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VOLUME 27 NO. 2 JULY 2017 Transformation Within the Energy Sector – p 4 WHAT’S INSIDE PPVS Upgrade Project – p 11 JULY 2017 2 27 2 CONTENTS headline Expanding Our Business HEADLINE Opportunities 03 BUSINESS DEVELOPMENT A Kaleidoscope of Change: National Energy Leads Transformation Within 04 the Energy Sector PPVS Project Upgrade PRODUCED BY 11 The National Gas Company of Trinidad and Tobago Limited (NGC) Orinoco Drive Point Lisas Industrial Estate, Couva ENVIRONMENT Republic of Trinidad and Tobago West Indies AND SAFETY NATIONAL T&T'S Inaugural Clean MANAGING EDITOR Energy Conference ENERGY NEWS Christine Punnett 13 Head, External Communications, NGC Fish Landing Facility Handover Enhancing Ocean Governance: 23 SUB-EDITORS NGC Supports UTT Symposium 15 Joselle G. Sirju Public Relations Officer II LABIDCO NEWS External Communications, NGC NGC NEWS First CGCL Shipment Arrives Coretta-Lee Clifford Transformative Business for at Port of Brighton 24 Public Relations Officer I a Sustainable Future – NGC Group External Communications, NGC 16 Annual Technical Meeting TTNGL Launches Successful PPGPL NEWS PHOTOGRAPHY Additional Public Offering NGC Archives 17 PPGPL Leads NGC Group's DESIGN Securing Our Business Through Participation in UWI World of Work Lonsdale Saatchi and Saatchi Gas Supply Agreements 19 25 Advertising Limited Sharing Our Expertise – NGC PRINTING Hosts Delegations from Africa 20 NGC CNG NEWS SCRIP-J CNG Vehicle Management: Strengthening Our RFID Coming for Please address all correspondence to National Contribution 21 CNG Vehicle Safety GASCO NEWS 26 c/o NGC Communication and CNG Supply Now in Arima Brand Management P.O. Box 1127, Port of Spain Tel: (868) 636-4662,4680 Fax: (868) 679-2384 Email: [email protected] Website: www.ngc.co.tt ©2017 Material in this publication, with the exception of photography, may be reproduced once credit is given to GASCO NEWS. JULY 2017 PRESIDENT’S MESSAGE Expanding Our Business Opportunities Over the last few months, NGC’s focus has been on addressing a number of strategic items that are important to the sustainability of the Company. At the start of the quarter, Trinidad and Tobago NGL Limited (TTNGL) was high on the agenda. The company’s second Annual General Meeting (AGM) was held on April 25th, 2017. In updating shareholders on the performance of TTNGL over the past year, Chairman Gerry C. Brooks highlighted that TTNGL had delivered a 23% return to investors since the IPO in 2015, and could boast of having the highest dividend yield on the Trinidad and Tobago Stock Exchange at 7.14%. On June 5th, 2017 an Additional Public Offering (APO) in TTNGL was launched. The closing date was June 28th, 2017. The offer included the sale of 40,248,000 Class B shares in TTNGL at a price of TT$21.00 per share. We are proud to report Mark Loquan, President, NGC that the APO was a tremendous success and was oversubscribed. Another major priority for NGC this quarter was is progressing works toward the completion of a securing our business, particularly with respect pipeline tie-in to Phoenix Park Valve Station (PPVS) to gas supply. We concluded negotiations and by Q4 2019. executed natural gas supply contracts with BPTT and EOG Resources. These new contracts will secure As a high-performing state-owned company, NGC our natural gas supply for the medium term, ending continues to reinforce its presence at conferences 2023. NGC’s existing contracts with BPTT and EOG and workshops. NGC’s employees, members of will expire in 2018. Additionally, the new discoveries the Executive Management Team (EMT) and the by BPTT in the Savannah and Macadamia marine Board presented at various events to highlight the fields provide an additional two (2) tcf of gas and competence and expertise resident in NGC. This support the long-term development of the domestic strategy supports our internationalisation thrust gas-based sector. to showcase our energy expertise and services, as well as heighten NGC’s brand as a transformative In addition to the measures being taken domestically and adaptive organisation that is weathering the to shore up our gas supply, NGC continues to work challenges of the marketplace in which it operates. assiduously to advance the Dragon marine field project. The Dragon field is part of the Mariscal Sucre We have been navigating through these challenging region which includes four fields located within times, and as such, the Board and Executive Venezuela’s territorial waters. The Dragon, Patao, Management wish to acknowledge the contribution Mejillones and Río Caribe fields, located around 25 made by our employees. We have achieved many miles off the Paria Peninsula at a water depth of milestones for the first half of 2017, but there is 328-427 feet, hold an estimated 1,200 MMscf/d of significant