Stakeholders laud PPGPL choice for Guyana NGL project
2026, 06/18
Guyana Office of the Prime Minister announced the selection of Phoenix Park Gas Processors Ltd (PPGPL) of Trinidad as the preferred operator for the Natural Gas Liquids (NGL) plant, a decision industry leaders say confirms the growing ability of Trinidad & Tobago to export energy services and expertise across the region. PPGPL, together with local partner GuyGas Inc., emerged as the first-ranked bidder for operations and maintenance (O&M) of the Phase One natural gas liquids (NGL) plant at the Wales Gas-to-Energy project.|
The Guyana cabinet granted its no objection to the commencement of negotiations with the companies, with a final agreement subject to technical and legal due diligence reviews. The selection follows an open Request for Proposals, advertised in January 2025 in the Guyana Chronicle, Guyana Times, Kaieteur News and Stabroek News, under the National Procurement and Tender Administration Board reference 124/2025/02.
The Energy Chamber of T&T welcomed the choice as a positive outcome for the region and a reflection of the capabilities developed within T&T’s gas-processing industry. PPGPL success in a competitive procurement exercise reflected decades of accumulated technical experience.
The Chamber noted that PPGPL’s selection followed an open, competitive procurement process and reflects the depth of technical experience that Trinidad and Tobago’s natural gas processing sector accumulated over several decades. Regional energy cooperation will become increasingly important to strengthen energy security.
“We have consistently supported greater cooperation among energy producers and service providers. Arrangements of this nature, where regional expertise is deployed to advance energy infrastructure development across states, are consistent with the Chamber’s position that long-term energy security is best served through structured partnership rather than isolated development.”
The Chamber highlighted the need for workforce development as Guyana prepares for commercial operations, noting the commitment to workforce development embedded in the arrangement and encourages all parties to ensure that skills transfer remains a central feature of the O&M programme as the facility moves toward its targeted 2027 start-up.
President of the Guyana Manufacturing and Services Association (GMSA) Rafeek Khan said manufacturers view the appointment as an encouraging sign for the energy future of Guyana. .
“Right now, it is a bit preliminary to say when this will be executed for distribution. But definitely, in my opinion, we always want to have an experienced operator, stakeholder, being part of whatever Guyana is doing,”
T&T’s long history in the natural gas industry makes the partnership valuable. Businesses are now focussed on when the wider benefits of the gas-to-energy project will begin reaching manufacturers and consumers.
“Whether you’re from Trinidad or another part of the world, it is good that we have an experienced partner. It would not do good for Guyana entering a new endeavour without an experienced partner, close by within the region. So that is a plus. In terms of implementation, distribution and sales and all those things, that is what manufacturers are awaiting, when the prices will be impacting consumers and manufacturers.
That will be the ultimate victory once it becomes a reality. But for now, I can just say, it’s a positive step in the right direction to ensuring that we have an experienced partner to manage and operate.”
Lower energy costs remain one of the main expectations surrounding the project.
“I know ultimately the consumer will benefit, every citizen of Guyana will benefit from affordable energy cut by at least 50 per cent.”
The news that PPGPL was selected for operations and maintenance of the gas processing facility under construction in the Wales industrial estate in Guyana is positive for the company and for Trinidad & Tobago.
With limited room for major domestic expansion, the company has increasingly looked overseas. Given the limited opportunities to expand within Trinidad, PPGPL has had a longstanding strategy of trying to diversify its geographical footprint and secure business opportunities outside the country. This strategy resulted in the past investments in gas trading and transport in the USA and now this opportunity in Guyana.
The contract relates only to operating and maintaining the facility. Once finalised, this contract will be to operate and maintain the facility, in partnership with a local company. The facility will produce LPG (‘cooking gas’) for the Guyana market, currently serviced by imports, and also to export LPG to neighbouring countries. Marketing of LPG remains the subject of a separate process.
The operations and maintenance contract does not include the marketing of the LPG being produced, which is a separate contract still under consideration by the Government of Guyana.
