NGC: Talks with Methanol Holdings on gas supply ongoing

National Gas Company head office in Pt Lisas. -
National Gas Company head office in Pt Lisas. -

THE National Gas Company (NGC) on Saturday said it is continuing negotiations for a gas supply agreement with Methanol Holdings (Trinidad) Ltd (MHTL). Failure between NGC and MHTL to reach an agreement last Thursday, resulted in the latter taking the decision to idle its M4 and M5plants at the Pt Lisas Industrial Estate.

In response to questions from Newsday, NGC officials said, "The parties are in negotiation with a lot of volatility in the market in the midst of a global pandemic." They continued, "Some plants like Nutrien which made announcements are back in operation."

Referring to a statement the company issued last Thursday, NGC officials explained, "Contractual discussions are subject to the strictest confidentiality and NGC is precluded from making further statements."

In its statement last week, NGC said one of its gas sales contracts with MHTL expired. "Regrettably, and despite NGC’s best efforts, no agreement was reached with MHTL on the terms for the continued supply of gas." The company pledged to "continue to exert all reasonable efforts to try to secure a mutually acceptable agreement with MHTL."

NGC added it will also "continue to honour its contractual obligations for the supply of gas to MHTL under its other gas sales contract."

MHTL, a subsidiary of the Switzerland-based Proman group, in an internal memo has said the gas prices proposed by NGC were too high.

However, NGC, saying it continues to work with stakeholders across the gas value chain to protect business interests in the current environment, stated, "The Government and NGC are mandated to act in the best commercial and financial interests of the people of TT. Therefore, all actions by the company shall be consistent with this mandate."

The petrochemical plants which are currently down are Titan (March 2020), Yara (December 2019), MTHL M1 (2016), MHTL M4 and M5 (April).

The plants which are operational are MHTL M2 and M3; Methanex Atlas; five Nutrien plants; two Tringen plants; Caribbean Nitrogen Company (CNC); Nitrogen 2000 Unlimited (N2000); Pt Lisas Nitrogen Ltd (PLNL); the ammonia, urea ammonium nitrate, melamine (AUM) complex; Nu-Iron and Caribbean Gas Chemical Ltd.

NGC also supplies gas for a gas turbine generator unit at Tringen. Officials added that this unit is operational.

Former energy minister Kevin Ramnarine, Couva/Point Lisas Chamber president Ramchand Rajbal and Pointe-a-Pierre MP David Lee all criticised the inability of NGC and MHTL to reach agreement for gas supplies to the M4 and M5 plants.

Comments

"NGC: Talks with Methanol Holdings on gas supply ongoing"

More in this section