NGC signs blue methanol deal

THE National Gas Company of Trinidad and Tobago Ltd (NGC) will soon be able to purchase blue methanol, a low-carbon petrochemical commodity for trading, following a purchase and sales agreement.

NGC Petrochemicals Ltd (NPL), a subsidiary of NGC, has completed negotiations with Gulf Coast Methanol 1, LLC and its parent IGP Methanol LLC of the USA, for a purchase and sales agreement that will allow NGC to acquire blue methanol from IGP's Gulf Coast methanol project.

In a news release yesterday, NGC said this milestone marks the culmination of several months of collaboration, following the announcement of a term sheet signed by the parties in December 2021.

It noted that the inclusion of blue methanol in its portfolio bolsters NGC's reputation as an emerging player in the global clean energy space, and regional leader in championing the Green Agenda and sustainability.

It represents the latest in a suite of initiatives being pursued by NGC and the wider NGC Group to pursue a carbon-neutral future for Trinidad and Tobago, the release added.

NGC outlined that the blue methanol will come from IGP Methanol's first world-scale blue methanol plant in Louisiana, which is being developed to supply the rapidly growing and unmet global demand for ultra- low-carbon methanol.

'The first plant is expected to come on stream in 2026. The plant will adopt the Topsoe SynCor Blue Methanol technology, which uses hydrogen to power its process. This significantly reduces the amount of CO2 emitted from methanol processing,' the release further explained.

Additionally, the plant's produced carbon dioxide will be removed and directed either to sequestration or for re-use by carbon tech companies located adjacent to the plant, including the plan to recycle the CO2 into renewable green methanol.

Chairman of IGP Methanol James S Lamoureaux, said 'this partnership validates their vision of delivering ultra-low carbon and renewable, hydrogen- based energy to major companies around the world to help them meet their carbon goals'.

Speaking on the significance of this purchase and sales agreement, NGC president Mark Loquan said the company is following global markets closely, and see the enormous potential value to be tapped in the area of blue and green energy commodity trading.

'This partnership with IGP Methanol gives us a unique opportunity to expand our foothold commercially-as we enter new energy marketsand geographically, as we further grow our trading network beyond the shores of Trinidad and Tobago,' Loquan added.

NGC PRESIDENT: Mark Loquan