The award reflects broader efforts to diversify T&T’s exports beyond commodities.
This contract should be seen in the context of the policy to diversify Trinidad’s exports away from commodities to other exports, including services. It is also important to note that there will be a requirement on PPGPL to transfer skills, knowledge and experience to Guyana as they implement the contract. Many private-sector Trinidad & Tobago service companies have existing partnerships with Guyanese firms to service the energy sector, the result of longstanding efforts by the Trinidad private sector with support of the Energy Chamber. It is positive to see a Trinidad state enterprise also following this route.
One energy consultant explained the selection as a natural extension of the business development strategy of PPGPL .
“Well, it’s an expansion strategy,so it would be part of their business development growth strategy to expand.”
The project could create new revenue streams while enhancing the company’s reputation across the region.
“It would have been part of that strategy, plus it’s revenue-generating for them. It could still generate revenue for PPGPL; it’s good for branding purposes. I think it’s great that they were able to operate. I don’t know all the terms, if it’s with a partner, but at least even the fact that they called PPGPL, it’s a good branding for Trinidad and for PPGPL.”
The ultimate value of the contract will depend on the commercial arrangements agreed between the parties.
“It would be dependent on the terms that they would have agreed. You could get different operating models. You could just get an operating fee. They could operate it, and part of the fee could be that they get to market some of the product. I honestly don’t know what they would agree.”
Still, the the development is a positive sign for regional business growth.
“I think it is a good thing. It shows growth in the region as well.”
The Guyana opportunity comes as PPGPL continues to contribute significantly to earnings at TTNGL. The company, which owns 39 per cent of TTNGL, reported after-tax profit of $32.1 million for the three months ended March 31, 2026, up 0.94 per cent from $31.8 million in the corresponding period of 2025.
Chairman Gerald Ramdeen said stronger returns from PPGPL helped improve the company’s performance.
“This improvement was driven by higher natural gas liquids sales volumes as a result of a draw on inventory, enhanced NGL content in the natural gas stream and uplifts from prudent cost management in all areas designed to enhance margins and profitability.”
Higher sales volumes were partially offset by lower liquids production from gas processing operations, which declined by 11.5 per cent, as well as lower recognised Mont Belvieu product prices that averaged 15.8 per cent below levels recorded a year earlier.
Energy Chamber urges higher productivity amid fiscal gains
June 16, 2026
Responding to the Mid-year Budget Review by Finance Minister Davendranath Tancoo, the Energy Chamber of Trinidad and Tobago suggests the solution for sustainable revenue growth remains heightened domestic output, despite near-term fiscal support from favourable international pricing.
“While higher oil prices provided a welcome boost to Government revenues, the review underscores continued exposure to costly fuel imports, substantial subsidy expenditures and the urgent need to increase domestic energy production.”
During severe volatility driven by geopolitical supply disruptions between March and May 2026, West Texas Intermediate (WTI) crude oil spot prices surged past $114.58 per barrel in early April before cooling to $110. Prices remained elevated above $105 in early May before returning to $87.80/bbl by late May.
Strong international markets boosted Government revenues and contributed to growth in the Heritage and Stabilisation Fund (HSF), from US$5.98 billion in April 2025 to US$6.60 billion in June 2026. This growth provides a crucial buffer against future economic shocks. However, higher commodity prices continue to inflate imported fuel costs, a situation worsened by the closure of the Petrotrin refinery.
“Consequently, between October 2025 and May 2026, the Government spent approximately TT$395 million to maintain stable domestic fuel prices. While these subsidies represent a significant fiscal burden, they are necessary to shield consumers from the rising cost of fuels and to moderate transportation and distribution costs across the wider economy.”
This subsidy framework helped to avoid gasoline price rises across Caricom. The Chamber warned that declining domestic oil and gas output continues to limit the full benefit from higher prices.
“A stronger production base is essential; it would maximise financial windfalls during market peaks and provide a vital revenue cushion during market downturns.”
