Last update: 11-Dec-2013 6:16 am
Wednesday, December 11, 2013
Trinidad & Tobago Guardian Online
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NGC on PPGPL acquisition: ‘Excellent deal’
National Gas Company (NGC) president Indar Maharaj last week described his company’s acquisition of an additional 39 per cent stake in Phoenix Park Gas Processors Ltd (PPGPL) from US energy giant ConocoPhillips for US$600 million ($3.9 billion) as an “excellent” deal for NGC and T&T.
The transaction was financed from NGC’s internally-generated resources, said Maharaj in an interview on Friday, at which he was accompanied by NGC’s vice president, commercial, Anand Ragbir.
Maharaj said: “When we look at the price we paid for it and the strategic and financial returns from it, we know that we got a very good acquisition.”
Maharaj said PPGPL has been a very profitable operation over the years because it gets its raw material, natural gas, from the NGC "at what we consider to be a low price."
He said: "What it meant, therefore, is that PPGPL has a low-cost input that generates a high-value end product, which would have resulted in the company generating a great deal of cash, making it a very profitable operation."
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