Minister of Energy Franklin Khan says the deal between a newly-formed local company—the Trinidad and Tobago Upstream/Downstream Company (TTUDECO)—and NiQuan Energy for the supply of natural gas for the Gas-to-Liquids (GTL) project is all above board.
After more than a month of seeking details on the deal, Khan on Thursday disclosed that the deal was signed on June 2018—just three months after the TTUDECO was incorporated.
Khan told Guardian Media the natural gas for this deal will come from the “minister’s share”.
“In each block, there is a share in the minister’s name which can vary up to 20 or 30 per cent,” he said. He said such a provision is found in “various production sharing contracts.”
Paria Trading, one of the three new companies coming out of the Petrotrin shut down, will now take over the contract and be the new off-taker for any supply produced by NiQuan.
This deal, according to Khan, will see NiQuan getting 31 million standard cubic feet per day of natural gas, before liquification.
It is a long-term contract to improve the quality of diesel fuel and the value will be based on the volume used. He declined to disclose the dollar value of the arrangement on the basis of a confidentiality clause. Khan said the contract is for 10 years with an option to renew for two five year periods.
In a statement to Parliament in July, Khan said the natural gas to NiQuan has to be sourced “from arrangements that exclude the National Gas Company of T&T and which are on commercially acceptable terms.”
The company was also able to secure a multi-million dollar loan from Republic Bank Ltd (RBL) to help offset the sum of US$100 million still needed to complete the GTL plant.
TTUDECO lists only two people on its company documents, the permanent secretary at the Ministry of Finance Vishnu Dhanpaul and his colleague, the deputy permanent secretary at the same ministry.
Former Port Authority of Trinidad and Tobago chairman Alison Lewis serves as the vice-president of NiQuan and also sits on the board of RBL. She denied there was any conflict of interest in her being on both boards.
“I am on the board of RBL and have been for the last four years,” she said.
“Regarding RBL, there was no conflict of interest. My membership of both boards is a matter of public record and fully disclosed. Due process was observed throughout.”
Lewis directed all questions regarding the NiQuan deal with T&TUDECO to that company. She did not say who represented the company in meetings with NiQuan to work out the gas supply deal. She also directed all further questions to NiQuan’s VP corporate affairs, Malcolm Wells.
Wells also directed all questions regarding that deal to the T&TUDECO.
“In terms of your inquiry, I’m very happy to tell you what we’ll do with the gas but any questions relating to gas supply and the T&TUDEOC need to be directed to them,” Wells said in an emailed response to questions.
“NiQuan Energy can only speak on behalf of NiQuan Energy and commercial matters are, as you’d expect, company confidential,” he added.
“I’m very happy to talk about the benefits of GTL products and what NiQuan GTL will deliver in terms of jobs, investment and a clean fuel future for the Caribbean, but questions relating to other organisations should be directed to them.”
Guardian Media also contacted Dhanpaul, whose name appears as a director on the T&TUDECO. Guardian Media informed Dhanpaul that NiQuan confirmed a gas supply deal with T&TUDECO and asked who at the company negotiated the deal.
“Please address questions to the Minister of Energy,” he said.