NGC signs deal with Mozambique's state-owned petroleum company

The National Gas Company of TT (NGC) has signed a "landmark" Technical Services Agreement (TSA) with Mozambique's state-owned petroleum company, Empresa Nacional de HidroCarbonetos (ENH).

Signed at NGC's head office, Pt Lisas Industrial Estate, Couva on May 13, the TSA comes eight months after both companies signed a Memorandum of Understanding in September 2017.

ENH is responsible for the research, prospection, production and commercialisation of petroleum products and represents Mozambique in oil and gas operations. The TSA was executed on the first day of ENH’s three-day study-tour of TT’s energy sector from May 13-17.

NGC said because "Mozambique is at a relatively early stage of development in floating and onshore LNG, petrochemicals, estate and infrastructure development," TT – via NGC – is poised to assist with its experience and learnings in a strategic relationship for the long term.

The TSA is an entrepreneurial initiative on NGC's part, as it will create a new revenue stream for the company through monetisation of the company's intellectual expertise and experience. The agreement will also prove opportunities for future investment and partnership.

NGC said through the TSA, ENH has effectively contracted it to offer and provide technical, commercial, legal and other services for the development of Mozambique’s natural gas sector. "The TSA covers the assessment of the commercial framework across the energy value chain of the upstream, midstream (LNG and pipeline network) and domestic sectors."

The TSA also provides for local content policy formulation, institutional capacity building, infrastructure and industrial estate development.

The delegation was led by ENH chairman and CEO Dr Omar Mithá. It included advisor to the ENH board, Arsénio Mabote, ENH marketing director Acácio Langa and ENH engineering director António Matola.

During the five-day visit, the delegation met with NGC's chairman Gerry Brooks, its president Mark Loquan and key personnel to discuss how best to deepen areas of collaboration.

NGC said Mithá shared that Mozambique has an estimated 190 trillion cubic feet (tcf) of gas and is assiduously working towards developing its human resources and skills base to promote a balanced development of their gas economy.

Mithá said the desire to enhance local competence was one of the primary catalysts for ENH seeking out NGC as an ideal collaborative partner to grow and strengthen Mozambique’s energy sector.

By the end of the Mozambique visit, it was agreed that a joint steering committee (JSC) would be established to "diligently pursue" several definitive potential projects identified by both parties.

Speaking at the May 13 signing, Brooks said the agreement supports the company's strategic objective of expanding the NGC Group to international jurisdictions.

"As we seek to transform our business and the energy sector, we must look at diversifying NGC’s business and revenue streams beyond our shores by forging partnerships of mutual benefit. Our collaboration with Mozambique signals that NGC remains firm in our commitment to creating value and generating tangible returns for the development of TT and its people," Brooks said.

Emphasising NGC's capabilities and inherent expertise – built over more than 40 years – Loquan assured the ENH representatives that through the TSA and MOU, they were accessing an unparalleled wealth of knowledge from subject matter experts.

Loquan also highlighted the integral role NGC has played in developing and optimising Trinidad’s natural gas model of growth and prosperity through maintaining its role as an aggregator and agent for national development.

The ENH group also met with key energy sector stakeholders, including Energy and Energy Industries Minister Franklin Khan, to obtain a deeper appreciation of the wider TT energy industry.

Minister Khan reaffirmed the support of the government in the development of bilateral energy relations between Mozambique and TT as well as broader south-south cooperation.

Discussions were also held with local educational institutions UWI, UTT and NESC to commence the process of collaboration on skills development required for the Mozambique oil and gas industry.