BG Group plc, and its partner Chevron, announced that they have entered into Heads of Agreement (HoA) with The National Gas Company of Trinidad and Tobago Limited (NGC) for the supply of 220 million standard cubic feet of natural gas per day (mmscf/d) for a term of up to 15 years with initial deliveries beginning on 1 January 2009.
The gas will be delivered to NGC for use in the Trinidad and Tobago domestic natural gas market. A fully termed gas sales agreement is expected to be finalised in 2007.
Martin Houston, BG Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said:"The proposed agreement underpins the commercialization of 1.2 trillion cubic feet of currently undeveloped gas in the East Coast Marine Area. This is an excellent project and BG Group is delighted to have reached this agreement with NGC. We are a long-term partner in the country and a key contributor to the domestic gas supply market. We remain committed to our extensive exploration and production activity in the East and North Coast Marine Areas as well as the onshore Central Block and will continue to work closely with the Government to promote further expansion and recovery of Trinidad & Tobago’s natural gas resources."