NGC and CNC gas sales agreement imminent

A NEW gas sales agreement between the National Gas Company of TT Ltd (NGC) and Caribbean Nitrogen Company Ltd (CNC) is “imminent”.

The news comes roughly seven weeks after an estimated 400 workers were affected by CNC’s January 24 shutdown of its ammonia plant in Pt Lisas. A reliable source last evening told Newsday that agreement on things such as the term sheet should be reached very soon. As such, NGC and CNC are likely to sign the new contract “by the weekend” – likely a five-year contract for the period 2018-2023.

Newsday also understands that during the time without a contract, other NGC customers at the Pt Lisas Industrial Estate, such as PCS Nitrogen Trinidad Ltd, “have been getting their full quota and happy like pappy.”

The pending signing of a new gas sales agreement between CNC and NGC was officially announced in a joint statement issued shortly after 6.30 pm on Wednesday.

However many energy stakeholders first heard about the agreement a few hours earlier, when it was announced by Prime Minister Dr Keith Rowley during his feature address at the Energy Ministry’s forum, Spotlight on Energy.

“That business exercise has virtually come to an end and NGC and CNC have agreed to a new arrangement,” Rowley said, to applause from members of audience at the event, held in the Port of Spain Ballroom of the Hyatt Regency, Port of Spain.

In their joint statement, NGC and CNC said they had “reached agreement on the key commercial terms of a gas supply agreement.”