It backed Finance Bill 2026 measures aimed at the upstream sector, particularly reduced royalties for marginal marine gas fields.
“The bill proposes lowering the royalty rate from 12.5% to 8% for natural gas extracted from certified marginal marine fields. By easing the tax burden on these mature and marginal fields, the new legislation directly improves project economics and increases the likelihood that operators will reach final investment decisions.”
Upcoming gas projects, including Manatee, Aphrodite, Onyx, Coconut, and Ginger and a modest LNG production increase from 2024 to 2025 are signs of recent improvement.
The Chamber highlighted the Energy Accelerator Hub, accelerating upstream projects, including a deepwater PSC with ExxonMobil and Occidental. Investment conditions remain critical, as upstream activity supports jobs across the wider energy services sector, including downstream and midstream operations.
Diminishing natural gas supply further stymies the petrochemical sector, a major contributor to exports and foreign exchange earnings.
Waning participation in downstream HSE certification exams reflects reduced sector activity. Numbers fell 37% from 14,784 in 2015 to 9,271 in 2025. Expansion of renewable and low-carbon industries can exploit opportunities in wind, solar, geothermal and hydrogen with improved access to the Green Fund of over $12 billion, underutilised for climate-related projects.
Decommissioning of ageing energy assets is an emerging opportunity for service companies, reducing environmental and safety risks if not properly managed.
While high energy prices provide short-term relief, long-term resilience depends on a broader strategy of rising production, reduced import dependence and prudent management of energy revenues through mechanisms such as the HSF.
Gas and pension reforms could reshape growth and savings
June 17
UWI Economics don Dr Vaalmikki Arjoon says the proposed fiscal reforms targeting marginal gas fields and pension taxation could unlock investment in the energy sector while strengthening long-term savings and domestic capital formation.
The measures, outlined in the Finance Bill, include reduced royalty rates for marginal offshore gas fields and enhanced capital allowances designed to improve project viability for smaller discoveries that have remained undeveloped under existing fiscal terms.
The changes represent a critical supply-side intervention for the energy sector at a time when declining output continues to pressure LNG production and petrochemical activity.
“Many small offshore gas fields remain stranded and undeveloped, even though they contain gas that can help boost national supply, LNG output and petrochemical production.
Under normal existing fiscal terms, however, these fields may not be financially attractive to energy majors like Shell and BP, when compared with larger opportunities in their global portfolios.
The new fiscal terms can help reverse this underinvestment by improving the economics of developing these smaller marginal fields and making them more financially viable.”
Under the revised regime, the royalty rate for marginal fields would fall from 12.5% to 8%, while qualifying capital expenditure would be deductible at 130% over five years.
“This is important because a royalty is charged on production, not profit. Therefore, even if hypothetically, a project is not very profitable, the company still must pay royalty once gas is produced. For a marginal field with higher costs and limited reserves, a high royalty can make the project unviable before it even starts.”
By lowering the royalty to 8%, government is making a practical choice: a smaller share from a producing field is better than nothing from one left stranded.
“This is economically sound especially if the fields would not have been developed otherwise. The 130% capital allowance also lowers taxable profits over time and improves project returns. For example, if a company spends $100 million in qualifying investment, it may be allowed to deduct $130 million over time. That improves cash flow and helps the project meet its investment thresholds.”
Arjoon said the measure can also attract investment from smaller and medium-sized global upstream companies that may not yet have a presence in Trinidad and Tobago.
“Companies like Talos Energy or Matador Resources may find these marginal fields attractive more so with this new reform, especially fields located within larger acreages near existing infrastructure, or close to pipelines and processing facilities. Indeed, access to nearby infrastructure can reduce development costs and shorten the time to production.”
The wider economic benefits could be substantial, especially if several marginal fields come online.
“Every ounce of gas matters and gas that remains underground is not doing anything for us. The more gas extracted means better supply security for LNG production and for the petrochemical plants.
