Corporate Overview The NGC Group of Companies
The NGC Group of Companies Group Mission To create exceptional value from natural gas and related energy businesses through our people and strategic partnerships. Group Vision To be a recognized global leader in the development of sustainable energyrelated businesses Core Values Integrity Employee Engagement Excellence Safety & Environmental Preservation Transparency Customer Focus Corporate Social Responsibility
Strategic Pillars: NGC Group Develop Organization To match the new level of dynamism required of NGC to manoeuver in a more complex, internationally competitive arena o Refresh Role Mandate o Formalize NGC Grp Structure to leverage strengths Secure Current Business To safeguard current business returns in challenging supply and demand environment o Secure gas supply o Contract Optimization o Operational Excellence Grow Locally & Internationally To diversify by expanding into adjacent part of the energy value chain locally, and investing to capture value from global discontinuities o Geographic Diversification o Increase Commodity Trading Strengthen National Contribution To deepen our contribution to the country through both financial and non-financial activities o FDI/Econ Stimulation o Alternative Energy o Lower Carbon Footprint o CSR
The National Gas Company of Trinidad and Tobago Limited (NGC) Primary Business Activities Natural gas purchase from natural gas suppliers Natural gas aggregation Natural gas sales to large industrial customers and light industrial customers (LICs) Incorporated by GORTT in August 1975 Start-up capital TT$80,000 Asset base TT$46.2 B 100% state-owned Enabled development of the natural gas sector by providing market for upstream and downstream industries Provided a market-related gas pricing model for downstream petrochemical customers Natural gas transportation and distribution Gas transportation services to limited customers Ownership, operation and maintenance of 4.4 Bcf/d installed capacity network, Approximately 608 miles (1,000 km) of pieplines) on land and offshore Natural Gas Liquids (NGLs) production and marketing Joint venture oil and gas production and marketing Liquefied Natural Gas (LNG) production, marketing and shipping
Corporate Strengths Strong asset base of approximately US$6 billion, including key pipeline transmission and distribution infrastructure A diversified Group of Companies one of the largest business entities in the Caribbean when measured by assets International Investment grade credit rating with the financial flexibility to pursue global growth opportunities High pipeline reliability and availability record through the effective use of engineering design, construction, maintenance and surveillance activities Knowledgeable and experienced staff in natural gas purchase and sale, transportation and distribution, contract negotiation, compression services Long term gas purchase and gas sales contracts with major multinationals Strong Corporate Social Responsibility programme
T i idad a d To ago s Natu al Gas Value Chai NGC S SUPPLY COMMITMENTS 10 Ammonia Plants 1 Urea Plant 7 Methanol Plants 1 Ammonia Urea Melamine (AUM) facility 1 Cement Manufacturing Customer Over 100 Light Industrial Customers 5 Power Generation Sites CNG
T i idad a d To ago s Pipeli e Netwo k
T&T Natural Gas Consumption by Sector 2011-2016 1,800 1,600 Mmscf\d 1,400 1,200 1,000 800 600 400 200 Small Consumers Cement Mfg. Gas Processing Refinery Iron & Steel Mfg. Methanol Mfg. Ammonia Deriv. Ammonia Mfg. Power Generation 0 2011 2012 2013 2014 2015 2016
The NGC Group of Companies NGC is involved in activities throughout the energy value chain, through subsidiaries and investments. Its major subsidiaries are: National Energy Corporation of Trinidad and Tobago Limited (National Energy) conceptualizes, promotes, develops energy-based projects and manages industrial sites, port and marine infrastructure Phoenix Park Gas Processors Limited (PPGPL) engaged in natural gas processing and the aggregation, fractionation and marketing of Natural Gas Liquids (NGLs) propane, butane and natural gasoline NGC CNG Company Limited (NGC CNG) promotes and implements nationally. Compressed Natural Gas (CNG) as a cleaner, cheaper fuel for the ou t s transportation sector Trinidad and Tobago NGL Limited (TTNGL) incorporated to hold 39% of the shares in PPGPL; listed on the Trinidad and Tobago Stock Exchange following ou t s first ever energy IPO
17% 10% 18% National Enterprises Ltd. (NEL) Eastern Caribbean Gas Pipeline Co. Ltd. Operated Company Fully Owned Partially Owned National Helicopter Services Ltd. Other 100% NGC Petrochemicals 20% Caribbean Gas Chemical Ltd 100% NGC Group of Companies: Legal Structure The Government of the Republic of Trinidad and Tobago The National Gas Company of Trinidad and Tobago Limited 100% 100% 63% 15% 4% 20% 100% 100% 100% 51% 80% 100% 83% 100% Atlantic LNG 4 Unlimited (Train4) Atlantic LNG Co. of T&T Ltd. (Train 1) Block 3 (a) (T&T) Block 2 (c) (T&T) Phoenix Park Gas processors Ltd. NGC Pipe-line Co. Ltd. T&T LNG Co. Ltd. TSP Asset South-East Coast Consortium T&T Marine Petroleum Co. Ltd. NGC E&P Investments Ltd. NGC E&P investments (Barbados) Ltd. NGC E&P (Barbados) Ltd. NEC of T&T. LABIDCO. NGC CNG Co. Ltd. 20% NGC E&P Netherlands cooperatief U.A. NGC TT LNG Ltd. T&T NGL Ltd. Downstream Petrochemicals Research & Development Ltd NGC NGL Co. Ltd. 99.99% 0.01% 37.84% 11.11% 10% 100% 100% 39% 51% Pipeline LNG Upstream Assets Processing Ports & Infrastructure CNG
