Young: Government will seek gas payments from NiQuan

ENERGY Minister Stuart Young on May 13 told the House of Representatives that the Government will pursue payment of monies owed to the State-run Upstream Downstream Company by NiQuan which is now subject to possible wind-up petitions.

NiQuan was a private venture to try to revitalise the defunct State-run World GTI project to convert natural gas into synthetic petroleum.

Pointe-a-Pierre MP David Lee asked that given reports of possible wind-up petitions against NiQuan Energy Trinidad Ltd, would the minister advise on the Government’s efforts to recover the monies owed by NiQuan Energy to state company TT Upstream Downstream Energy Operations Company Ltd?

Young replied, "The TT Upstream Downstream Energy Operations Company Ltd, in accordance with provisions under its gas supply contract with NiQuan Energy Trinidad Limited (NiQuan) terminated the said contract in August 2023 due to non-payment of invoices. Over US$21 million was owed by NiQuan at that time.

"In addition, TT Upstream Downstream is currently not actively involved in any wind-up petitions against NiQuan Energy Trinidad Ltd. Proceedings against NiQuan remain sub judice.

"Finally, the Government is seeking legal advice to pursue the recovery of all monies owed by NiQuan Energy to TT Upstream Downstream and/or the Government."

Replying to a supplemental question from Lee, Young said this was the first Government to insist on control of the "minister's share" of gas produced in a production-sharing agreement which previously had simply been contracted it to upstream producers, so now the Government itself could market it.

"So the gas that was being used by TT Upstream Downstream to be supplied to NiQuan was already 'contracted gas' and this is why they have run up this bill.

"And fortunately TT Upstream Downstream took a decision to protect the taxpayers, the shareholders, by terminating the contract and will be pursuing NiQuan for that amount."