Venezuela gas still on track for 2028, says NGC chairman

CURRENT forecasts still support a 2028 start-up for first gas from Venezuela, chairman of the National Gas Company of Trinidad and Tobago Dr Joseph Ishmael Khan has said. Khan made the comment as NGC’s subsidiary, T&T NGL Ltd, published its financial statements for the year ended December 31, 2024. “The geopolitical landscape introduced new complexities in early 2025, following the US government’s policy position towards Venezuela.

The board continues to monitor the situation closely. The Office of Foreign Assets Control (OFAC) licences that Government’s gas collaboration between the Government of the Republic of Trinidad and Tobago and Venezuela remain active,” Khan said. Khan said in response to these “geopolitical uncertainties”, TTNGL and its parent NGC are maintaining active dialogue with regulators and international stakeholders, building flexibility into gas supply models, and stress-testing project timelines and financial projections.



“Current forecasts still support a 2028 start-up for first gas from Venezuela, with these volumes expected to contribute to approximately 38% of total gas supply to Phoenix Park Gas Processors Ltd through to 2042,” Khan stated. “Nonetheless, we remain prepared to revise forecasts and strategies as more clarity emerges and new prospects arise from current upstream development in Trinidad and Tobago,” he stated. $114m total comprehensive loss TTNGL Ltd made a total comprehensive loss of $114 million for the year ended December 31, 2024, improving on the $551.

4 million loss it recorded the previous year. “TTNGL recorded a net loss after tax of $119.4 million, a notable improvement from the $547.

7 million loss in 2023. This result includes an unrealised impairment of $184.3 million (2023: $573.

6 million), derived from TTNGL’s 2024 impairment assessment,” Khan said. Khan said the impairment reflects prudent risk management and is based on a conservative outlook incorporating lower long-term gas supply volumes, reduced NGL content in the forecast gas stream, and lower anticipated NGL prices over the medium term. Khan said TTNGL continues to apply a “disciplined and transparent” valuation methodology in the form of the Fair Value Less Costs of Disposal (FVLCD) model.

“Importantly, this model excludes several potential upstream gas projects that, while not yet sanctioned, are actively progressing. This approach ensures that impairment charges remain prudent and reversible, should key assumptions improve in the future—particularly in areas such as gas supply reliability, feedstock quality and asset life extensions, “ Khan stated. PPGPL profit TTNGL’s share of profit from its investment in PPGPL rose to $66.

6 million in 2024 from $28.1 million in 2023. This was an increase of 137%.

“This reflects a solid growth in PPGPL’s performance and supports the company’s broader efforts to stabilise earnings and long-term shareholder value,” Khan stated. According to Khan, PPGPL delivered a profit after tax of US$25.3 million (2023: US$10.

7 million) driven by improved operational metrics. He said the key contributors to this performance included: • an increase in gas volumes to Pt Lisas for processing (1,052 mmscfd in 2024 vs 1,008 mmscfd in 2023) • higher uptime efficiency • 10% improvement in NGL content in the gas stream • continued cost rationalisation • a 10% increase in Mont Belvieu product prices, driven by global demand shifts, weather disruptions, and US logistical constraints. “The North American trading subsidiary achieved a 21% increase in volumes.

While margins were compressed, the business is being deliberately positioned for long-term commercial resilience. Strategic initiatives under way include optimising supply chains, refining pricing structures, and enhancing inventory and credit risk controls to improve returns as trading expands,” Khan stated. Khan said excluding the impact of impairment, earnings per share improved to $0.

42 (2023: $0.17). “Cash by cash equivalents stood at $165.

6 million (2023: $127.2.million) supported by dividends of $39.

4 million from PPGPL (2023: $23.7 million). This liquidity position underpins our ongoing ability to meet obligations and support strategic investments,” Khan stated.

Payment of dividends still restricted Khan stated that TTNGL’s ability to declare and pay dividends still remains restricted. “However, considerable work has been undertaken to identify sustainable solutions. The board has narrowed its options and will communicate its proposed approach in 2025, subject to necessary stakeholder and regulatory approvals.

These efforts form part of a broader focus on capital discipline and prudent financial management,” he said. “PPGPL continues to pursue its strategic objectives with discipline and agility. The focus remains on strengthening core operations expanding commercial reach, and diversifying revenue streams.

These actions are integral to the risk mitigation framework being employed across the NGC Group which prioritises operational reliability, strategic geographic diversification, active market intelligence, and sustainable investment in core infrastructure,” Khan said. Khan said the board remains “firmly aligned” with these priorities and continues to work closely with management to navigate in a dynamic operating environment. “We are committed to preserving financial resilience, improving transparency, and positioning TTNGL for long-term growth,” he said.

PUT IN BOX Speaking during last week’s post-Cabinet news conference, Prime Minister Stuart Young said when he met with United States Secretary of State Marco Rubio in Kingston, Jamaica, he went into “granular detail” on the importance to Trinidad and Tobago and the region of the Dragon gas deal with Venezuela and what it entailed. “Exactly how this transaction would be structured; the work that we have already done, along with Shell, to make it a reality; and the effects that it will have, in particular, on the rest of the region. I was able to set out how it would also affect the rest of the Caricom region because of the important role that we play in supporting some of our Caricom brothers and sister nations.

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That was accepted. “Secretary of State Rubio did indicate that he was pleased to receive this information..

.and he said that US foreign policy is in no way meant to affect or harm Trinidad and Tobago, in particular, with what we are doing for energy security. And there was a recognition that Trinidad and Tobago’s role in energy security is not limited to our domestic situation.

“He explained to me the US policy that they’re applying. I understood the US policy, and we agreed that there is a lot of room in there for Trinidad and Tobago to achieve what is needed domestically—the Dragon gas deal—as well as the role that we play throughout the region that they will give us support on and the achievement of the policy. “I made it very clear that Venezuela is our closest neighbour and we have a relationship with Venezuela that can be beneficial for the region and the Western Hemisphere because there’s a lot of built-up respect,” Young said.

In response to a question on whether T&T was seeking to get an exemption from any sanctions imposed on Venezuela, Young said that was part of the conversation with Rubio. He said Rubio recognised that the OFAC (Office of Foreign Assets Control) licence given to T&T by the US is in place until October. “There is a lot of discretion in there.

..which is invaluable to Trinidad and Tobago,” Young said.

He said this country had built up credibility in Washington over the last few years, which counted for a lot. “The Secretary of State Rubio was very clear that he appreciated the opportunity to hear from us first-hand and from the Prime Minister first hand on that (energy) and the effects it would have, and he kept emphasising, ‘We are not going to harm Trinidad and Tobago’,” Young said. “I did raise the point that our OFAC licence for Dragon is (ending) in October.

Secretary of State Rubio said: ‘Stuart, Prime Minister, that is some time off from now. We are going to continue to work with you,’” Young said. He added: “Nobody is going to give that blanket commitment at this stage.

But I emphasise, he said: ‘I am not going to harm Trinidad and Tobago’ after hearing how important it was for us,” Young said..