NGC fires up manufacturing sector

This, will in turn generate more sustainable jobs, enabling wealth creation for the country, he said following the signing of an agreement last week between the NGC and TTMA designed to assist the country’s Light Industrial Commercial (LIC) sector.

The LIC is broadly classified as one having gas demands of less than 2.0 million standard cubic feet per day, known as MMscf/d (Million Metric standard cubic feeet per day).

"The macro-economic benefits will include increased disposable income and a higher standard of living for the population leading to decreased crime levels," he said.

"This will increase the stability of our economy, boosting investor confidence, and thus increasing foreign direct investment in Trinidad and Tobago. with the result being stable exchange rates and an overall positive impact on balance of payments."

The agreement is being seen as the dawn of a new era for the manufacturing sector in Trinidad and Tobago. In essence it will facilitate the NGC to supply natural gas at a reduced price to some 108 manufacturing companies and it will be known as an Industry Fund.

The agreement was signed between Frank Look Kin, president of the NGC and Quesnel at NGC’s headquarters at Point Lisas.

To date NGC has on its register over 140 LIC’s that have been connected, but the number of active consumers total 108.

In 2004, the LIC sector consumed an average of 1.1 per cent of NGC’s total daily output and it is predicted that it will grow and that natural gas will increasingly be the fuel of choice for small industrial and commercial business, according to Look Kin.

He said, "Though the LICs represent a relatively small portion of NGC’s total sales portfolio, it is recognised as a critical niche, which generates relatively high levels of employment and national growth."

He added that NGC was expanding its distribution network with committed expenditure of over $30 million TT for the next three years with supply lines planned for Diamond Vale Industrial Estate, Gulf City, San Fernando, Otaheite Industrial Park and Waller Field Estate Park.

Look Kin explained that the price of natural gas sold to the LIC sector would be reduced by 20 cents per unit with NGC contributing the equivalentof US$0.20 per unit of gas consumed by the sector into an Industry Fund for a period of four years, retroactive to December 1, 2004, to 2008.

The Industry Energy Fund would be managed by the NGC and administered jointly by a committee with representation from NGC, TTMA and the Ministry of Energy and Energy Industries.

At the signing of the agreement, Quesnel said that the Light Industrial Sector will now witness a "major landmark in the development of a new era of manufacturing in Trinidad and Tobago."

Quesnel explained that more than two years ago the TTMA through the Minister of Trade and Industry, Kenneth Valley, initiated discussions with the Government for a more competitive price of natural gas for the non-energy manufacturing sector. "What you see happening here today in the form of an agreement is the result of the concerted and co-operative efforts of many stakeholders."

He added, "The manufacturing sector will now be in a position to harness the comparative advantage of this country’s natural gas resources which will benefit everyone in the productive sector."

Quesnel said there was often talk about the need to leverage our natural resources so that everyone in this country benefits and the need to develop sectors outside of energy for long-term sustainability and competitiveness.

This fund, he said, coupled with the reduction in natural gas prices for manufacturers, puts us on the path to achieving these objectives, noting that the agreement "is a fantastic example of collaboration between the public and private sectors to enhance the business and investment environment."

He hoped it will have a tremendous impact on the country, especially in the long run.