Trinity signs deal with Trinidad National Gas Company

Trinidad and Tobago-focused exploration and production company Trinity has signed a memorandum of understating with the National Gas Company of Trinidad and Tobago (NGC), to explore and develop new projects to enable energy transition in Trinidad and, potentially, in the wider Caribbean and Latin America.

The AIM-traded firm said NGC had been in operation for more than 45 years, and was “strategically positioned” in the upstream and midstream of the natural gas value-chain in Trinidad and Tobago.

Its core business activities involved the aggregation, purchase, compression, transmission, sale and distribution of natural gas to industrial and commercial users.

The company also had non-operated interests in upstream producing assets, both oil and gas.

Trinity said the collaborative initiative was part of the two firms’ wider growth strategies, aiming to derive further value from existing licences, to establish a broader portfolio of energy assets via acquisition and partnerships, and to challenge and further reduce carbon output.

The memorandum covered a range of development opportunities, including a micro liquefied natural gas business which would encompass potential synergies along the gas value chain, including potential opportunities for compressed natural gas in Trinidad and Tobago, the broader Caribbean, and the Latin America region.

They also included renewable energy opportunities, inclusive of a wind power generation project, to provide renewable electric power, including some of Trinity's operations, as well as the pursuit of stranded gas assets and associated opportunities in existing Trinity assets, in pursuit of other mutually-beneficial business opportunities.

“Our traditional core onshore and offshore production assets provide a strong foundation for growth, but this partnership with the NGC potentially introduces new ways of operating, powering and monetising those assets which are truly exciting,” said executive chairman Bruce Dingwall.

“This partnership is expected to be a great 'enabler' to Trinity becoming a new type of energy business which is at the forefront of the Energy Transition agenda.

“Automation and transition technologies are bringing a new dimension to our existing operations, and we will continue to advance opportunities to broaden our portfolio and create further value as we further scale the business.”

At 1250 GMT, shares in Trinity Exploration and Production were down 1.1% at 9p.