LONDON (ICIS)--The National Gas Company of Trinidad and Tobago (NGC) on Tuesday signed a new gas sales deal with Trinidad Nitrogen Company (TRINGEN) that secures the future of two key ammonia plants.
"With this agreement, these two plants will continue to operate and keep Trinidad secured as a key exporter of ammonia," the two companies said in a joint statement.
TRINGEN, which is 51% owned by National Enterprises (NEL) and 49% by Yara Caribbean , operates a pair of 500,000 tonne/year ammonia units at the large Point Lisas Industrial Estate.
In total, Trinidad has 10 ammonia plants, which between them produced nearly 5.1m tonnes of the nitrogen fertilizer in 2020, of which more than 3.9m tonnes was shipped overseas, official data shows.
The two TRINGEN units produced a combined 930,000 tonnes last year, according to statistics compiled by the Ministry of Energy and Energy Industries (MEEI), with almost all that volume sent abroad.
"TRINGEN has been one of the more successful joint ventures for Trinidad and Tobago, paying dividends to its shareholders over the past 25 years, and contributing significantly to the local economy," the statement added.
"Work has also begun on the gas value chain analysis led by the MEEI, with a view to securing the future of the industry for the next decade, with active engagement planned for all other value chain players.
"The review is key to ensuring that Trinidad and Tobago navigates along a path of sustainability through the difficult economic and industry conditions now being faced."
Ammonia manufactured on the Caribbean island is shipped to destinations in North and South America under contract, as well as to long-term customers in Morocco, South Africa and Belgium.
As a joint venture partner in TRINGEN, Norwegian fertilizer major Yara loads several vessels at Point Lisas each month, for shipment to clients in the Americas, as well as its own network of fertilizer plants across Europe.
Other suppliers who frequently load at the port comprise Nutrien, Koch, and Trammo.
Yara permanently shut down its 270,000 tonne/year wholly-owned unit in Trinidad at the end of 2019 due to its age, reliability and uncompetitive manufacturing costs.
Financial details and the length of the new gas deal were not disclosed.