The National Gas Company (NGC) has announced that it has finalised a commercial agreement with Global Petroleum Group (GPG) operating in Grenada.
The company says this agreement marks a major development in the collaboration and energy cooperation among CARICOM countries, and is an important pillar in growing and strengthening the region’s economies.
The relationship between the two companies is a result of the Energy Sector Development Framework Agreement signed between the Government of the Republic of Trinidad and Tobago (GORTT) and the Government of Grenada.
The National Gas Company of Trinidad and Tobago Limited (NGC) has announced that effective 2nd April, gas supply to Caribbean Nitrogen Company (CNC) has been resumed.
This comes on the heels of the signing of a new Gas Sales Agreement on April 1, 2018, between the two companies.
This Gas Sales Agreement followed several months of complex and intense negotiations by CNC and the NGC management team, who continued to work assiduously and professionally to secure a mutually acceptable agreement, resolving all outstanding issues between the parties.
The National Gas Company of Trinidad and Tobago Limited (NGC) and Caribbean Nitrogen Company Limited (CNC) have announced that they have reached agreement on the key commercial terms of a gas supply agreement.
The companies say they are in the process of formalizing the required legal agreement and it is expected that this will be done imminently.
Both companies say they are grateful to Minister in the Office of the Prime Minister Stuart Young and Minister of Energy and Energy Industries Franklyn Khan for their support.
The National Gas Company Limited (NGC) and Caribbean Nitrogen Company (CNC) have quietly returned to the negotiating table after a major stand-off that resulted in the NGC cutting off natural gas to the company and CNC taking the State-owned enterprise to the UK Court of Arbitration.
The stand-off earlier this year, led to the Government accusing CNC of trying to bully the NGC for gas and saying it is not a secret that NGC will have to pay significantly higher prices for gas in 2019.
The Caribbean Nitrogen Company (CNC) said it risked becoming uncompetitive in the global ammonia market if it had accepted proposals for a long-term contract by the National Gas Company (NGC).
According to a release issued by the company, it did not accept NGC's final offer as it would have put the plant in a negative financial position.
The move it said would have led to business becoming unsustainable.
The release also sought to clarify information that may affect its future.
Caribbean Nitrogen Company (CNC) says it is willing to return to the negotiating table but only with independent verification.
CNC says the National Gas Company has not offered a fair price for both parties.
The company issued the following statement Friday afternoon:
"All parties were working to resolve this situation until the gas was turned off, forcing us to close our operations.