We were not reckless, Trinidad gas company chairman on TT$400M failed projects
(Trinidad Guardian) In the face of revelations of hundreds of millions of dollars in losses on failed projects, the Chairman of the National Gas Company (NGC) Conrad Enill has denied that the company was reckless in its investment in Atlantic LNG Train 1 and its TT$200 million investment in the Beachfield project which it later realised was not necessary.
In a full page advertisement in yesterday’s Sunday Guardian, Enill insisted that even though the company lost close to a half a billion dollars on two failed projects in the last three years it was done after careful analysis.
“Each of those decisions was approached with the same rigour, with the same analysis of risk and return, and in compliance with established policies and procedures.”
Enill said over the years, the boards, presidents and leadership teams at NGC have been presented with opportunities to create value for Trinidad and Tobago and made informed decisions based on available data and projections in a volatile and uncertain environment, always with a strategic lens on future impact.
Some of these investments the NGC chairman asserted would have had to be made, did not necessarily produce expected outcomes due to changing circumstances and this is the nature of risk, which any entrepreneur or profit-driven company will appreciate.
He insisted that calculated risks are necessary for growth, and every success that NGC has achieved has involved a measure of risk.
“To suggest that decisions that did not bear out intended results were reckless decisions is to deliberately ignore the uncertainty that comes with making any investment that extends into the future, particularly in our commodity-linked business governed by rapidly changing external markets.”
Enill noted that over the past few weeks, the Trinidad and Tobago media have reported on “mismanagement” of NGC but said while the NGC supports public education and information it was concerned about the focus on the failed projects.
“It is unfortunate that the focus should be on specific outcomes that did not deliver expected returns, rather than highlighting the positive investments that have positioned NGC for growth and success in an evolving energy landscape. These include stability of the sector at a time of significant decline, reduction in liabilities and exposure in the future, getting value across the entire energy value chain, and preparing for a green future.”
The NGC Chairman said while the company supports the role the media plays and respects its importance in reporting on issues of national interest, it holds an often-unmet expectation that in fulfilling that role, the media would commit to balanced reporting.
“Articles which present partial, uncontextualised details represented as a complete analysis, can be misleading and destructive,” the statement read.
Business Guardian and Sunday Business Guardian broke the stories that showed the NGC investing and potentially losing more than a quarter billion dollars in a failed attempt to restart the Atlantic LNG Train 1 plant, relying on natural gas that was already committed to the petrochemical sector and having no real prospect of getting the gas in the shortterm that is necessary for the plant to restart.