It will improve plant utilisation, support more production exports, strengthen foreign exchange earnings, generate royalties and tax revenue for the state. Importantly, it also creates more activity for the energy service companies like local contractors, marine services, engineers, fabricators and logistics firms.
Properly managed, this measure can unlock gas that would otherwise remain underground and convert stranded resources into production, higher cash flows for the energy sector, increased State revenue, jobs, higher energy exports and forex earnings.”
Tax-Free pensions may lift retirement security
Arjoon described removal of tax on approved pension and annuity income as a structural reform aimed at improving fairness and strengthening long-term savings behaviour.
“Pensions are essentially deferred earnings or money that workers set aside over decades through a pension plan, so taxing them places an additional burden on people who acted responsibly by preparing for retirement.
The underlying principle here is sound: retirement income should not be penalised after a lifetime of contributions to formal schemes. In that sense, this reform improves fairness across different types of household income and supports the financial dignity of retirees.
Indeed, retirement is a phase where earning capacity naturally declines, and individuals depend on the financial resources they have accumulated.”
Allowing retirees to retain a greater share of pension income acknowledges that reality and reinforces the principle that the system should support, rather than erode, financial independence in retirement. He estimated that the change would immediately increase disposable income for pensioners, particularly those previously taxed on annual pension income above $90,000.
“This new tax savings benefit, however, is not to be taken lightly, because pensioners are more likely to spend additional income on essentials such as food, utilities, medicine, transport, and household services. This means the measure should support consumption in a steady and predictable way, and since the benefit is delivered through a lower tax rather than a one-off grant, it also gives households a recurring improvement in monthly cash flow.” He said taxing pension income effectively reduces the purchasing power of retirees.
“Every dollar paid in tax is a dollar less available for essential living expenses, which can place unnecessary strain on fixed retirement incomes.
By removing this tax burden, the reform acts as a cost-of-living cushion, as retirees can keep a greater share of their pension, improving their capacity to meet daily costs and manage higher living expenses, particularly in areas like healthcare, food, medications and utilities.
This, in turn, should ease financial pressure on households, reduce the likelihood of retirees depleting their savings prematurely and lessen dependence on family support systems.
In a broader sense, it strengthens financial independence and stability among the elderly.”
Beyond short-term consumption effects, the reform could strengthen long-term savings behaviour by making formal pension schemes more attractive relative to informal saving channels. Based on Central Bank data, Trinidad and Tobago already has a substantial pension system, including 177 active occupational pension plans and tens of thousands of members.
“When retirement payouts become tax-free, pension plans and annuity products become more attractive compared to money in a regular savings account. Over time, this could lead to more long-term contractual saving via pension plans, which benefits the country by building up larger pools of domestic capital for investment.”
This connects directly to another benefit: the development of local capital markets.
“Pension funds are among the most important long-term institutional investors in our financial system, holding $58.8 billion in assets as of December 2024. They already play a major role in our bond and equity markets, with over $22 billion invested in government bonds and $16 billion in equities.
When more people are encouraged to save through pension schemes, pension funds grow larger and therefore have more money to invest in government bonds. Investing in these bonds provides the State with financing to meet their budgetary commitments, finance infrastructural projects, etc.”
There is also a “confidence effect. When the Government signals that retirement income will not be taxed, it reassures both retirees and working individuals that the rules around long-term saving are stable and supportive.
That matters, because joining a pension scheme requires real trust, as people are locking away their income for decades in the pension plan. By removing tax on pension payouts, the policy sends a clear message that disciplined saving will be rewarded, not penalised.
Over time, this can encourage more people to participate in formal retirement schemes, reduce reliance on informal saving, and support better long-term financial planning across the population.”
Arjoon cautioned that pension reform should not end with tax changes, arguing that broader governance and regulatory strengthening are needed to ensure system resilience and coverage.
“While this reform is certainly important, it should serve as the start of a broader set of future pension reforms, especially since pension funds are a systemically important part of the local financial architecture. For instance, more robust pension regulation and governance pension funds could be explored, as strong oversight ensures that funds are well-managed, risks are controlled, and contributors’ money is protected.”
