May 2016 Financial News

NGL exploring Africa and Latin America

May 06, 2016

T&T National Gas Limited (TTNGL) is exploring prospects in Africa and Latin America, chairman Gerry Brooks said yesterday.

In his report to shareholders at the energy company’s annual general meeting at the Trinidad Hilton and Conference Centre, Brooks said there are plans to leverage the company’s 100 years of collective experience in the energy industry “to the benefit of Ghana, Tanzania, Mozambique and emerging jurisdictions which have come and taken a look at our Point Lisas Estate and seen the tremendous strides we have made.”

Speaking just hours before he left the country to join Prime Minister Dr Keith Rowley on an official trip to Ghana, Brooks said TTNGL will become internationalised once it starts to do business in markets outside of T&T.

“Already, there are two teams in Africa looking at gas processing opportunities, port opportunities, piping opportunities,” he said, adding that the company is also looking at possible markets in Latin America.

Apart from finding new markets, Brooks said TTNGL has made strides in cutting costs with measures such as having one insurance entity for the company rather than two which resulted in high costs. He said discussions are also taking place with suppliers “on how we can re-engineer the business to be able to effect cost savings.”

Brooks noted that freight costs have been reduced as a result of lower oil prices and other factors.

Among plans being consider is development of the Union Estate “into a second Point Lisas”, as well as expanding into a Point Lisas North and South.

In the short-terms, he added, there will be expansion of construction activities and increased energy jobs.

Brooks said the methanol plant being developed jointly with Massy Holdings Limited and Japanese companies Mitsubishi Gas Chemical Company, Mitsubishi Corp and Mitsubishi Heavy Industries, is expected in 2018/2019.

There was lusty applause from shareholders when Brooks revealed that the option of offering dividends in US dollars was being considered. He said TTNGL shares, which are currently valued at $19.52, are “attractively priced, with a dividend yield of 7.9 per cent.”

Source:
Nadaleen Singh
Trinidad Guardian
Friday May 6, 2016

http://www.guardian.co.tt/business/2016-05-06/ngl%E2%80%88exploring-africa-and-latin-america