Apr 2015 Financial News

FCB head sees good tidings for TT

Apr 16, 2015

SHELL’S US$70 billion cash and stock bid for the BG Group and the recent signing of a multi-million dollar deal by Mitsubishi Group, NGC and Massy Holdings to build a methanol plant have been described by First Citizens Group chief executive officer Karen Darbasie as “very interesting developments” which, “bode well” for Trinidad and Tobago.

Darbasie shared her thoughts on these mega deals during an interview with Newsday yesterday about her job as CEO, a position which she formally took up last Tuesday (April 7).

“There are some very interesting developments in the oil and gas industry that have taken place over the last week; the Mitsubishi signing with the DME plant as well as the Shell acquisition of BG.”

“I think we need to have a look at the implications of those for the overall economy.

These are certainly big developments that are happening in the oil and gas sector, that I think bode well for us,” Darbasie said.

Recently, Mitsubishi Gas Chemical (MGC), Mitsubishi Corp (MC) and Mitsubishi Heavy Industries (MHI) announced they have signed an agreement with State-owned National Gas Company of Trinidad and Tobago (NGC) and Massy Holdings (Massy) for the construction of a previously announced methanol and dimethyl ether (DME) manufacturing complex in Trinidad and Tobago.

Investment costs have been estimated at $1 billion. The partners have also concluded the engineering, procurement and construction and gas supply contracts as well as land leases for the facilities. Discussions are currently underway with a syndicate of Japanese banks to finalise a loan agreement.

The complex will be owned by Caribbean Gas Chemical, a joint venture in which MGC and MC will each have a 26.25 percent stake, MHI 17.5 percent, NGC 20 percent and Massy ten percent.

It will be built at La Brea and will be designed to produce 1 million m.t./year of methanol and 20,000 m.t./year of DME. Startup is scheduled for October 2018.

The methanol produced at the facility will be marketed worldwide by MGC, MC and Massy. The partners will also work closely with the government of Trinidad and Tobago to promote the use of DME as a substitute for diesel in Trinidad and Tobago and in other Caribbean countries. Plant design and construction will be undertaken by MHI.

Having been on the job for one week, Darbasie is still in the process of familiarising herself with First Citizens Group’s local and regional operations and meeting staff in its various divisions.

Hence her “one-day” trip to Barbados today (April 16) to meet staff at the six branches of First Citizens (Barbados).

Darbasie will be back in Barbados next week for a follow-up visit, then she heads to St Lucia the week after that to meet staff at the eastern Caribbean head office of First Citizens Investment Services (FCIS) and at First Citizens (St Lucia).

Trips to St Vincent and Costa Rica are also in the works but no set date has been confirmed just yet.

Darbasie, who succeeded Larry Nath as CEO of First Citizens Group, most recently served as Country Treasurer and Local Market Head of Citibank (Trinidad and Tobago) Limited and Managing Director of Citicorp Merchant Bank Limited.

Source:
By SASHA HARRINANAN
Newsday
Thursday April 16, 2015

http://www.newsday.co.tt/business/0,209764.html