The National Gas Company (NGC) and Nitrogen (2000) Unlimited (N2000) have signed a new gas sales agreement to power the latter’s anhydrous ammonia plant in Point Lisas. While NGC, in a release yesterday, said the commercial terms of the agreement will allow for continued operation of the ammonia plant, it did not disclose the duration of the contract.
NGC and N2000 began negotiations following the conclusion of an agreement for a natural gas supply with Caribbean Nitrogen Company Ltd (CNC) in April.
CNC, N2000’s sister plant, shut down operations at the end of January after failing to resolve a contract negotiation dispute with NGC. After nearly two months of discussions, the parties finally came to an agreement.
The CNC and N2000 plants began production in 2002 and 2004 respectively.
“The parties were able to agree upon and achieve the deadline for the conclusion of negotiations. Agreement was reached on terms and conditions that were acceptable to both parties in keeping with current and prospective industry conditions,” NGC said.