NGC and DeNovo sign first gas sales agreement

The National Gas Company of TT Ltd (NGC) and DeNovo Energy Ltd (DeNovo) have signed a Gas Sales Agreement (GSA) for the sale of natural gas to NGC from DeNovo’s Iguana field in Block 1(a) – offshore Trinidad’s west coast.

Newsday understands the agreement was signed at NGC's offices, Pt Lisas Industrial Estate, Couva around 3.30 pm on Wednesday.

NGC, through NGC E&P Investments Ltd (NGC E&P), owns 20 per cent of Block 1(a) through a Joint Venture with DeNovo, which owns 80 per cent as the operator. The GSA was signed in anticipation of DeNovo’s delivery of natural gas later this year from the Iguana field, which is the first natural gas development to take place in the Gulf of Paria.

DeNovo told Newsday it "is proud to be the fifth gas producer in TT" – joining BPTT, BHP, EOG and Shell – and the first local upstream company to operate an offshore gas field.

This is in line with the strategic priorities of both companies to increase natural gas production for use by the local petrochemical sector, by monetising proven stranded natural gas reserves.

"This is a momentous day for us, as we work to deliver first gas from the Iguana field later this year. We are now the fifth as producer in TT, and we are very pleased to be monetising stranded natural gas reserves for use by the petrochemical sector on the Pt. Lisas Industrial Estate (Pt Lisas). Increased gas production is great news for the industry, and the people of TT."

Newsday also spoke with DeNovo founder and CEO Joel Pemberton, who said the company "was founded with a mission to use local talent to build a TT company to monetise our country’s stranded natural gas reserves safely and quickly, at a globally competitive price."

Noting that the capital required for such a company is significant and international funding is "essential for the development of these reserves," Pemberton noted that it was thanks to "a significant investment" from Proman – a global leader in natural gas derived products and services – that "the DeNovo vision was given life."

In a joint release issued shortly after the signing, NGC president Mark Loquan said the announcement came at the right moment, as the GSA "will enhance our current natural gas supply to the Pt. Lisas. It a significant step for the local energy industry and an opportunity for working with a new, local gas producer with the financial strength, technical capability, and agility to monetise these reserves in short order."

NGC is committed to partnering with upstream players such as DeNovo to maintain the global competitiveness of TT's petrochemical producers and tha this agreement "represents the continued attractiveness of TT’s energy industry to global investors," Loquan said.

NGC and DeNovo also said they "acknowledge and thank Petrotrin for the preliminary work done as the initial joint venture partner with DeNovo on the project."