The NGC Group has recorded a profit after tax of TT$1.6 billion for the financial year ended 31 December 2024.
This is a recovery for the NGC Group from a loss-making position at the end of 2023. In 2023, the company reported a loss of TT$1.3 billion, which was principally as a result of impairment charges of TT$1.8 billion. The 2024 profit represents an improvement of TT$2.9 billion from last year.
Despite the improvement, the NGC Chairman, Gerald Ramdeen, in the Chairman’s Report has indicated that the NGC is severely challenged in its cash management by the non-payment of T&TEC receivables, which stands at TT$6.3bn and is estimated to grow by TT$1.2bn per year if not urgently addressed. The closure of the Niquan Plant also adversely impacted the receivables by a further TT$145 million.
The report also identified that several major upstream and downstream contracts are due to expire in December 2025. This will pose a challenge in a tight gas environment with rising costs.
One of the major activities for the NGC in 2024 was the restructuring of Atlantic. The restructuring of Atlantic Trains 2 and 3 became effective in October 2024; since then the NGC was able to ship its first LNG cargo from Atlantic LNG Trains 2 and 3.
According to the report, the NGC has been actively pursuing opportunities in the upstream to strengthen its position as the sole domestic/downstream gas aggregator. These include the acquisition of a 20% participating interest as a State entity in each of the Charuma, Cipero and Rio Claro onshore blocks. NGC also acquired a 20% participating interest, along with the operator, BP with 80% interest, in the Cocuina Exploration and Production License. This is now dependent upon the renewal of the Office of Foreign Assets Control (OFAC) license. The NGC has suspended work on these E&P Licenses. It should be noted that the report also says that the “NGC will continue to support any initiatives aimed at allowing our country, through the company, to benefit from the exploration of these fields, which are strategic to the future of the energy sector in our country.”
In addition, the final investment decision (FID) was taken on the Beachfield Manatee Upgrade Project in 2024, which is required to process Shell's Manatee gas production to both the domestic and LNG markets.
Shell plans to bring production online by 2027, a portion of which will be allocated to the domestic market. These acquisitions will position the company to benefit from the strategic growth in future upstream and mid-stream developments.
Looking ahead, Ramdeen noted that natural gas remains critical in meeting the local energy needs and growing global energy demand while supporting the transition to cleaner sources.
He has identified that the key strategic focus areas for the upcoming years include:
Optimising current value chain business operations.
Collaborating with upstream producers to ensure the safe and timely completion of the Manatee project.
Supporting the FID for the deepwater Calypso Development.
Optimising the use of existing energy infrastructure on new gas supply.
Diversifying revenue streams through high grade regional and international investments.
Progressing sustainability initiatives including wind and solar power generation.
In addition, NGC will undertake a long overdue subsea inspection of one of its most valuable assets including any necessary remedial work to secure its pipeline infrastructure.
The Energy Chamber of Trinidad and Tobago congratulates the NGC Group on returning to a profitable position. The Group plays an extremely important role in the energy sector and serves as a model state agency in Trinidad and Tobago. The company has been focused on monetizing the natural gas resources of the country and the Energy Chamber extends congratulations to the NGC on their 50th Anniversary.