The National Gas Co (NGC) has given its commitment to maintain gas supplies to customers, even as one of its clients Yara Trinidad announced the closure of one of its three ammonia plants.
Among the reasons Yara gave in a statement on Wednesday was the "failed" negotiations to reach an agreement with NGC that would have sustained the plant's operations.
NGC in a later release said it had noted Yara's decision, adding the Yara plant contributed five per cent to ammonia production. Yara has said the plant's annual output is 270,000 tonnes of ammonia.
NGC said it too has felt the effects of the volatile and challenging environment in the local and global energy industries.
"NGC has used its best efforts to mitigate the effects of these challenges on its valued customers on the Pt Lisas Industrial Estate," said the state-owned company.
"As the aggregator to the domestic petrochemical industry, NGC shall continue to work assiduously and balance its existing gas supply in accordance with its contractual obligations and in the best interest of its customers, the sector and the people of TT."
Reporting on the closure of the Yara plant, which is to be completed by December 31, Globalnewswire said the process is expected to cost US$25 million which will be classified as a special item in Yara’s fourth-quarter 2019 results, adding that the book value of the plant is zero, "following several historical asset impairments."
The Yara plant if fully owned by Yara International ASA and it is the smallest of the Norwegian group's three ammonia plants in Trinidad. The other two --- Tringen I and Tringen II --- are jointly owned with National Enterprises Ltd --- TT's investment holding company.