Media Release: NGC and CNC sign Gas Sales Agreement

Media Release

NGC and CNC sign Gas Sales Agreement

Apr 2nd, 2018
The National Gas Company of Trinidad and Tobago Limited (NGC) and Caribbean Nitrogen Company Limited (CNC) wish to announce that a new gas sales agreement has been signed,
which will allow the resumption of gas to the CNC Plant.

The parties have resolved all outstanding issues and reached agreement on the key commercial terms of a new gas sales contract, that are beneficial to both parties and to Trinidad and Tobago.

Further to our previous joint release we would again like to thank the Honourable Minister of Energy and Energy Industries Franklin Khan and the Honourable Minister in the Office of the Prime Minister Stuart Young for their respective roles in helping to bring these negotiations to a successful conclusion.

The parties look forward to working cooperatively in the best interest of all stakeholders and that of Trinidad and Tobago.

Photo 01 – In photo at NGC and CNC signing are from left to right:
Edmund Subryan, Vice President, Legal & Corporate Affairs, NGC; Verlier Quan Vie, VP, Commercial, NGC; NGC Chairman Gerry C. Brooks; Jerome Dookie, CEO CNC; David Inglefield, Consultant, CNC.
Photo 02 – NGC President, Mark Loquan

Media Statement: NGC and CNC Gas Sales Agreement Imminent

14th March, 2018
The National Gas Company of Trinidad and Tobago Limited (NGC) and Caribbean Nitrogen Company Limited (CNC) wish to announce that they have reached agreement on the key commercial terms of a gas supply agreement. The companies are in the process of formalising the required legal agreement and it is expected that this will be done imminently.

Press Article on Gas Supply Negotiations between NGC & CNC

The Daily Express newspaper article on the gas supply negotiations
between NGC and CNC:

CNC gets a blowout from Energy Ministry

Jan 26, 2018
“The Government will not be bullied by the Caribbean Nitrogen Company (CNC) to act in a manner that is detrimental to the National Gas Company (NGC).
“This is according to the Energy Ministry which has also labelled as instructive and disappointing the behaviour by CNC regarding the breakdown of commercial negotiations with NGC.”

Gov’t Encourages CNC to Negotiate with NGC

The Ministry of Energy and Energy Industries’ press release addressing
the matter of gas supply negotiations between NGC and CNC:

Press Release:

Government Encourages CNC to Negotiate with NGC

Jan 26, 2018
The Government has noted with a high level of concern the language being used by the Caribbean Nitrogen Company (CNC) in its public utterances with respect to the breakdown of commercial negotiations it was involved in with the National Gas Company (NGC).

It is no secret that there have been, and are, gas curtailment issues currently affecting our hydrocarbon industry. It is also not a secret that NGC from 2019 has to pay significantly higher prices for gas.

The behaviour of CNC which has shareholders who hold significant shareholding in other plants in Pt. Lisas is instructive and disappointing. There is no entitlement to gas supply without an agreed and executed contract. It is the Government’s understanding that NGC’s gas supply agreement with CNC expired and the parties were unable to agree pricing issues for gas supply from 2018 to 2023.

The gas supply situation and in particular, the pricing of gas has changed significantly and the Government has been, and will be, engaging upstream gas suppliers and downstream gas purchasers to address this. Whilst NGC and the Government remain committed to supplying the downstream hydrocarbon players with gas, they will not be bullied by CNC, its affiliates or anyone for that matter, to act in a manner that is detrimental to NGC and ultimately the citizens of Trinidad and Tobago.

Transfer pricing and avoidance of tax issues have long been a part of the behaviour of some in the industry and these are also issues being looked at by the Government.

In closing, the Government encourages CNC to stop its petulant and threatening behaviour and return to the table of negotiations with NGC.

Corporate Communications Unit
Ministry of Energy and Energy Industries

NGC Chairman Gerry C. Brooks responds to the CNC Shutdown

See our Video Gallery for interview with NGC Chairman, Gerry C. Brooks, highlighting NGC’s position on the CNC shutdown.

Media Release: Gas Sales Agreement, NGC / CNC Expired

Media Statement

Jan 24, 2018
NGC advises that effective Wednesday 24th January 2018, the Gas Sales Agreement between The National Gas Company of Trinidad and Tobago Limited (NGC) and Caribbean Nitrogen Company (CNC), has expired.

Regrettably, and despite NGC’s best efforts, no agreement was reached with CNC on this matter. NGC will continue to exert all reasonable efforts to try to secure a mutually-acceptable agreement. These efforts are predicated on the new reality of higher gas acquisition costs and the need for improved efficiencies across the value chain.