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http://toolkit.ngc.co.tt/investment-policies-and-opportunities/

Investment Policies and Opportunities

General

The Government has identified industries downstream from energy as critical for the achievement of a long-term diversified downstream industry as well as for sustainable growth and further diversification of the economy. Broadly, the investment opportunities that exist in this sector are in the areas of:

National Energy

National Energy Corporation of Trinidad and Tobago (National Energy), a subsidiary of NGC, for more than 30 years has supported the infrastructure of the energy industry, while providing quality service in the area of natural gas-based development.

National Energy’s key business activities include:

Energy Industry Development, with a focus on downstream industries: National Energy is focused on six key industries – petrochemicals, plastics, metals, biochemicals and specialty chemicals, renewable energy, and inorganic chemicals.  Melamine, a tertiary derivative produced at the Point Lisas Industrial Estate, is available for immediate downstream development.

Energy Efficiency

Energy Efficiency has been identified as a key factor in achieving energy security and fostering sustainable development for Trinidad and Tobago. NEC will be developing frameworks for an Energy Efficiency Policy and the establishment of an Energy Management Programme for the Point Lisas industrial estate.

Energy Services & Local Content

National Energy’s role in developing new energy and downstream industries for local industrial estates  positions it as a significant stakeholder in advancing local content and energy services within Trinidad and Tobago. National Energy and representatives from NGC, PETROTRIN, NP and the Energy Chamber have completed a report entitled “A Framework for Creation of a Sustainable Energy Services Sector and Local Content Programme for Trinidad and Tobago”.

Operations

National Energy manages the following site, port and marine infrastructure:

La Brea Industrial Estate

The La Brea Industrial Estate and Port provides industrial lands to small to medium- sized tenants. The estate also contains a bioremediation facility and a fabrication yard where nine offshore platforms have been fabricated since 2004. The Brighton Dock and Storage Yard is available for use by the tenants of the La Brea Industrial Estate as well as for new tenants for the import and export of raw materials. Port activities include cargo handling, rig/vessel repairs and offshore support services.

Union Industrial Estate (UIE) & Port of Brighton

UIE comprises 400 hectares of land supplied with all amenities to handle heavy and light downstream gas-based industries. UIE is supported by the Port of Brighton.

Galeota Port & Fish Landing Facility

The Galeota Port project comprises the construction of a port at the Galeota Peninsula capable of accommodating vessels of Handymax size, eight hectares of storage, and a fish landing facility.

Marine Operations

National Energy owns, operates and maintains six multi-user Terminals as well as ISCOTT Dock, located in the Point Lisas Harbour, which handle petrochemical and steel products.

Over the years, National Energy has also built up a solid reputation as a reliable tug service provider and today provides this service locally to all major ports in Trinidad and Tobago as well as regionally.

Corporate Social Responsibility

In articulating its core values National Energy has adopted a collaborative approach to Corporate Social Responsibility, i.e. “working in harmony with the communities in which we operate to contribute to their overall development”.  This requires a shift in focus from the traditional corporate patronage to the establishment of long-term partnerships with communities.  In this regard, National Energy invests in community initiatives that promote sustainable development with an emphasis on the institutional strengthening of key community groups and institutions.

Box 3: NGC and National Energy

The National Gas Company (NGC) was incorporated in 1975. The company is important to the continued development of the natural gas-based energy sector of T&T. It purchases, compresses, transmits, sells and distributes natural gas to industrial and commercial users. It also owns, maintains and operates a pipeline network of approximately1000 km, comprising both offshore and onshore segments having a transportation capacity of 4.4 billion cubic feet per day (Bcf/d). In addition NGC has investments in upstream gas exploration and production, Natural Gas Liquids (NGLs) and LNG production, shipping and marketing.

Outward Investment

NGC’s mission is to be a valued partner in the global energy business. As a result, over time, in addition to its wide-ranging inward activities and strategic investments upstream, midstream and downstream of the natural gas value chain, NGC is interested in and is actively pursuing joint venture energy sector investments in external markets in the region and beyond. In this regard NGC is pursuing opportunities in natural gas supply arrangements in the Caribbean through the proposed Eastern Caribbean Pipeline Project, and mini LNG and CNG. In Africa NGC is an integral part of the Government’s Africa initiative in collaboration with National Energy and Ministry of Energy and Energy Affairs. Through this initiativeNGC is seeking viable equity interests in the natural gas sector of several African countries. NGC is alsointerested in viable investment opportunities in Asia and other emerging gas sectors.

Overall NGC has a particular interest in investment opportunities in markets where the Trinidad Gas Model of Development is relevant. With its intimate involvement in the implementation of this highly successful model, NGC is well positioned to be a valued investment partner in the global energy business. In these markets the NGC basket of offerings includes its financial resources, human capital and technical knowhow in natural gas monetization. While most of these initiatives commence with government to government relations NGC is critical to the follow-up work and the realisation of the commercial opportunities. It is fully committed to this as a step towards the realisation of its vision.

Box 4 – Downstream Energy Sector: Summary Profile

  • 1 natural gas liquids processing facility
  • 4 LNG trains
  • 10 ammonia plants
  • 7 methanol plants
  • 1 urea plant
  • 4 direct reduced iron modules
  • 4 power generation plants
  • 1 cement manufacturing plant
  • 1 petroleum refinery

Specific Opportunities

The specific opportunities identified for investment are:

Upstream

There are opportunities for asset maintenance, gas compression, facilities upgrade and development drilling in existing operations off the east and north coast of Trinidad. In 2013, additional acreage is being made available to oil and gas companies through an onshore and offshore bid round which will include shallow and deepwater blocks.

Midstream

A mid-sized LNG facility, which will target exports to the Caribbean market including the French islands of Guadeloupe and Martinique, is proposed for the La Brea Industrial Estate. Approval in principle has also been given for the export of gas to the Caribbean market, possibly as compressed natural gas (CNG) from a Tobago-based facility with the supply of gas coming from Block 22, north of Tobago. In addition, there is the planned Eastern Caribbean pipeline project for which gas supply contract negotiations are on-going.

Downstream

A number of downstream opportunities exist. These include:

Enhancement of the downstream demand through these opportunities would also be a driver for increased exploration and production activities in the upstream sector.

Figure 2: Downstream Expansion Opportunities

downstream-expansion-opportunities

Investment Criteria

In determining the best options for further gas-based industries, the Government has favoured the award of approvals for projects based on objective assessments using the following criteria, inter alia:

Market Size

T&T offers access to an extended market of over 700 million through CARICOM sponsored Bi-lateral Agreements with  Colombia, Costa Rica, Cuba, Dominican Republic, Venezuela and the USA, as well as Investment Treaties with France, USA, UK, Switzerland, Cuba, India, Germany, China, Spain, Mexico and Korea. T&T is a member of the Economic Partnership Agreement with the European Union and as a member of the World Trade Organization (WTO) subscribes to the principle of global free trade. The country also participates in the Caribbean Basin Initiative (CBI), which is a vital element of US economic relations with its neighbours in Central America and the Caribbean. It is also a party to the on-going negotiations towards a CARICOM-Canada Trade and Development Agreement.