Sep 2005 Financial News

Guardian Holdings, T&T Unit Trust invest in US$550-m gas pipeline

Sep 15, 2005

Trinidad and Tobago Unit Trust Corporation has acquired an equity stake in the Eastern Caribbean Gas Pipeline Company Ltd, which has undertaken a multi-billion dollar project to supply gas via a pipeline from T&T to several eastern Caribbean islands.

Another major investor in the project is Guardian Holdings Ltd (GHL), which is listed in the twin-island republic and in Jamaica. Guardian Insurance in Jamaica is a subsidiary of Guardian Holdings.

The gas pipeline represents an investment of US$550 million (J$34) billion and promises to deliver natural gas from Trinidad and Tobago to Barbados, St Lucia, Dominica, Martinique and Guadeloupe, primarily for electric power generation.

The company says that the first delivery of gas to Barbados is planned for early 2008, with gas deliveries to the other islands occurring in the following years.

Trinidadian investor Trevor Boopsingh, the chairman of (ECGPC), says that the equity stake by the unit trust was a welcomed investment, adding that the investor would bring long-term stability to the project.

At the same time, the unit trust said the investment would provide unit holders with solid long-term income stream.

"This acquisition marks a major step in UTC's drive towards providing unit holders with the opportunity to benefit from viable investment opportunities in the energy sector," said Michael Alexander, the executive director.

The unit trust investment was disclosed shortly after the National Gas Company of Trinidad and Tobago announced its intention to take an equity position in the project.

According to Gregory Rich, project coordinator, the involvement of the unit trust in the project "is another strong endorsement of the reality and value of the pipeline for the Eastern Caribbean region in many ways, and for many years".

The Jamaican Observer
Wednesday, 14th September, 2005
http://www.jamaicaobserver.com/magazines/Business/html/20050913T220000-0500_88307_OBS_GUARDIAN_HOLDINGS__T_T_UNIT_TRUST__INVEST_IN_US_____M_GAS_PIPELINE.asp