TT to have first option to buy Grenada's natural gas

UPDATE:

NGC announced yesterday it has finalised a commercial agreement with Russian oil and gas company, Global Petroleum Group (GPG), which is currently undertaking exploration and appraisal activities off Grenada’s south coast.

Signed on March 19 at NGC’s head office, Couva, Newsday understands the agreement includes what’s known as a first right of refusal, which would see TT having the first option to buy Grenada’s natural gas.

This is arguably welcome news to local downstream companies, as gas demand continues to exceed current supply levels.

NGC president Mark Loquan said the agreement reasserts NGC’s “commitment to remain steadfast in its duty to enhance TT’s gas supply and work towards alleviating the current term of gas curtailment.

“NGC and GPG will continue joint studies to determine the best fit to provide natural gas-based fuel to meet Grenada’s domestic gas requirements as well as any other areas of mutual benefit relative to the energy sector in the region.”

GPG is exploring offshore Grenada near to the Patao/Dragon fields in Venezuela and North Coast Marine Area (NCMA) fields in Trinidad. “To effectively monetise any gas reserves in the fastest possible time,” NGC said it “will utilise existing domestic infrastructure as well as leverage our four decades of experience and technical proficiency in pipeline construction and natural gas transportation.”

“It is these capabilities and expertise,” NGC added, “which (we) will utilise to assist GPG in developing Grenada’s natural gas-based energy sector.” NGC noted that “the relationship” between itself and the Russian company is a result of an Energy Sector Development Framework Agreement between the governments of TT and Grenada. Describing the agreement as “a major development in the collaboration and energy cooperation among Caricom countries,” NGC also said it “is an important pillar in growing and strengthening the region’s economies.”

ORIGINAL STORY:

NGC on Friday announced it has finalised a commercial agreement with oil and gas company, Global Petroleum Group (GPG), which is currently undertaking exploration and appraisal activities off Grenada's south coast.

Newsday understands the agreement includes what's known as a first right of refusal, which would see TT having the first option to buy Grenada's natural gas.

This is arguably welcome news to local downstream energy companies, as natural gas demand continues to exceed current supply levels.

NGC explained that "the relationship" between the two companies is a result of an Energy Sector Development Framework Agreement signed between the governments of TT and Grenada.

The commercial agreement signals what NGC described as its "unwavering resolve" to meet the challenge of gas supply in TT by providing a ready market for the sale of natural gas and natural gas liquids (NGLs).

"To effectively monetise any gas reserves in the fastest possible time," NGC said it "will utilise existing domestic infrastructure as well as leverage our four decades of experience and technical proficiency in pipeline construction and natural gas transportation."