Present Day NGC

NGC history and national economic development.

NGC on the other hand has been continuing to fulfill its mandate of developing the gas-based industry.  It has refocused its energies as the sole transporter and merchant of natural gas.  In 2004, NGC transported and sold over 1.3 Bcf (excluding gas transported for LNG) to over 30 heavy consumers and over 100 small manufacturers.  Today the share of natural gas in the total industrial energy demand in Trinidad and Tobago is now in excess of 90 percent, and additional growth is anticipated in the future.

The Cross-Island Pipeline Project (CIPP) and Beachfield Upstream Development Project (BUD) involve the construction of 56-inch and 36-inch-diameter lines on land and in the marine environments respectively, which on completion will increase the network by 143 km to 767 km, as well as increase capacity to 2.4 Bcf/d.  These two projects are projected to be completed and commissioned at the end of 2005.

NGC’s other roles include its participation and management of strategic investments upstream.  In 2005, NGC exercised the option of acquiring a 15% interest in the BP Teak, Samaan and Poui (TSP) offshore assets.  The opportunity arose when bpTT decided to sell these offshore assets.  However, in agreeing to the sale, the Government stipulated that a 15% interest must be reserved for the Government, or its designated agency or representative.   NGC’s relationship in the field operations in TSP provided the company with the added zeal of expanding its investments in the upstream business, and in particular the TSP itself.

After being satisfied that the assets were commercially viable and that the assets had reserves of 60 million barrels of crude oil and 600 Bcf of gas, the decision was taken in July 2005 to go ahead with the investment. With the basic purchase price being US$229M, NGC will be expected to pay 15%. NGC expects that this investment in upstream developments will provide benefits and synergies for the Company’s offshore operations and strengthen the Company’s portfolio of investments.

While not NGC’s first venture upstream, the development has led to the creation of a new subsidiary company – NGC E&P Investments Limited – which will hold all of NGC’s upstream assets, which comprise a 10% shareholding in the South East Coast Consortium (SECC), 20% shareholding in Trintomar and, now, the 15% interest in TSP.

It is to be noted too that NGC’s substantial holdings include investments:

  • Subsidiary company – NGC NGL – a 51% shareholding in PPGPL
  • Subsidiary company – NGC LNG – a 10% shareholding in Train 1 and 11.1 % in Train 4.

It is therefore not surprising that based on the substantial investee income from these ventures that NGC would continue to seek investments, which increase its profitability and widen the opportunities of reaping the best value of natural gas for the benefit of the citizens of Trinidad and Tobago.

A global company aspiration

To meet this growth a new Vision Statement to be a valued partner in the global energy business and Mission Statement to create exceptional national value from natural gas and energy businesses was developed in 2009. NGC was therefore looking outwards and aligning its growth strategies with these aspirations to expand domestic production at home while exploiting new opportunities in external markets, in particular in the new petroleum economies in Africa and Latin America.

NGC engaged itself however in major expansion projects in anticipation of continued industrial growth in the domestic arena while pursuing opportunities with prospective investors who were attracted to NGC’s Trinidad Gas Model of Development and the Point Lisas success story.

Expansion projects included the construction of the NEO marine line, a Tobago pipeline, a liquid fuels pipeline and a Union Industrial Estate pipeline.  In addition, NGC’s subsidiary, NEC, continued with the development of new industrial sites and port facilities in support of the continued expansion of Trinidad and Tobago’s petrochemical sector.

So as it had done many times before the NGC group was in construction mode to increase the capacity of its transmission pipeline network, on land and offshore, and therefore meet increased customer demand from new plants earmarked to come on stream, as well as for further volumes that will be demanded in the future.

Financial perspectives

NGC is described as a strategic investment that stayed the course and is a local success story.  In 1975, it is hard to understand that NGC started business life with very marginal profits of TT$19,000.00.  However after strength to strength, and many challenges, both from within and out, in 2011, NGC’s profit is TT$6.4billion and gas sales have risen to TT$ 19billion which is a horrendous increase from the revenue of TT$180,000 recorded in 1976.  These  fantastic figures create a sense of pride for the company and country.

As of August 22nd, 2012, after 37 years in business, NGC’s assets are TT$34 billion, comprising capital investments in extensive gas pipelines, two offshore compression platforms, industrial sites at Brighton/La Brea and at Union/La Brea, as well as port and marine infrastructure at Port Point Lisas and Brighton.

In addition NGC is an investment grade company, with outstanding historical financial performance as its lasting legacy.  With a diversified portfolio it has been able to self fund a number of major capital projects and remain consistently profitable even in periods of weak commodity prices.

NGC’s credit ratings are:

  • Standard & Poor: BBB+
  • Moody’s: Baa3
  • CariCris: AA+

Returns

Over the years, NGC has also provided in excess of TT$6 billion in taxes to the treasury, and, since 1992, over TT$4 billion in dividend payments to the Government of Trinidad and Tobago.   NGC’s value maximization has therefore been contributing to the overall macroeconomic development of the country, as well as sharing the benefits of natural gas to the citizens of Trinidad and Tobago.

Community Relations

NGC’s commitment to excellence has transcended profitability and returns on investments.  Over the last fifteen years, NGC has pledged to return a portion of its profits to promote national development through a Community Relations Programme.  Starting at first as a reactive process, in which donations via deeds of covenant were given to worthy groups throughout the country, it is today a full-fledged programme with youth/cultural development, corporate giving and socio economic components. NGC has been making substantial financial and technical contributions to assist in the development of the wider community as well as to site and pipeline communities that adjoin its operations.

In the 1990s, the NGC Community Relations Programme focused on four special projects:

  • The Marine Environmental Awareness Programme (MEAP), which comprised the Coastal Villages Educational Project that exposed coastal residents to practical marine livelihood and survival skills training and Youth Sail .
  • The NGC Community Basketball League which included the Construction/Refurbishment of Basketball Courts and other Community Sporting Facilities across the country.
  • Sponsorship of Lydian Singers

Other Activities/Charitable Donations/Corporate Giving

Since 2000, to the present day, NGC’s Community Relations is multifaceted comprising five pillars of Corporate Social Responsibility comprising:

  • Community Economic Development,
  • Community Engagement,
  • Youth Development,
  • Reforestation and
  • Contributions and Sponsorships

In 2012, in its 37th year of operations, NGC had indeed gone full circle at least three times in its history so as to meet shareholder expectations for the company and the industry.  In 2012, NGC was 37 in the 50th year of our country’s independence.

Some of the activities which NGC supported and contributed included:

  • Internal staff celebrations for the 50th Impendence and 37th Anniversary
  • Press, Television and Radio Anniversary Campaign Ads
  • The inaugural SteelFesTT
  • NGC Bocas Lit Fest 2012
  • TT Village 2012
  • Trinidad and Tobago Film Festival 2012 – Community screenings of local films and documentaries
  • Commemorative Publications (use photos of Gasco, ‘Gold Book’ and ‘World Class Trinidad and Tobago’)
  • TTwenty f0r 50 Cricket Festival
  • The ‘India: A Culture of Science’ exhibition