NGC’s dynamic strategy for gas growth in Trinidad and Tobago

Trinidad and Tobago

Dr Joseph Ishmael Khan, chairman of The National Gas Company of Trinidad and Tobago Limited (NGC), talks to The Energy Year about the company’s efforts to ensure a greater supply of natural gas to the Trinidadian market and its strategic approach to LNG. State-owned NGC is an integrated group of energy companies, committed to delivering maximum value creation from the natural gas value chain while embracing the energy transition for the long-term sustainability of the energy and petrochemicals sectors.

What is the significance of the amended gas sales contract signed between NGC and Shell in September 2023, and what outlook does it present?
The amendment of the contract will permit NGC to purchase gas produced from the Manatee gasfield. With Manatee, this will allow us to supply gas to the downstream sector, mainly for the medium term, as we have other strategic initiatives to stabilise gas supply in the long term.
Manatee represents an extensive proven reserve from which we can potentially draw. We do note that a significant amount of work is still needed before we can access gas from Manatee. However, the field has the potential to deliver volumes to supply natural gas to the domestic producers of methanol and ammonia and will add significant economic value to the system and, by extension, the energy value chain. We are working very closely with the various partners involved and we are optimistic that we can make this project a reality.

What role will NGC Exploration and Production Limited (NGCE&PL) play in the Dragon field project?
NGC has a participating interest in the upstream development of the Dragon field, with Shell Trinidad and Tobago Limited being the operator of the Dragon exploration and production licence, and NGC – through NGCE&PL – a non-operated joint venture partner. NGC Exploration and Production Limited is a fully owned subsidiary of NGC and is the legal, corporate body established to ringfence the upstream investment associated with the cross-border Dragon gas.
We founded the company to ensure that we can practically and strategically manage the investment and work with key partners and stakeholders to bring gas from Venezuelan territory to Trinidad and Tobago. This subsidiary company will focus specifically on the Dragon project, and we do not foresee the involvement of the company in any other upstream projects at this time.

How do you see collaboration becoming more important in the local energy landscape going forward?
Collaboration is critical in the local energy landscape and partnership is at the forefront of what we do at NGC. Suppliers need to have a strong market for gas for their business to make sense, and consumers need to have some assurances around supply so they can plan and sustain their operations. Since no single supplier can fulfil all downstream demand, we need all producers to contribute towards achieving long-term supply security, and by extension, the sustainability of the downstream sector (which ultimately serves everyone’s interest). In Trinidad and Tobago, the west coast of Trinidad has an attractive geology and we have developed a strategy for the significant amount of activity occurring there – this includes the cross-border development with Venezuela.
In terms of specific strategies to boost gas production, we need to look at capturing value from all sources, including small and marginal fields. There are also small pools of reserves which can still be tapped – opportunities are present both offshore and onshore, and these marginal fields are critical.
On a regional level, we are looking for opportunities with Guyana and Suriname, where partnerships are also critical, and we have considered the geopolitical issues that may be involved.

What does the new Unitised Commercial Structure Agreement for Atlantic represent for NGC and Trinidad and Tobago?
The new agreement will allow NGC to obtain a greater revenue share from the sale of LNG on the global market. Natural gas will still be used as a fuel; and for environmental, economic and logistical reasons will remain in demand for some years to come. In the global energy transition, there will be a period where natural gas and sustainable, green commodities will co-exist.
LNG demand is projected to remain strong – and grow by some estimates – which means the market outlook for this commodity is favourable. As a leading exporter of LNG, Trinidad and Tobago is well positioned to take advantage of the potential market opportunities on the horizon. Particular attention is being paid to small-scale LNG opportunities within the Caribbean region. In that context, a greater stake in the LNG business for NGC ultimately means a greater share for Trinidad and Tobago in the potential future revenues from that sector.
For this reason, we’ve taken a strategic position to unify and reformulate the agreement to benefit from the sale of LNG when global prices and the local gas supply increase. One can see the unitised agreement as an innovative way to optimise the value that Atlantic’s facility creates.
In the long term, there is a socioeconomic benefit for Trinidad and Tobago. As a wholly state-owned company, NGC’s profits redound to the benefit of the country. The government can use those funds towards the development of the nation. The new agreement therefore holds significance for the company in terms of profitability, and for the country, in terms of the socioeconomic impact.
We need to look at this holistically – as the trains’ scale and scope increase, so will the need to increase their level of efficiency, maintenance work and other operational factors.

