BROOKLYN, NY – The National Gas Company of Trinidad and Tobago Limited (NGC) Wednesday said it had signed a Consolidated Gas Supply Contract (CGSC) with Methanol Holdings (Trinidad) Limited (MHTL).
It said that the agreement with MHTL, which is part of the Proman Group, one of the world’s largest methanol producers and a leading fertilizer producer, will support operations at the MHTL Methanol Complex, which includes the mega-methanol M5 plant, one of the world’s most efficient low carbon methanol producers.
“Where in the past each of MHTL’s plants was supplied under individual gas sales contracts, the CGSC is a single contract which will govern the sale of gas to the entire complex. This new approach will streamline and enhance contract administration, relationship management, logistics, and planning, and give flexibility to MHTL to manage its supply most efficiently,” NGC said in a statement.
It said that the contract brings to a close a protracted period of negotiations, including challenges arising from the global impacts of COVID-19.
NGC President Mark Lochan said this development gives cause for optimism about the outlook for the downstream petrochemical sector and Trinidad and Tobago energy sector.
“Today, we strengthen our longstanding relationship with MHTL as we open an exciting new dimension of commercial partnership. By supporting continued operations at the MHTL Complex, we secure Trinidad and Tobago’s place as a top global producer and exporter of methanol.
“NGC is bringing a level of stability to all the economic sectors supported by this industry while simultaneously making clear our commitment to the sustainability of the domestic energy sector and low-carbon portfolio diversification,” he said, adding “my profound gratitude goes out to the negotiating teams whose unwavering commitment to mutually-beneficial outcomes for both companies is the reason we have reached this far.”
MHTL managing director, Jerome Dookie, welcomed the consolidated gas supply contract, saying, “today’s agreement creates a period of stability that will provide immediate benefit to all parts of the gas value chain and indeed the entire national economy.
“We are grateful for the sustained efforts of NGC and our negotiating teams throughout this process and the ongoing support of the Government of Trinidad and Tobago.”
He re-affirmed Proman’s commitment to Trinidad and Tobago, noting, “there is no doubt that this has been a difficult period for our industry, with long-term economic gas supply challenges exacerbated by the global market downturn caused by COVID-19.
“As the global energy sector begins its lower-carbon transition, we look forward to working with all stakeholders to secure a sustainable and globally competitive future for our national energy industry, capitalizing on the world-class skills, infrastructure, and capabilities that we have. Collectively built to date.”
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