Coverage gaps should appeal to workers in the private sector who are not in a pension plan.
UWI don hails Positive Economic Outlook in Mid-Year Budget Review
June 16, 2026
Following presentation of the Mid-Year Budget Review, Political Scientist Dr Maukesh Basdeo highlighted encouraging economic projections driven by developments within the energy sector. Supply of 1.7 trillion cubic feet of natural gas to processing facilities in Trinidad and Tobago has important implications, not only for the current fiscal year but also for future fiscal periods, providing optimism for longer-term economic growth.
“Now, that’s a significant increased projection. So, although the budget is treated with regard to the fiscal year, the projection for the 2026-27 fiscal period, and even going further , the 2027-28 fiscal period, these announcements in the budget augur well for the economy.”
Speaking on how a reduction in the fiscal deficit affects ordinary citizens, he highlighted the developments as encouraging.
“We have to look at it in the context of what the international rating agencies have actually projected. Now, this is coming from the government in office for approximately 14 months. So, the economic outlook and these figures presented augur well for the economy.”
With four months left before the end of the 2025/2026 fiscal year, citizens will check revenue figures are maintained for the projected period.
“But a lot of this information presented in the Parliament by the Minister of Finance has to be set against the backdrop of the promises made because a significant portion of the supplementary appropriation will go towards promises to the various trade unions. A significant amount goes towards meeting wage requirements.”
Day-to-day expenses such as utilities, the price of gasoline, transportation costs and the costs of grocery items are some of what citizens will scrutinize in the upcoming fiscal year. He noted that if the Government can keep these costs stable, the economic outlook for the next fiscal year will remain positive.
UNSC election good for economy, investment, trade and international influence
2026, 06/05
Successful election to a non-permanent seat on the United Nations Security Council is hailed as both a diplomatic breakthrough and a potential economic turning point, with Government and Amcham T&T pointing to new opportunities for Trinidad & Tobago, which secured 181 votes from 191 UN members to claim a seat on the powerful global body for the 2027–2028 term.
Minister of Finance Davendranath Tancoo described the result as a “momentous achievement,” which would strengthen the country’s global profile while opening the door to increased foreign direct investment.
Tancoo credited Prime Minister Kamla Persad-Bissessar for spearheading the campaign, which began in September last year and culminated in a decisive and overwhelming victory. Her direct engagement at the UN General Assembly and sustained diplomatic outreach were central to securing the broad support needed to win the seat.
The Finance Minister said the timing of the election was significant, shortly after T&T was removed from the European Union’s list of non-compliant tax jurisdictions.
Together, these developments signal renewed international confidence in the country’s governance and economic direction, reinforcing efforts to reposition the economy for sustainable growth and credibility.
American Chamber of Commerce of T&T echoed that sentiment, agreeing the election was a major diplomatic milestone reflecting the country’s long-standing commitment to international cooperation and responsible global citizenship.
The overwhelming level of support demonstrates the confidence the international community placed in T&T’s leadership.
Amcham T&T CEO Nirad Tewarie praised efforts of government officials and diplomats, the Ministry of Foreign and Caricom Affairs and representatives at the United Nations, for delivering the outcome. The seat provides a critical platform for the country to contribute to global discussions on peace, security and development, at a time when multilateral cooperation is increasingly important.
Beyond diplomacy, the business community is already assessing the potential economic benefits.
Amcham T&T said a stronger international presence can boost investor confidence, deepen partnerships and enhance competitiveness as a destination for trade, investment and innovation.
Tancoo reinforced that view, citing growing international interest in key sectors of energy, agriculture and tourism.
The UNSC appointment aligns with the Government’s broader economic transformation strategy, positioning T&T to attract new capital while restoring its status as a credible and influential player on the global stage.
IMF :Trinidad and Tobago: 2026 Article IV Consultation-Press Release;
Staff Report; and Statement by the Executive Director for Trinidad and Tobago
June 5, 2026
Summary
- Trinidad and Tobago’s economy has been slowly recovering toward pre-pandemic levels with low inflation.
