NGC on shutdown: ‘Nutrien held TT to ransom’

NGC chairman Gerald Ramdeen. - File photo

STATE company the National Gas Company (NGC) says Canadian agro-fertiliser producer Nutrien decided to hold this country to ransom by ignoring every opportunity given by government to continue its operations in this country.

The NGC said so in a release on January 2 amid criticisms from former energy minister Stuart Young over the shutdown of Nutrien’s operations in Trinidad and Tobago.

The release said said Nutrien’s decision to shut down its TT operations was based “solely on pursuing its own profit interests and those of its shareholders, without any regard to the interests of this country or its people.”

It added that the hundreds of jobs that will be lost is the result of Nutrien’s actions and not the Government or NGC.

“Nutrien was given every opportunity to continue its operations in this country, but instead chose to hold this country to ransom in an attempt to continue to enjoy legacy pier user rates and extract a long-term gas contract from NGC,” the statement said.

In October, the global supplier of fertilisers shut down operations after a disagreement with NGC over port fees and what it said was the lack of reliable and economic natural gas supply.

Nutrien produced about 85,000 tonnes of ammonia and 55,000 tonnes of urea per month at its Trinidad facility.

In a message on December 29, Young said Nutrien spent US$130 million in 2024 on its TT assets (plants).

Young also claimed that that prior to the UNC getting into government, the gas sector was being carefully managed, relationships were mutually respectful and TT’s interests were being looked after.

He criticised the Persad-Bissessar-led administration, particularly her two ministers of energy as well as the NGC chairman, accusing them of destroying confidence in TT’s energy sector.

Young said the shutdown would contribute to the loss of thousands of jobs, the loss of forex, a downgrade, and the continued deterioration and destruction of TT’s “delicate energy sector.”

In response, NGC described it as “quite rich” that Young would raise the issue of the non-renewal of downstream gas contracts.

“It was under his tenure that pier user contracts were allowed to expire without renewal since 2018. This permitted downstream petrochemical companies (such as Nutrien) to enjoy legacy rates from 2018 to present,” the NGC statement said.

“Even though these legacy contracts included clauses that provided for the escalation of these rates, such clauses were never triggered by the persons appointed by the former administration to manage the assets that belong to the people of this country.”

The statement continued that this “simple omission” resulted in a loss that exceeded $500 million.

It said National Energy was instructed to allow Nutrien to continue to enjoy these same legacy rates until the end of 2025.

“Nutrien instead chose to enforce its threat to shut down operations in the hope that public pressure would force the government to give in to its demands,” the NGC said.

It added that NGC and the Energy Ministry held five meetings with Nutrien seeking to resolve issues surrounding the pier user charges.

The statement claimed that in the first meeting, Nutrien threatened to launch a public relations campaign if anyone tried to raise fees or demand retroactive payments for using the Savonetta piers.

NGC further alleged that the campaign would have made it seem like Nutrien was forced to shut down its operations.

“In one instance, after agreeing to meet with Nutrien in good faith, National Energy was served with an application for an injunction whilst on the way to the meeting,” it said.

“It will be irresponsible and reckless for NGC to commit to long-term gas supply contracts to the downstream, without ensuring that the upstream gas supply is finalised, as this can expose NGC to liabilities and losses in relation to its downstream customers.”

The statement said that since assuming office, the new board has guided NGC’s management to align upstream gas supply with its commitment to downstream customers.

NGC went on to say, “This type of prudent and responsible management of the country’s assets may be foreign to the former minister (Young). Nutrien was offered interim arrangements, pending the conclusion of these negotiations, to enable it to continue its operations.”

“The same interim terms were offered to all downstream petrochemical companies, but Nutrien was the only downstream customer who refused to accept the terms.”

The statement continued that under the former minister and the former NGC board, US$14.35 million in take or pay liabilities, owed to NGC by Nutrien, was waived in August 2024.

“The former minister’s concern about the loss of foreign exchange as a result of the closure of Nutrien is quite convenient,” the statement said.

“Since October 2023, under the previous administration, certain downstream companies were allowed to manipulate the payment terms of their existing gas supply contracts to enable them to enjoy a de facto overdraft facility, which at times reached US$160 million.”

The statement added that, contrary to the naysayers about the loss of forex, most petrochemical producers from the Point Lisas Estate do not remit US revenues to TT.

Instead, the statement added, such revenues are diverted to US dollar foreign accounts in financial capitals such as New York, London, Zurich, and Brussels.

“Several of these companies fund their local expenses using TT dollar borrowings from local banks and financial institutions in competition with local businesses and individuals.”

Despite Nutrien’s shutdown, NGC has been able to reallocate this tranche of gas to other downstream customers and fulfil its Atlantic LNG allocation. This resulted in what NGC said were significant financial benefits to the people of TT.