THE National Gas Company (NGC) and Methanol Holdings (Trinidad) Ltd (MHTL) – part of the Proman Group of Companies – signed a consolidated gas supply contract (CGSC) on July 31. In a joint statement on Tuesday, NGC and MTHL said the contract brings a protracted period of negotiations, including challenges arising from the the global impact of covid19 to an end.
"This contract will support operations at the MHTL methanol complex, which includes the mega-methanol M5 plant, one of the world’s most efficient low carbon methanol producers," the companies said. "Where in the past each of MHTL’s plants was supplied under individual gas sales contracts, the CGSC is a single contract which will govern the sale of gas to the entire complex. This new approach will streamline and enhance contract administration, relationship management, logistics and planning, and give flexibility to MHTL to manage its supply in the most efficient manner."
NGC president Mark Loquan said, "Today, we strengthen our longstanding relationship with MHTL as we open an exciting new dimension of commercial partnership."
By supporting continued operations at the MHTL complex, he said, "We are securing Trinidad and Tobago’s place as a top global producer and exporter of methanol."
Loquan added, "NGC is bringing a level of stability to all the economic sectors supported by this industry while simultaneously making clear our commitment to the sustainability of the domestic energy sector and to low-carbon portfolio diversification."
MHTL managing director Jerome Dookie also welcomed the agreement. "Today’s agreement creates a period of stability that will provide immediate benefit to all parts of the gas value chain and indeed the entire national economy." He thanked the sustained efforts of NGC, MTHL's negotiation teams and the ongoing support of the Government towards reaching this agreement. Dookie reaffirmed Proman's commitment to TT.
"There is no doubt that this has been a difficult period for our industry, with long-term economic gas supply challenges exacerbated by the global market downturn caused by covid19."