NGC Signs Additional NatGas Supply Deals

Trinidad & Tobago's National Gas Company (NGC) has concluded negotiations with Anglo-Australian resource group BHP Billiton (NYSE: BHP) and US oil company EOG Resources (NYSE: EOG) for the supply of 330Mf3/d (9.35Mm3/d) of natural gas.

BHP will supply an average of 220Mf3/d from offshore block 2(c), which the resource group operates in a consortium with Canada's Talisman Energy (NYSE: TLM) and France's Total (NYSE: TOT), NGC said in a statement.

EOG will provide 110Mf3/d from the Toucan field in its offshore block 4(a), the statement SAID.

Last month, NGC signed a heads of agreement with UK gas company BG (NYSE: BRG) and US oil major Chevron (NYSE: CVX) for the supply of 220Mf3/d of natural gas.

These agreements will soon be converted to long-term supply contracts and "are a major step forward in meeting the gas supply requirements for the next wave of petrochemicals, metals and other industrial plants scheduled to come onstream in the timeframe 2009-10," the statement said.

NGC's gas supply portfolio will exceed 2.1Bf3 by 2010, the statement said.

The state gas company's largest customer segment is petrochemicals, which accounts for 70.9% of gas sales, while power generation represents 16.9%, according to NGC's website.

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