CSR Story
RECONFIGURING FOR SUSTAINABILITY
NGC
The National Gas Company of Trinidad and Tobago Limited (NGC) plays a pivotal role in Trinidad and Tobago’s gas- based energy sector and is strategically positioned in the midstream of Trinidad and Tobago’s natural gas value chain. Today, NGC leads a diversified group which is evolving into a global business entity, working to develop a structure that supports its international mission to create exceptional value from natural gas and related energy businesses through valued partnerships and arrangements. Part of this evolution or reconfiguration, is recognising that the current business portfolio, must reflect an environmental ethos that is running through the veins of the global oil and gas sector. For NGC, this revolves around energy efficiency (EE) and selected environmental projects while still achieving its strategic business objectives.
What is NGC’s and the group’s contribution towards Energy Efficiency?
In support of the Government of Trinidad and Tobago’s commitment under the Paris Climate Change Agreement, NGC and the group, as agents of the government, are proactively pursuing agendas related to EE. On the business end, natural gas has three main end users – LNG; downstream industries for feedstock or fuel and power generation. With power generation, NGC believes that if energy usage was managed efficiently, this could result in reduced power consumption which could lead to natural gas being redirected for sale to the downstream petrochemical sector in Point Lisas or sold as LNG for profit that would benefit the nation.
NGC’s President Mark Loquan has, on numerous platforms such as the Trinidad and Tobago Energy Conference, Clean Energy Conference and Gas Exporting Countries Forum, advocated the need for energy efficiency and policy to support this. Within NGC, this has led to a shift in focus, moving from just aggregating and selling natural gas to becoming more customer-focused and collaborative with stakeholders throughout the natural gas value chain.
This is not solely an NGC problem, or a gas sector problem, but is of national interest, considering everyone uses electricity. Another change in paradigm is NGC Group’s focus on diversifying from its traditional business to transitioning into sustainable and clean energy ventures. Shifting from conversation to action internally within the Commercial Group, a new division, Manufacturing Industries and Energy Efficiency (MI&EE), was created to drive continuous improvement in energy efficiency within our existing customer base. The Division’s mandate includes:
- Strengthening national contribution by working collaboratively with stakeholders to shape the development of national policies and laws related to EE, while supporting the implementation of projects that will minimise or reduce energy usage, and raise public awareness benefits of EE and energy conservation (EC).
- Securing current business by influencing behavioural changes within NGC customers through promoting and monitoring the effectiveness of EE and EC programmes targeting energy saving opportunities.
- Shaping the organisational culture as it relates to sustainable energy competencies, which will support renewable energy and energy efficiency activities.
NGC subsidiary, National Energy, has started the Super Energy Service Company (ESCO) project. A pilot study is underway and will assess the feasibility of implementing a full-scale ESCO Project. It is being conducted among NGC’s Light Industrial and Commercial customers (LICs), as well as other organisations. The study entails stakeholder meetings and audits across the public, commercial, small industrial, large industrial and power generation sectors. The aggregated data collected will be used to identify:
- Typical energy savings
- Energy efficiency opportunities across different sectors
- The local capacity for implementation of a Super ESCO model
Under this model, National Energy will provide financing to ESCOs for the implementation of energy efficiency audits and installation of equipment and machinery at companies throughout the country. Companies who benefit from the initiative would then be able to pay for the energy efficiency installations through the savings generated.
NGC has embarked on initiatives to promote and educate citizens on EE and EC. At the partnership level, NGC has collaborated with the IAMovement to produce the REThinking Energy Videos series. The goal of this campaign was to take a closer look at climate change as it pertains to local natural gas scarcity, and road-map opportunities which can help to lift Trinidad and Tobago socially, economically and environmentally. The first video focussed on ‘The Opportunity Cost’ and explained the potential revenue lost by NGC and the country when gas supply is prioritised for power generation over the more lucrative petrochemical sector. The second video, ‘The Electricity Subsidy’, demonstrated how the subsidy works and spoke to practical methods for energy conservation that can be used not only by the average citizen but also corporations. The final video, – ‘Solutions for T&T’ – looks at the renewable energy and energy efficiency solutions available to Trinidad and Tobago as guided by the Sustainable Energy Roadmap 2021-2030.
A greening initiative
NGC’s signature Reforestation Programme is another pursuit which seeks to balance business and sustainability. Borne out of NGC’s no net loss policy for its pipeline and infrastructural projects, 348 hectares have been replanted thus far with 100,000 trees of mixed species. While no net loss was the main objective, another key aim of the project was also to create a carbon sink, especially in the southern forest reserve where many of the projects took place.
In 2018, the company took the programme further by contracting The University of the West Indies to ascertain the true carbon sequestration potential of its programme. The study’s aim was trifold:
- Determine tons of carbon sequestered at NGC reforestation sites between 2005-2018
- Project the tons of carbon that could be sequestered from 2019 – 2030
- Quantify the market value of carbon sequestered
At 2018, results showed that approximately 2,243 tons of carbon were removed from the atmosphere with a market value of TT1,542,191.00. By 2030, it is estimated that 5,228 tons will be sequestered. It is extrapolated, based on the approximate value of the European Union Allowance spot price, that the value would be about TT$ 3,594,502.00.
NGC is excited about the results of this project as it has the potential to alleviate damages associated with carbon emissions.
Conclusion
As NGC seeks to secure its business both locally and internationally, it is cognisant of the importance of fulfilling its national contribution not just to the coffers of the country, but to the wellbeing of its citizens by making bold advances across its business, both operationally and through its CSR projects. Manager Corporate Communications, Lisa Burkett notes: “The buzz in our industry is that this could be almost a third industrial revolution – the green revolution which incorporates energy efficiency, renewable energy, energy conservation and the like. NGC is up to the challenge -managing this duality in the energy industry and the environment.”