work still to be done if we are to achieve gas. The Dragon project, which involves tripartite our long-term goals. We must remain steadfast in discussions and agreements between NGC, Shell and our dedication to our mandate to build and expand Petróleos de Venezuela S.A. (PDVSA), aims to export our business on behalf of the people of Trinidad and gas from Dragon to Trinidad. This should mitigate Tobago. gas curtailment and provide the much-needed natural gas to the domestic and LNG markets at commercially acceptable prices. To date, the project is progressing in both the commercial and technical areas, and on track towards agreement and sign-off of a binding term sheet. The NGC Technical Team Mark Loquan, President 3 JULY 2017 4 BUSINESS DEVELOPMENT headline HEADLINE A Kaleidoscope of Change: National Energy Leads Transformation Within the Energy Sector Aerial view of Port Point Lisas MR. BRIAN BRANKER MS. ANALEISE RAMGATTIE MS. TAMARA BLACKMAN Administrative Assistant IV (Ag), Business Analyst, assigned to the Business Analyst, assigned to the assigned to the office of the Vice Engineering Designs & Technical office of Vice President Investment President, Investment Facilitation Services (ED&TS) Department, Facilitation & Infrastructure & Infrastructure Development, National Energy Development (IF&ID), National Energy National Energy Today’s corporate watchword is transformation, and new era of cheaper oil will be with us for a while. for good reason. Transformation is a cross-functional These changes have created a shift in the energy effort to alter the financial, operational and strategic landscape, influenced by strong crude oil supply trajectory of a business, with a stated goal of producing and weak global demand, shale gas revolution, game-changing results. Such results can include ‘fast environmental regulations, alternative energy sources to-market strategies’, increased return on investments, and technological advances. Developing resilient cost efficiencies, new product innovations and the strategies to combat these changing dynamics have ability of the organisation to maintain momentum as become top priority for industry leaders, who have the market changes. begun to look at redefining their business approach through transformation initiatives in an effort to adapt With the fall in oil prices to levels not seen in more to the evolving energy mix. than a decade, economists are of the view that the 4 JULY 2017 OIL AND GAS PRICES JAN 2014 - JUNE 2017 120 6 110 5.5 100 5 90 4.5 GAS PROICENATURAL US$ 80 4 70 3.5 OIL PRICES US$ 60 3 50 2.5 40 2 30 1.5 20 1 Jul 14 Jul Jul 15 Jul Jul 16 Jul Jan 14 Jan Jan 15 Jan Jan 16 Jan Jan 17 Jan Jun 17 Jun Jun 14 Jun Jun 15 Jun Feb 14 Feb Apr 14 Apr Apr 17 Apr Feb 15 Feb Apr 15 Apr Oct14 Oct15 Jun 16 Jun Feb 16 Feb Apr 16 Apr Oct16 Mar 14 Mar Mar 17 Mar Mar 15 Mar Nov 14 Nov Sep 14 Sep Nov 15 Nov Mar 16 Mar Sep 15 Sep May 14 May Aug 14 Aug May 15 May Dec 14 Dec Aug 15 Aug Nov 16 Nov Sep 16 Sep Dec 15 Dec Feb 17 Feb May 16 May Aug 16 Aug Dec 16 Dec May 17 May WT I BRENT NATURAL GAS (Henry Hub) Source: US Energy Information Administration 2017 (EIA) Figure 1: Chart showing Oil & Gas Prices for period Jan 2014 – June 2017 KEY DRIVING FORCES BEHIND ENERGY SECTOR lows of US$42 per barrel in 2016. These changes have TRANSFORMATION encouraged the revival of some idled ammonia plants and the decision by Methanex Corporation to move Strong Crude Oil Supply and Weak Demand their methanol plant from Chile to Louisiana in 2015 to take advantage of North America’s abundant supply The combination of strong crude oil supply and weak and low cost of natural gas. global demand has pushed crude oil prices to their lowest levels since 2014 (see Figure 1 above). The Changes in Environmental Regulations volatility of the global oil market has been heightened based on a culmination of various factors currently Changes to environmental regulations are another afflicting energy markets, including geopolitical serious driver behind the changing energy landscape. unrest as well as economic uncertainties. For example, with progressive enforcement of strict sulfur emission regulations globally, shipping Shale Gas Revolution companies and vessel operators have started exploring new avenues to comply with environmental emission The biggest innovation in energy so far, this century standards to be imposed in the future. Indeed, more has been the development of shale gas and the stringent sulfur content limits of marine bunker fuel associated resource known as 'tight oil.' Shale energy are being imposed within Emission Control Areas ranks as a top game-changer, not only because of its (ECAs), reducing from current limit of 1% to 0.1%. With abundance in the United States, but also because of the rising sulfur emission legislations implemented its profound global impact.