquan thanked the NGC Board, and commended all involved at NGC for their professionalism and commitment. He also thanked Fitzpatrick, for her open communication during the process and the hard work by the bpTT team involved, with tight deadlines and timeframes involved.
He noted that the upcoming period will continue to be challenging for the Trinidad & Tobago energy sector even with bpTT contract in place, due to continued decline of existing upstream gas fields, and other upstream investments which did not perform as planned.
Energy efficiency, particularly gas utilised for power, continues to be a critical focus for NGC.
BpTT is the largest supplier of gas to the domestic market and the renewal of this contract, allows NGC to secure a significant volume of gas for the coming years to help fulfil domestic demand.
While neither Loquan nor Fitzpatrick could disclose the specific details of the contract, as these are governed by a confidentiality agreements, they acknowledged the timeliness of the signing and the resounding commitment of both to the success of Trinidad and Tobago's energy sector.
Young said: '…this is another critical milestone in securing the future of Trinidad and Tobago's energy sector and ensuring our energy security. NGC has stayed the course and it cannot be over emphasised how significant it is that we have negotiated and secured a future supply of gas from bpTT in advance of the expiry of the current arrangements. I congratulate NGC on securing a contract for continued supply of natural gas for the downstream.'
He acknowledged bpTT's clear commitment to tangible investment in the upstream.
'The signing of the GSC signals that there is significant value to be extracted from the country's hydrocarbon resources for the benefit of all citizens and that bp remains committed to Trinidad and Tobago as an investment in its group of global assets.'
In a separate news release, the Ministry of Energy quoted Young as saying the sanctioning of this future gas supply was part of the discussions that took place at the bp headquarters in London on September 15.
The gas governed by the new contract will be utilised for the downstream petrochemical sector and electricity production.
The Ministry of Energy said the Government of the Republic of Trinidad and Tobago welcomed this crucial future supply of gas which is a clear and tangible indicator of bp's continued commitment to this country.
COLLABORATION: NGC president Mark Loquan, second from left, congratulates bpTT president (outgoing) Claire Fitzpatrick on the signing of a new gas supply contract between the two companies yesterday at the Hyatt Regency in Port of Spain. Minister of Energy Stuart Young, left, and incoming bpTT president David Campbell observe the agreement.
