Long-anticipated consummation of the Sale and Purchase Agreement makes NiQuan Energy the proud owner of the Gas to Liquids plant at Pointe a Pierre.
Following an extensive due diligence process lasting several years and requiring the fulfilment of a range of demanding conditions precedent, NiQuan Energy Trinidad Limited (“NiQuan Energy”) has consummated and concluded the Sale and Purchase Agreement (“SPA”) with World GTL Trinidad Limited (In Receivership) and the agent Receiver, Mr Brian Hackett of PricewaterhouseCoopers, under which it has acquired the plant, property and equipment in return for a cash payment of US$10 million plus US$25 million in non-convertible preference shares to the debenture holder, PETROTRIN.
The conclusion of the SPA now opens the way for the unfinished plant to be completed and made operational. Work on this began as soon as the SPA was consummated and is expected to take between 18-24 months. In addition to the payment to PETROTRIN, the plant will require the investment of over US$100 million to complete. This investment capital will be provided entirely by NiQuan Energy with no additional funding from PETROTRIN or the Government of Trinidad and Tobago.
Ainsley Gill, CEO of NiQuan Energy said:
“This is a major landmark in the development of NiQuan Energy and it represents investment, jobs and a cleaner energy future for the people of Trinidad and Tobago. NiQuan Energy will pay to complete the plant and turn it into a going concern, not the taxpayers of Trinidad and Tobago.”
When completed, the plant will have an initial capacity of 2,000 barrels of GTL products per day (80:20 GTL diesel: GTL fuel) and this will be increased to 2,400 by subsequent development.
Gas for the project will be provided by the new state company, Trinidad and Tobago Upstream Downstream Energy Operations Company Limited, and the offtaker for the products will be PETROTRIN.