Wednesday 19 September, 2018

NGC, DeNovo sign first gas sales agreement

The Natural Gas Company of Trinidad and Tobago Limited (NGC) and DeNovo Energy Limited (DeNovo) have signed a Gas Sales Agreement (GSA) for the sale of natural gas from DeNovo’s Block I (a) asset to the NGC.

The announcement of the signing between the two companies came on Wednesday.

This is Trinidad and Tobago’s first west coast natural gas development, located in the Iguana field in the Gulf of Paria.

NGC, through NGC Exploration and Production Investments Limited (NGC E&P), owns 20 percent of Block I (a) through a Joint Venture with DeNovo, who owns 80 percent, as the operator.

The agreement introduces DeNovo as a new player into the upstream, making it the fifth gas producer in the country.

The agreement is in alignment with the strategic priorities of both companies who wish to increase natural gas production for use by the petrochemical sector in Trinidad and Tobago, by monetising proven natural gas reserves.

President of the NGC, Mark Loquan was spleased with the timing of the announcement. 

“This announcement comes at the right moment, as this GSA will enhance our current natural gas supply to the Point Lisas Industrial Estate. It is significant for the local energy industry, and an opportunity for working with a new, local gas producer with the financial strength, technical capacity, and agility to monetise these reserves in short order.”

DeNovo’s CEO, Joel Pemberton also lauded the collaboration between the two companies. 

“This is the perfect example of private industry and state collaboration, enabling an innovative resolution to the ongoing challenge to fulfill the natural gas demand of the country.”

He explained further that, “DeNovo is the first local upstream company to operate an offshore gas field, using the best local expertise with relevant local partnerships in the development of our country’s natural gas resources.

In a media release, both companies acknowledged and thanked the Petroleum Company of Trinidad and Tobago (PETROTRIN) for the preliminary work done as the initial joint venture partner with DeNovo on the project.