BREAKING NEWS: NGC to own 90 per cent of Phoenix Gas
The National Gas Company (NGC) has purchased US-based energy giant Conoco-Phillips’ 39 per cent share in Phoenix Park Gas Processors Ltd (PPGPL) for US$600 million, senior energy sources confirmed today to the Express.
Both Conoco and the NGC are expected to release an official statement later today on the agreement.
NGC already has a 51 per cent interest PPGPL and this deal will give the state-owned natural gas distributor a 90 per cent stake.
The remaining ten per cent is owned by the Houston, Texas-based Pan West Engineers & Constructors Inc.
In 2003, Conoco first announced its plans to divest shares in PPGPL, as part of a company-wide divestment of its midstream operations. The NGC had then said it would be interested in the purchase if the price was right.
In 2004, Conoco changed its mind and withdrew its offer to sell.
For the year ended December 31, 2012, NGC recorded a $3.930 billion after-tax profit, more than $670 million lower than the $4.604 billion profit it made in 2011.
The company did, however, end the year with $12.34 billion in cash and cash equivalents.
PPGPL was recently in the news after a malfunctioning pressure valve in the NGC natural gas pipeline running into PPGPL early Good Friday morning caused a disruption in the gas supply to power generation companies, leading to a nationwide blackout lasting a few hours in South Trinidad and to as many as 12 hours in some parts of West Trinidad.