Wednesday, November 30, 2022

Trinidad & Tobago signs milestone gas supply contract with bpTT

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The National Gas Company of Trinidad and Tobago Limited (NGC) said on Friday that it signed a “milestone” gas supply contract with energy major, bp Trinidad and Tobago (bpTT), to ensure future domestic gas supply for the upcoming years.

NGC’s President Mark Loquan and bpTT’s President Claire Fitzpatrick, signed the contract at Hyatt Regency in the presence of incoming bpTT President, David Campbell, and Minister of Energy and Energy Industries, 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.

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Importantly, bpTT is the largest supplier of gas to the domestic market. The renewal of this contract allows NGC to secure a significant volume of gas for the coming years.

While neither Mr. Loquan nor Mrs. Fitzpatrick disclosed details of the contract, as these are governed by a confidentiality agreement, they acknowledged the timeliness of the signing and the resounding commitment of both parties to the success of Trinidad and Tobago’s energy sector.

Expounding further, Loquan in his remarks said the contractual negotiations for future gas supply began in earnest several months ago. The spirit of the negotiation process, according to the NGC President, was respectful, mature, productive, and professional always, with both teams working assiduously to put the contract in place given its criticality to help drive upstream investments.

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Loquan was keen to note that the upcoming period will continue to be challenging for the Trinidad & Tobago energy sector even with this contract in place. He said this is due to the continued decline of existing upstream gas fields, and other upstream investments which did not perform as planned. He said energy efficiency, particularly gas utilised for power continues to be a critical focus for NGC.

As for Ms. Claire Fitzpatrick, she said the contract 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 also 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.

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With respect to Minister Young, he agreed that the renewed contract represents a critical milestone in securing the future of Trinidad and Tobago’s energy sector and ensuring energy security. He said, “NGC has stayed the course and it cannot be overemphasized 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.”

Minister Young also said that the signing of the contract signals that there is significant value to be extracted from the country’s hydrocarbon resources for the benefit of all citizens. He said the Government of Trinidad and Tobago will continue to work closely with all stakeholders toward building the resilience and sustainability of the nation’s energy sector, which remains the bedrock of the nation’s economy.

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