THE Energy Chamber of Trinidad and Tobago is congratulating the state-owned NGC Group on returning to a profitable position, saying the company plays a critical role in the energy sector.
The Energy Chamber said the NGC Group also serves as a model state agency here and that the company has been focused on monetising the natural gas resources of the country.
The NGC Group has recorded a profit after tax of TT$1.6 billion for the financial year ended 31 December 2024, recovering from a loss-making position at the end of 2023 when the company reported a loss of TT$1.3 billion, which was principally as a result of impairment charges of TT$1.8 billion.
The 2024 profit represents an improvement of TT$2.9 billion from last year and in his report, recently appointed chairman, Gerald Ramdeen, has indicated that the NGC is severely challenged in its cash management by the non-payment of T&TEC receivables, which stands at TT$6.3 billion and is estimated to grow by TT$1.2 billion per year if not urgently addressed. The closure of the Niquan Plant also adversely impacted the receivables by a further TT$145 million.
The report also identified that several major upstream and downstream contracts are due to expire in December 2025 and that this pose a challenge in a tight gas environment with rising costs.
One of the major activities for the NGC last year, was the restructuring of Atlantic Trains 2 and 3 that became effective in October 2024 with the NGC being able to ship its first liquified natural gas (LNG) cargo from Atlantic LNG Trains 2 and 3.
According to the report, the NGC has been actively pursuing opportunities in the upstream to strengthen its position as the sole domestic downstream gas aggregator.
These include the acquisition of a 20 per cent participating interest as a state entity in each of the Charuma, Cipero and Rio Claro onshore blocks. NGC also acquired a 2 per cent participating interest, along with the operator, BP with 80 per cent interest, in the Cocuina Exploration and Production License. This is now dependent upon the renewal of the US-based Office of Foreign Assets Control (OFAC) license.
The NGC has suspended work on these E&P Licenses and the report notes that the “NGC will continue to support any initiatives aimed at allowing our country, through the company, to benefit from the exploration of these fields, which are strategic to the future of the energy sector in our country”.
In addition, the final investment decision (FID) was taken on the Beachfield Manatee Upgrade Project in 2024, which is required to process Shell’s Manatee gas production to both the domestic and LNG markets.
Shell plans to bring production online by 2027, a portion of which will be allocated to the domestic market. These acquisitions will position the company to benefit from the strategic growth in future upstream and mid-stream developments.
Ramdeen said that natural gas remains critical in meeting the local energy needs and growing global energy demand while supporting the transition to cleaner sources. (CMC)