Subsidiary Profiles
National Energy - Current Mandate The conceptualization, promotion, development and facilitation of new energy-based and downstream industries in Trinidad and Tobago Identifying and developing new industrial estates Identifying and developing new industrial deep water ports to facilitate these estates Own and operate marine and other infrastructural assets to facilitate all gas-based petrochemical and metal plants Development and Management of La Brea and Union Industrial Estates Towage and Harbour operations Sustainable management of the environment
Operating Assets Six (6) petrochemical piers Iron & Steel Dock Harbour, Channel & Turning Basin Ten (10) vessels Eight (8) Tugs One (1) Passenger Launch One (1) Fast Crew Supply Vessel
Facilities Managed Port of Galeota Union Industrial Estate Port of Brighton, La Brea
PPGPL at a glance HISTORY Formed in 1989, operational since 1991 OWNERSHIP - NGC NGL Company Limited (51%) - Trinidad and Tobago NGL Limited (39%) - Pan West Engineers LLC, through a consortium comprising The National Insurance Board of Trinidad and Tobago (NIBTT), National Enterprises Limited (NEL), and The Trinidad and Tobago Unit Trust Corporation (UTC) (10%) CORE BUSINESS Natural gas processing, NGL aggregation, fractionation and marketing CORE PURPOSE - Forging development through energy - Staying true to our core values - Being a leader in the energy sector - Creating business opportunities for sustainable growth and development for the benefit of our stakeholders
Overview of Operations Facilities Three cryogenic natural gas processing plants 1.95 Bcf/d Operations P o essi g wet gas supplied NGC a d Petrotrin from offshore fields Two fractionation plants - 70,000 barrels / day Residual clean dry gas, returned to NGC and Petrotrin Six product storage tanks - 1,250,000 barrels Fractionating NGLs from processed gas and NGLs supplied by ALNG into propane, butane and natural gasoline Two product loading docks - 54,000 cbm Fractionating butane into iso-butane and normal butane A atu al gas li uids NGLs pipeli e etwee Atla ti LNG ALNG at Poi t Fo ti, T i idad to the Point Lisas processing facilities Marketing and sale of propane, butane and natural gasoline Iso-butane is supplied to Petrotrin via pipeline Propane, butane and natural gasoline is exported
Overview of Operations
Operating Performance PPGPL has operated at an average operational uptime in excess of 98% since its inception The Company has an exceptional safety record: o o o U Gas P o esso s Asso iatio U GPA safety award for 16 years 1 lost workday case in the past 22 years TT OSH National Safety Awards Finalist in 2006 & 2007 PPGPL s Facility High quality outputs: o o o The propane produced meets the highest standard (HD5) set by the US GPA The butane contains no olefins, a contaminant commonly found in refinery-grade butane Only one valid demurrage claim incurred over 2,700 cargoes
Key Marketing Strengths Consistent supplier to key Central American markets Consistently achieved average NGL freight on board product prices at average premium above Mont Belvieu prices for term contracts International reputation for rapid vessel turnaround High customer satisfaction noted via annual customer survey: 90% in 2015 95% in 2014 94% in 2013
NGC CNG Overview NGC is mandated by the Government of Trinidad and Tobago to accelerate and expand the use of Compressed Natural Gas (CNG) as a major alternative transportation fuel in the country. The switch to CNG is expected to take place in 2 phases. The first phase was projected to cost TT$500 million (now reduced) and involves the construction of 22+ new or revamped CNG-only fuel stations and conversion of 17,500+ vehicles. The second phase, if sanctioned, is projected to cost TT$1.57 billion for the construction of more stations and increasing demand. Primary motivations are reduction of subsidy and lowered fuel prices to the population.
CNG Campaign Progress The vehicle market in Trinidad & Tobago for OEM CNG vehicles is evolving quickly with several options in various classes: Bi-fuel (gas and CNG) Honda City CNG passenger vehicles available for purchase First 100% CNG freightliner truck launched in 2016 - this is the first time a CNG freightliner truck has been exported from North America 2 CNG a i-ta is o the oad, with others on the way 13 CNG filling stations in operation, with 13 new supply points planned for opening in 2017 5 mobile refuelling units to be commissioned 3000+ CNG vehicles estimated to be in use
CNG Campaign Progress Target CNG Sales Volumes with NGV targets (Diminished marketing expenses after 2018) 100,000 90,000 85,348 89,615 94,096 80,000 70,000 60,000 50,000 40,000 30,000 27,407 20,000 10,000-3,344 2016 2017 2018 2019 2020