Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, announces that it has signed a memorandum of understating (“MOU”) with The National Gas Company of Trinidad and Tobago Ltd. (“NGC”), to explore and develop new projects to enable energy transition in Trinidad and, potentially, in the wider Caribbean and Latin America.

NGC has been in operation for over 45 years and is strategically positioned in the upstream and midstream of the natural gas value-chain in Trinidad and Tobago. Its core business activities involve the aggregation, purchase, compression, transmission, sale and distribution of natural gas to industrial and commercial users. It also has non-operated interests in upstream producing assets, both oil and gas.

This collaborative initiative is part of Trinity’s and NGC’s 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.

As Trinity drives toward becoming an energy company of scale, strong relationships with highly respected businesses like NGC will be fundamental to achieving our long-term goals.

The MOU covers a range of development opportunities including:

• A Micro Liquefied Natural Gas (“micro LNG”) business which encompasses potential synergies along the Gas Value Chain including potential opportunities for Compressed Natural Gas (“CNG”) in Trinidad and Tobago, the broader Caribbean and Latin America region;
• Renewable energy opportunities, inclusive of a wind power generation project, to provide renewable electric power, including some of Trinity’s operations;
• Pursuit of stranded gas assets and associated opportunities in existing Trinity assets; and
• Pursuit of other mutually beneficial business opportunities.

As the world continues its energy transition journey, these value-added initiatives will contribute towards maximising the benefits from Trinidad and Tobago’s natural resources.  Furthermore, this supports Trinidad and Tobago’s ambitions towards lowering GHG emissions in line with best practice and the Paris Accord. 

Bruce Dingwall CBE, Executive Chairman of Trinity, commented: 

“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. 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. We believe that this MOU is an important milestone for the Company, and look forward to working alongside the NGC on these exciting new initiatives.”

Mark Loquan, NGC President, commented:

“This signing is indeed a significant one as it provides the NGC Group, and ultimately the people of Trinidad and Tobago, with an avenue to accelerate energy efficiency and renewable energy within the country. The scope of the MOU goes hand in hand with the Group’s Corporate Sustainability Strategy, which speaks to the role of the Group in the attainment of the country’s Paris Agreement obligations. The NGC Group has made great strides in diversifying its business model to ensure the sustainability of all our entities. The scope of this partnership with Trinity is therefore a strategic fit for the Group. The NGC Group is therefore set to advance the local chapter of the energy agenda.”

ESG Commitments

Environmental Social and Governance (“ESG”) drivers are at the core of the modern industrial society and Trinity is focused on establishing itself at the forefront of the Energy Transition agenda.

Trinity has been working for some time to reduce the environmental impact of its operations, having established its baseline for emissions in 2017. The Company has been embarking on an abatement plan during 2020 to ensure that it becomes a more efficient and cleaner business, and is on course to roll out further operational automation initiatives in 2021. Key onshore and offshore wells are being automated (driving efficiency and reducing energy intensity) and the acceleration of applied analytics, transition technologies and automation across the wider portfolio will further work towards our ESG objectives.

Micro LNG

Deploying micro LNG solutions significantly reduces transportation requirements for natural gas with volume requirements reduced by a multiple of 600 times.

LNG is a clean cheap transition fuel ideal for small, medium and large scale users. It also has immediate and growing use as a bunkering fuel for sea going vessels. Trinity has been reviewing the opportunity to be part of this supply chain for some time and believes it would be a strong, complementary, cash generative addition to our existing operations.

Renewable Energy Powering conventional oil production by using alternative energy sources such as wind power has the potential to not only reduce the carbon footprint of each barrel produced but also to reduce the operating costs of extracting those barrels. Trinity has evaluated and deployed several means to reduce its operating costs since 2016, delivering an operating break-even consistently below US$30/bbl, and it continues to drive this initiative forward, including the powering of its own and ultimately other third party platforms and wells via alternative energy sources.