The National Gas Company of Trinidad and Tobago Limited (NGC) has signed a natural gas supply agreement with Primera Oil and Gas Limited, a subsidiary of the Canadian energy exploration company, Touchstone Exploration.
The agreement was signed today, Friday 18th December 2020.
According to an official statement from NGC, Primera—acting on behalf of its Joint Venture partner Heritage Petroleum Company Limited—will supply gas from the Ortoire Block, initially from the Coho-1 field.
NGC’s President Mark Loquan says the agreement signals an important milestone in this country’s gas story.
“NGC is unwavering in its commitment to secure natural gas through innovation and strategic partnerships, especially in these challenging times. This is notable because onshore natural gas production has been for so long overlooked in the sector,” he says in the release.
He also congratulated the teams who worked on the agreement, affirming that, “…in an epoch where the energy industry here and globally rarely fields a good story, this one bodes well for Trinidad and Tobago.”
And Chief Executive Officer of Heritage Petroleum, Arlene Chow, notes that the “strategic partnership is not only promising for the industry and the companies involved, but ultimately, it will greatly benefit the people of Trinidad and Tobago”.
Meanwhile, the Chief Executive Officer of Touchstone, Paul Baay, says Touchstone will benefit for decades from this agreement alone.
“This agreement provides a stable, multi-decade revenue stream for Touchstone to fully develop the world-class asset at Ortoire,” he points out.
He added: “This transforms the company from being an exploration company to one that is a full cycle energy provider. The structure of the agreement provides the shareholders of Touchstone with a predictable cash flow and earnings stream for years to come while minimising the capital required to maximise the resource.”
