NGC Group remains profitable for 2022

The NGC Group has announced a profit of $2.38 billion, maintaining a position of profitability for the year ended 31 December 2022.

According to its 2022 summary consolidated financial statements, the solid performance was 5.2 per cent lower than the $2.51 billion after-tax profit recorded in 2021.

In a release on Monday, NGC chairman Dr Joseph Ishmael Khan said the profitability was driven by high energy commodity prices, boosted by the upward trend of market prices for ammonia and natural gas liquids (NGLs) in 2022.

He also noted that as an integrated energy company, the group was able to capture value across the natural gas value chain.

"The group’s commendable performance was also undergirded by astute guidance and steadfast support from the government, through the line minister – Energy and Energy Industries Minister Stuart Young," he said.

On the upstream side of the energy value chain, parent company NGC advanced its growth strategies through the completion of key gas supply contract negotiations, including a milestone Gas Supply Contract (GSC) with bpTT.

"The company worked collaboratively with Shell to progress the Manatee project, and a heads of agreement (HOA) was signed to commence joint modification of NGC’s Beachfield Facility, to accommodate gas from that field," the release said.

On the downstream side, NGC focused on securing a stable supply of gas to the petrochemical and manufacturing industrial sectors. Notably, a GSC was signed with local cement manufacturer CEMEX Trinidad Cement Ltd (CEMEX TCL).

"NGC continued to work alongside the government and the other shareholders in Atlantic LNG – Shell and bpTT – to further negotiations on restructuring the commercial arrangement for the LNG facility," the release said.

The subsidiaries within the group also hit key milestones for their individual strategic growth objectives, particularly for internationalisation strategies.

Phoenix Park Gas Processors Ltd (PPGPL) acquired two foreign assets in 2022 – a new NGL terminal in Hull, Texas and a propane terminal in Rush City, Minnesota, expanding the group’s presence in North American markets. While National Energy was appointed by the government to lead TT’s export promotion of energy services.

Meanwhile, NGC bolstered its energy marketing and trading portfolio through a signed agreement with Proman to take methanol cargoes from its MHTL facility in Point Lisas for international export.

NGC said its sustainability and green agenda remained high on the priority list for the group.

"In 2022, a total of 17,536 Natural Gas Vehicles (NGVs) were reportedly operating on the nation’s roads. This meant the company achieved the target set out in its founding mandate to support the introduction of 17,500 NGVs into the domestic market. Sales of CNG also increased by 25 per cent over 2021, showing strong market growth," the release said.

In terms of logistical support for downstream industries, NGC's subsidiary La Brea Industrial Development Company Ltd (LABIDCO) recorded a historic achievement by completing its first-ever ship-to-ship and ship-to-shore transshipment.

NGC also achieved the Gold Standard status of reporting for its declared commitments to reduce methane emissions by 2025.

Furthermore, to build stakeholder buy-in and public awareness around clean energy and sustainability, NGC launched the Inspire-to-Achieve (I2A) programme, aimed to open pathways for youths to pursue careers and entrepreneurship based on green and sustainable economies.

Khan said the group remains steadfast in delivering on its growth strategies beyond the achievements realised in 2022.

“The outlook is positive as the group continues to explore and leverage opportunities to grow its business, secure the long-term sustainability of the domestic industry, and support national sustainable development targets. Moving forward the group is firmly set on a path of growth, and confident that with the continued support of our line ministry, it will create value for the people of TT.”