The National Gas Company of Trinidad and Tobago Limited and EOG Resources Trinidad Limited reached an agreement for a continued supply of natural gas to the domestic market from 2019, following the execution of a gas supply contract for new reserves on June 14.
The signing was held at EOGs Sweet Briar Road offices on Wednesday.
At the signing ceremony, NGC President Mark Loquan described the negotiations as tough, yet exceptional at all levels in both organisations in getting this agreement executed.
He said the agreement now paves the way for increased collaboration for both companies to stimulate increased gas production to the domestic market.
EOG is one of the key suppliers of domestic gas to the petrochemical sector, with NGC already being a partner with EOG in the South East Coast Consortium (SECC) Offshore Block.
Managing Director of EOG Resources (Trinidad) George Vieira said: EOG is grateful to NGC for negotiating in good faith as this charts the course for future investment and partnership opportunities.
Loquan also expressed thanks to both the EOG and NGC commercial and legal teams, our NGC Board, and all involved for their hard work and professional approach in reaching this major milestone; not only in the context of a good working history, but also for the future of our energy sector.
Both companies can now get down to the business of collaborating on the development of smaller fields and creating further benefit along the value chain for Trinidad and Tobago.
While he could not speak to the specific details of the contract, in terms of volume and time, Loquan commented that this milestone illustrated NGCs new strategic direction and its mission of becoming a global player through strategic partnerships locally, regionally and internationally.
The natural gas supply contract that NGC signed with EOG Resources is the second such agreement that the wholly state-owned company has completed with an international energy company in less than one month.
Last month, NGC signed a what was described as a milestone contract for the supply of natural gas with energy major bpTT.
In signing that contract, Loquan, who was appointed as NGC President in September 2016, said that the bpTT signing represented a different operational and commercial relationship for the two entities.
The days of long duration contracts and low pricing when compared to past contracts are over, he said, adding that these components now depended on exploration and further development.
There should be timely investments ahead of decline. With both parties working closely at the strategic and operational levels, and with the Ministry of Energy and Energy Industries, and other stakeholders to create value for Trinidad and Tobago, said Loquan.
While he could not speak to the specific details of the contract in terms of volume and time, he commented that this milestone cemented NGCs new strategytransforming its business, growing along the value chain, moving into other jurisdictions and becoming a global player through strategic partnerships.
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