As the nation continues to navigate the gas supply challenges, what key steps has NGC taken to honour its role and responsibilities in the energy landscape?
We continue to establish and maintain our lines of communication with the key stakeholders and key players in the energy value chain, including the government and its various ministries, to ensure we can balance supply and demand as best as possible. We have been supporting the relevant stakeholders in the push to bring more gas on line from local and cross-border sources.
We have engaged with key stakeholders such as the Trinidad and Tobago Electricity Commission (T&TEC) and the Ministry of Public Utilities and Environment to facilitate more discussion on energy efficiency, power usage, power maximisation and power generation. For example, the construction of greener, more energy-efficient buildings can support energy conservation in the power generation sector and potentially allows for more molecules of natural gas to be contributed to the LNG and petrochemicals sectors, where there is a greater value.
We have also been advocating for greater energy efficiency in industry at the domestic level since lowering demand in effect boosts available supply. Our work on this front has included energy auditing of light industrial consumers through a Super ESCO project, an initiative of NGC subsidiary National Energy Corporation of Trinidad and Tobago Limited (National Energy). Under the project we will partner with companies to perform energy audits to determine and recommend ways for them to reduce their power consumption – such as smart systems in their buildings. NGC has already implemented these systems in our own offices.

What are some of the main ESG initiatives being undertaken by NGC in 2024?
NGC undertook a 315-hectare [3.5-square-kilometre] reforestation programme, in keeping with our “No Net Loss” philosophy where the company is committed to reforest any area we would have degraded as part of our pipeline operations. This began in 2005. We did so in collaboration with the Forestry Division, which assigned acreage in forest reserves for planting. NGC planted trees in an area equal to or more than what we would have cleared for operations and tended the trees to an acceptable height and size. The sites were then “returned” to the care of the Forestry Division. NGC’s most recent efforts under the reforestation programme is the replanting of 5 hectares [50,000 square metres] of forest in Rio Claro to compensate for NGC’s Cascadura Phase 1 Project. These replanted areas also serve as carbon sinks in support of our energy transition efforts.
In a similar vein, we are working on an exercise with our subsidiary LABIDCO, where we have identified trees that will be planted as part of a carbon capture initiative but will also simultaneously encourage cottage industries such as the production of goods from local fruit and lumber to generate revenue in the communities, who are also actively engaged in the planting exercise.
NGC recently instituted a programme called Beyond 315 as an evolution of the reforestation programme to leverage the versatility of forests to support sustainability. NGC has recognised there are unleveraged opportunities to extract greater value for the country from its replanted forests, particularly through the integration of agroforestry and eco-tourism components.
Within the context of agroforestry, we are exploring an Apiary-Culture initiative to create sustainable livelihoods for the stakeholders through the production of honey and its related products. To support this initiative, in 2023, members of the Rio Claro Reforestation Group participated in a five-day workshop that introduced them to facets of setting up a functioning apiary unit.
In addition to agroforestry and eco-tourism, NGC has begun to focus on mangrove restoration as part of Beyond 315. The restoration project is being done in collaboration with the IMA [Institute of Marine Affairs] and has both environmental and community-based components. The project is a two-year programme which started in 2023 and will be completed in 2025. We have begun the first project in the Carli Bay area, which will be one of several to be restored.
Beyond 315 represents another step in NGC’s green agenda. Apart from the environmental benefits of expanding the reforestation programme, greater public involvement in the programme’s activities will positively impact sustainable development at a community and national level.
As part of the green agenda, NGC has established sustainability targets that represent the company’s efforts towards the achievement of Trinidad and Tobago’s Nationally Determined Contributions (NDCs) to the Paris Agreement. One strategy undertaken by the company in support of these targets is exploring opportunities in the renewable energy space. In this regard, NGC has acquired a 30% equity in the Brechin Castle Solar project, alongside joint venture partners bpTT and Shell. Additionally, NGC Green Company Limited (NGC Green) – a subsidiary of NGC – was formed in Q3 2023 to focus solely on green energy and sustainability projects. The company’s primary mandate will be to expand and accelerate The NGC Group’s pursuit of local, regional and international opportunities around clean and renewable energy, energy efficiency, sustainable transportation, alternative fuels and research and development.

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