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http://toolkit.ngc.co.tt/introduction/

Introduction

AN INTRODUCTION BY MARK LOQUAN, President, NGC

Mark Loquan

Welcome to the website of The National Gas Company of Trinidad and Tobago Limited. This section is designed for companies exploring the investment opportunities that a vibrant energy sector offers. Here, you will find information and links which will, I hope, stimulate your interest in pursuing business in Trinidad and Tobago. It will give you both an overview and some detail on what is involved.

Hydrocarbons have made Trinidad and Tobago the Caribbean’s wealthiest and most industrialised nation. While 34.6% of GDP and 78.0% of exports rely on the oil, natural gas and petrochemical industries, our economy is still the most diversified in the region.

Listed among the 80 High Income Countries in the world, we have acquired a reputation as an excellent location for international companies interested in expanding their investments or diversifying their businesses into the energy sector. The nation has one of the highest growth rates and per capita incomes in Latin America, a GDP of US$23.56 billion and per capita GDP of US$15,511 (2016 projection). In November 2011, the OECD removed Trinidad and Tobago from its list of Developing Countries.

The History of the Petroleum Industry in Trinidad and Tobago

The first recorded instance of Trinidad and Tobago’s energy sector making a significant impression beyond our shores was over four centuries ago. Indeed, when Sir Walter Raleigh landed in Trinidad in 1594, the Pitch Lake was an unexpected boon to him for caulking his sea-worn ship.

Two hundred and fifty years would pass before interest was aroused in the crude oil deposits in south Trinidad, with commercial drilling starting in earnest in 1908. The first oil refinery was commissioned shortly afterwards, and offshore oil exploration began in 1954.

It is the discovery of natural gas in the late 1960s that revolutionized Trinidad and Tobago’s economy, and put us on the world map as a significant gas-based, energy-producing nation.

NGC was formed in August 22, 1975 expressly to purchase, transport and sell natural gas. From that day to this, natural gas, because of its environmental attributes and touted as the energy of the future, has galvanized our economy, and is the industry which holds the most appeal to foreign investors.

What makes Trinidad and Tobago islands of opportunity for the investor?

The benefits of doing business with and within this dynamic Caribbean territory are numerous:

It is worth highlighting three initiatives which facilitate investment. The first two aim to alleviate the burden of red tape and bureaucracy which so often plagues commerce between countries. The third is an indicator of good and transparent governance as it relates specifically to investment in T&T’s energy sector:

  1. The implementation of a Single Electronic Window for Trade and Business Facilitation links over ten Government departments that are involved in delivering key business related e-services. No longer is there a need for multiple forms and repeated trips to several different agencies. Transactions are seamlessly conducted online. https://www.ttbizlink.gov.tt/tntcmn/faces/pnu/PnuIndex.jsf
  2. An official investment promotions agency, InvesTT provides a co-ordinated investment facilitation process aligned to the Ministry of Trade, Industry and Investment. It is an on-line service, through which knowledgeable sector experts, strategic alliances and an extensive network of real estate and technology parks can be accessed. http://www.investt.co.tt/
  3. Trinidad and Tobago has started the implementation stage of the Extractive Industries Transparency Initiative (EITI) process and, with the publication of its first report in 2013, is soon expected to achieve Compliant Country status, the highest level of EITI membership. It involves putting in place all the necessary legal and administrative systems to conform to the EITI Rules and Criteria, and the passing of a stringent independent Validation Test set by the EITI International Secretariat and Board. http://www.tteiti.org.tt/

What is NGC’s role in facilitating new industry development?

Over the past 42 years, NGC has provided customers in the power, petrochemical, heavy and light industrial/commercial sectors with reliable, economically priced natural gas. With the recent completion of three significant pipeline projects, we boast a 1,000 kilometre network of onshore and offshore pipelines that criss-crosses Trinidad andconnects Tobago to the grid at the Cove Industrial Estate. This recent expansion gives us the capacity to meet new demand from large and small concerns.

NGC works closely with our subsidiary, National Energy Corporation, which supports the development of the natural gas-based industry by developing and operating industrial site, port and marine infrastructure for gas-based investors.

How is the natural gas sector developing?

Trinidad and Tobago is widely regarded as one of the most successful countries in the world when it comes to building and sustaining a natural gas based industrial sector. Despite having relatively small gas reserves,–– we have successfully developed world-scale, gas-based industries, making us the world’s largest exporter of ammonia and methanol and a major exporter of LNG. In addition, almost all of Trinidad and Tobago’s electricity is generated from natural gas, giving us an economical and reliable supply of electricity and allowing us to build successful metal processing industries.

What is the short-term outlook for Trinidad and Tobago?

There has been a significant increase in drilling offshore and on-land in south Trinidad. This is set to continue over the next few years, with both exploratory drilling in new acreage and development drilling of existing reservoirs to maintain production. Seismic data collection is identifying existing opportunities, with more planned in the next three years. New on and off-shore bid rounds are making additional acreage available to oil and gas companies.

At the end of 2015, Trinidad and Tobago had 10.6 trillion cubic feet (tcf) of proven gas reserves, 3.24 tcf of probable reserves, 1.15 tcf of possible reserves, and exploration reserves of 7.76 tcf.

The country’s energy infrastructure includes:

In addition to the links throughout this Introduction, further information on the energy sector of Trinidad and Tobago is available at:
www.energy.gov.tt/
http://energynow.tt