Tobago Gas ordered to pay $3.7m

TOBAGO-based Tobago Gas Trading and Logistics Limited, which obtained approval from the State to construct an LPG terminal at the Point Lisas Industrial Estate, has been ordered to pay $3.7 million dollars to one of its suppliers.

The San Fernando-based supplier of industrial equipment, G. Singh Marketing Ltd (GSM), filed a claim for payment of building material and commodities delivered to Tobago Gas but the latter failed to defend it and judgment was delivered in default, ordering it to pay the $3.7 million, which includes interest, owed.

In its claim, GSM, which was represented by attorney Abdel Mohammed, argued that it supplied the material and commodities to Tobago Gas for construction of the LPG import terminal at the Point Lisas Estate.

The project was expected to create a “virtual” trans-shipment hub to supply and deliver LPG, or cooking gas, to Tobago, using a modern method known as a virtual pipeline. The concept was created to distribute LPG to places where it was physically or economically unfeasible. GSM claimed the supplies were provided on credit to Tobago Gas after the company provided copies of approvals from the Ministry of Works and Transport Maritime Division, the Ministry of Energy and Export TT.Invoices were presented to Tobago Gas, and despite assurances from the company, it failed to pay for the material delivered to its site at Point Lisas between January-February of this year.

Tobago Gas also failed to respond to a pre-action protocol letter sent in April.

Work of the terminal has been halted and GSM said they have received no indication from Tobago Gas when the money owed for the materials would be paid.