- The financial system appears well-capitalized and profitable with adequate liquidity and low non-performing loans.
- The current account balance remains in surplus, but the external position has weakened, and international reserves, while still at adequate levels, have declined.
- The fiscal position has deteriorated in recent years due to lower energy revenues and increased current spending, and public debt has risen.
- In April 2025, Trinidad and Tobago held general elections, and the opposition United National Congress (UNC) won a parliamentary majority.
Subject:
Economic sectors, Energy sector, Exchange rates, Foreign exchange, Public debt
Subject:
Commodities, Energy prices, Expenditure, Fiscal policy, Fiscal stance, Fiscal sustainability, Oil, Prices
Keywords:
Energy prices, Fiscal stance, Fiscal sustainability, Oil
MTEST, UWI And UTT Sign Strategic MOUs
June 10, 2026 TTT News
In a major step toward strengthening tertiary education, research and innovation ecosystem, The University of the West Indies St. Augustine and The University of Trinidad and Tobago signed a suite of Memoranda of Understanding designed to expand student opportunities, deepen institutional collaboration and accelerate applied research in areas critical to national and regional development.
The agreements create a collaborative framework across key disciplines, including mechanical and manufacturing engineering, mechatronics and innovation, chemical engineering, energy and the environment, biosciences and veterinary medicine.
Together, they position both universities to deliver more integrated academic, research and training opportunities while supporting development of graduates who are better prepared for industry, entrepreneurship, innovation and public service.
Senator Emeritus Professor the Honourable Prakash Persad, Minister of Tertiary Education and Skills Training emphasised the need for both universities to work together for the benefit of the country, citing strategic partnerships between the Imperial College of Tropical Agriculture and the Eastern Caribbean Institute of Agriculture and Forestry; former iterations of UWI and UTT, respectively.
Emeritus Professor Selwyn R. Cudjoe, O.R.T.T., Executive Chairman, UTT, shared this view at the ceremony, stating “both institutions possess significant expertise that can be leveraged for greater national good.”
Under the MOUs, The UWI and UTT will cooperate to increase research, educational and training opportunities for students and graduates through joint academic programming, shared expertise, research collaboration, student projects, internships, exchanges, electives, practicum opportunities, seminars, workshops, conferences and joint grant proposals.
Extolling benefits of the agreement, Pro-Vice Chancellor and Principal of The UWI, Professor Rose-Marie Belle Antoine stated that The UWI’s “relationship with UTT has in fact been longstanding and fruitful, and this occasion marks a deepening of that relationship… It is a partnership we are proud of – one in which the national interest takes precedence over institutional boundaries as we prepare our students, support industry and shape solutions for the country and wider region.”
A central feature of the relationship is its emphasis on applied learning. In mechanical and manufacturing engineering, the partnership will support the design and delivery of new academic programmes, particularly in mechatronics, innovation and related interdisciplinary fields.
Commenting on the relevance of mechatronics, Professor Antoine shared that “it is one of the fastest growing fields shaping modern industry” and that “collaboration in this area allows institutions like ours to pool expertise, strengthen research capacity and better prepare students and policy makers to develop the technologies and solutions on which our country and region will increasingly depend.”
It will also promote shared facilities and laboratories, capstone projects and applied research that connect classroom learning to real-world problem solving, strengthening graduate readiness and employability. The chemical engineering and energy collaboration renews an established relationship between the institutions and will support joint work in energy and the environment, including strategic proposals, mutually beneficial projects, workshops and training.
In veterinary medicine and biosciences, the MOU between The UWI School of Veterinary Medicine and UTT Centre for Biosciences, Agriculture and Food Technologies provides a platform for joint study and training, student internships and exchanges, education abroad, joint supervision and teaching, professional development, public education and collaborative grant activity.
