The National Gas Company of Trinidad and Tobago Limited (NGC) has confirmed a breakdown in negotiations with Methanex over a new gas supply agreement, citing disagreements over pricing as the primary cause. Despite being prepared to maintain supply under current contracted volumes and even considering adjustments, NGC stated that talks hit a deadlock when Methanex insisted that a renewed agreement would only be viable at its proposed price level.
Following the impasse, Methanex made the commercial decision to halt operations at its Titan methanol plant indefinitely. This move, Methanex says, is part of its strategy to safeguard long-term shareholder value in a challenging global environment. NGC responded to this development by echoing the sentiment and emphasizing its mandate to protect value on behalf of Trinidad and Tobago’s citizens, particularly with regard to the monetization of national gas resources.
Despite the current stalemate, NGC has expressed its openness to continued dialogue with Methanex. The gas company underscored that any future agreement with Methanex would need to reflect a commercially sustainable structure that balances the interests of both parties.
As the country’s energy sector continues to evolve, NGC remains steadfast in its commitment to collaborate with industrial customers. This is aimed at encouraging investment, strengthening the downstream energy industry, and maximizing returns from the country’s natural gas reserves. In a final note, NGC stated that it continues to welcome engagement with Methanex, signaling that while the Titan plant remains idle, discussions have not necessarily reached a full stop.
