NGC, Heritage, Touchstone sign gas agreement

A new oil and gas agreement between the National Gas Company (NGC), Heritage Petroleum and Touchstone Explorations promises a boost in TT’s gas supply to existing markets.

In a joint release Monday, the three companies said the framework agreement signed will seek to develop plans and foster a strategic partnership in the sale and purchase of natural gas and natural gas liquids produced from the Ortoire Block, onshore South East Trinidad. These blocks are operated by Calgary, Canada-based Touchstone in a joint venture operation via a production sharing contract with Heritage.

In the release NGC said the agreement signalled the first commercial gas production from onshore fields in nearly two decades.

President Mark Loquan said, “NGC has been aggressively pursuing new sources of gas as part of our growth strategy, and this development adds another measure of stability to supply from a promising new prospect.” Touchstone CEO Paul Baay added that the agreement is an exciting opportunity for the company, a small-scale marginal producer, to partner with two prominent TT organisations to fully develop its existing and future natural gas discoveries in Ortoire. "NGC brings the vast understanding of gas infrastructure to the project and Heritage brings technical knowledge to support the Touchstone team," he said.

Heritage and Touchstone have already made gas discoveries in two wells – Coho and Cascadura on the Ortoire Onshore Block.

The Coho-1 well is a natural gas discovery, and initial production rates are expected to be 10 million to 12 million standard cubic feet of gas per day. Additional work is under way to bring the well on stream by mid-2020. The release also noted that the Cascadura-1ST1 well was confirmed to be a significant liquids-rich gas discovery and exploration work continues with two prospects still to be drilled.

CEO of Heritage Arlene Chow also noted that developments from the Ortoire Block are important to the near and medium-term growth strategy in TT and to our commitment to help secure the country’s energy future and the creation of sustainable jobs.

NGC said the next move will be to conclude the detailed gas supply agreement terms and the development of the Coho and Cascadura fields.