The partnership provides for structured implementation through institutional representatives and committees, with activities to be developed by mutual agreement and aligned with the policies and priorities of both universities. The signing underscores a shared commitment to building a more collaborative, responsive and future-focused tertiary education sector. By aligning academic expertise, research infrastructure and student-centred opportunities, The MTEST, UWI and UTT are strengthening the bridge between higher education, national development and the evolving needs of industry and society.
NGC stake in Dragon gas- cross-border pipeline, Hibiscus platform, Atlantic LNG
2026, 06/18 Editorial
A foreign gas influx will reveal the market – owner, vendor , who gains the upside and what remains for the country. After years of declining production and fears for Atlantic LNG and Point Lisas, Venezuelan gas offers a lifeline.
The Minister of Finance is concerned about revenue from cross-border gas, the heart of the question: how will T&T earn revenue and foreign exchange from processing, liquefaction, industrial use or export of Venezuelan gas.
Venezuela must benefit from development of the gas in its waters. T&T infrastructure, LNG capacity, petrochemical demand, ports, pipelines, expertise and a gas monetisation record are assets of value. The task is to convert that value into a fair, durable and collaborative arrangement attractive to Venezuela while protecting T&T’s interest.
Beyond the immediate, negotiated fields and building strategy and relationships for additional border fields and the future, more gas means more government revenue in a complex energy value chain.
Fiscal flows to the State historically are from upstream production : petroleum profits tax, unemployment levy, royalties, one-time signing bonus, production-sharing contracts and the sale or value of the State share of production. Upstream rent for gas produced in Venezuela belongs first to Venezuela. Potential benefit for T&T, a narrower revenue base, lies further down the chain: tariffs, processing fees, local taxes, dividends where the State has a commercial role, service activity, jobs and supply-chain participation.
Pre-January Dragon deals involved Shell and state middleman NGC – producer, aggregator, purchaser, seller, transporter and distributor of natural gas. The current OFAC licence framework authorised international companies Shell and BP and their subsidiaries.
NGC will host the transport to Point Lisas and processing as a shareholder in
1. The new pipeline connecting Dragon field to Hibiscus Platform, owned by Shell 80% and NGC Exploration & Production 20%.
2. The Hibiscus platform, in a combined state ownership of 19% with the Trinidad and Tobago government
3. Atlantic LNG liquefaction facilities, jointly owned by Shell 45%, BP 45% and NGC 10%.
NGC thus has a direct stake in the Dragon project new pipeline, Hibiscus platform and Atlantic LNG
The cross-border pipeline is being built under the joint 30-year Dragon field exploration and production licence issued by Venezuela, so the ownership structure of the cross-border pipeline directly mirrors the upstream field equity.
Cross-border Pipeline Equity Breakdown
Shell Plc (Operator) holds 80% majority stake and oversees technical design, construction, and subsea operations.
NGC Exploration and Production Limited holds the remaining 20% minority stake.
Key Financing and Structural Details
Shared Cost Model: Joint-licensees, Shell and NGC share the estimated $100 million capital expenditure required to lay the 22-kilometre subsea pipeline.
Risk Management: NGC limits risk exposure as the minority investor. By funding 20% of the project, Trinidad and Tobago has an active role without assuming heavy sunk costs of a majority operator.
Ring-Fenced Investment: NGC formally holds the 20% pipeline and field stake via wholly owned subsidiary, NGC Exploration and Production Limited. This corporate structure protects the parent company from project liabilities and isolates the cross-border investment.
With upside from Dragon – 20% pipeline stake, 19% share in Hibiscus platform and 10% share in downstream Atlantic LNG – NGC secures commercial state participation at every point of the Dragon Gas project.
Venezuela gas, owned by BP and Shell, will go to LNG. T&T gets more value from gas to Point Lisas for petrochemicals, than gas to Point Fortin, for liquefaction. Multinationals extract far more value from LNG than from domestically value-added petrochemicals. It is their (and Venezuela’s) gas. Gaining a true commercial stake, NGC’s role matters as an equity participant and transporter.
ACCC means cooperation is secure. Where there is a will, there is a way.