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NGC to revamp its business model
The National Gas Company has announced plans to overhaul its existing business model, a move that will see the state-energy company go beyond its present role as a developer. So says its president, Indar Maharaj. The company will seek to increase its investment in the depth and breadth of the energy value chain, Maharaj said.
“One area of focus now will be entering into contracts where we apply our expertise in the gas sector, construct superior gas infrastructure for existing industry as well as new and emerging opportunities, and also maintain an equity partnership in those projects. This means the expertise we apply and resources we commit will remain as a contributor to operations and indeed to revenue generation and profit for our shareholder, T&T,” he said.
Maharaj added that the company also has a very strong presence in many of the niche facets of the gas sector.
“Through our subsidiary, the National Energy Corporation, the company has established its leadership in areas such as: Conceptualisation, promoting, developing and facilitating new energy-based and downstream industries in T&T; Development of new industrial estates; Development of new industrial deep water ports to facilitate these estates; Operation of marine assets to facilitate gas-based petro-chemical and metal plants; Development and management of La Brea Industrial Estate and Union Industrial Estate; Towage and harbour operations.”
Despite these robust undertakings, NGC would retain its majority ownership of Phoenix Park Gas Processors Ltd and its minority equity in Atlantic Train I and VI. “We continue to own and operate offshore marine compression facilities and are also joint partners with Petrotrin and Repsol in Teak, Samaan and Poui (fields). Our minority shareholding in National Helicopter Services Ltd is due for special attention this year.
“Given the expanse of our presence in the sector, we do not use the term leadership lightly. The National Gas Company aims to use its great national and regional success as experience in our bid to become a major player in the global sector. Our team is set, our model is strong, our company has become more agile and we are ready to do business,” he said.
NGC in the marketing of LNG
Maharaj said NGC has noted the manner in which the local energy sector as well as global sector has evolved over the past years. While circumstances caused some markets to expand for gas exporting countries, others were transitioning from being net importers to net exporters of gas.
Shale gas was now on the market and others have experienced increases in their demand for power generation, almost all at the same time, as there has been a shift from other sources of energy for power generation to natural gas. “What this means for NGC is that the business model by which we have operated very successfully in the past, required some reorganising. Progress has been made, due in large part to the team at NGC. One very important shift in our business model has been NGC entering the marketing of LNG.
I am delighted to say that in 2012, NGC successfully took two shipments of LNG to market and will continue to develop our marketing capabilities,” Maharaj said. “This particular step is important to us at NGC because it links in to our aggressive thrust into the global markets. Since our formation in 1975, the company has focused primarily on developing the national infrastructure for T&T to assume a clear leadership position in the gas sector.
With the success we have had and the level of expansion that has taken place, matched of course with the company’s robust cash position and credit rating, we have decided to apply similar fervor in our foray into the global market place.”
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