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(Photo: 103FM)

Trinidad’s NGC signs sale deal with Australia’s BHP Petroleum

(Photo: 103FM)

The National Gas Company of Trinidad and Tobago Limited (NGC) last week inked a gas sales agreement with Australia-based BHP for the Ruby Field.

With the signing of the agreement, NGC and BHP have taken another step to secure gas supply by continuing to invest in upstream gas development projects.

“The signing of this gas sales agreement today with The National Gas Company reflects BHP’s continued commitment to Trinidad and Tobago and to providing a reliable source of gas to NGC. This is another demonstration of our firm’s commitment to sustainably growing our business in here,” Vincent Pereira, president of BHP Trinidad and Tobago, pointed out.

Vincent Pereira, president, BHP Trinidad and Tobago (Photo: Republic Bank)

As set out in the terms of the agreement, BHP is the operator of the block, with NGC, through its subsidiary NGC E&P (Netherlands) B.V, and Heritage Petroleum Company Limited, as partners.

In the meantime, Trinidad-based company expects the commissioning of the Ruby Field, which is located in Block 3(a), off the east coast of Trinidad, to be in the fourth quarter of 2021.

The Ruby project will comprise five development wells and one platform producing from the Ruby and Delaware fields in Block 3(a). Production from this block will tie-in to adjacent infrastructure in Block 2(c), resulting in synergies for both blocks. The Ruby project’s expected production is 16,000 barrels per day of crude oil along with 85 MMscfd of gas production.

“The signing of this gas sales agreement today with The National Gas Company reflects BHP’s continued commitment to Trinidad and Tobago and to providing a reliable source of gas to NGC.”

— President of BHP Trinidad and Tobago Vincent Pereira

Furthermore, the well in Block 2(c) has adequate supply for a large-scale ammonia or methanol plant, which would normally use between 40 to 100 MMscfd depending on the plant’s output.

“This investment output by BHP demonstrates the company’s continued confidence in our domestic energy industry, while also growing their upstream business,” a note on The Energy Chamber’s website read in part.

At the same time, the sale agreement provides NGC with the opportunity to further diversify by growing its commodity trading business.

Head office of The National Gas Company of Trinidad and Tobago, Point Lisas, Couva. (Photo: Shaun Rambaran / Forge Business Imagery)

“NGC continues in its thrust to grow our business and create value for our shareholder by integrating along the gas value chain,” President Mark Loquan explained.

“These developments are important milestones for NGC as we strive to fulfil our vision to be a recognised global leader in the development of sustainable energy-related businesses by developing strategic partnerships and creating exceptional value,” he added.