Trinidad and Tobago NGL Limited (TTNGL) has published its financial results for the period ending 30 June 2023, which reflects operational and market challenges impacting its underlying asset, Phoenix Park Gas Processors Limited (PPGPL).
The financial performance and revenues were adversely impacted by external market factors. Natural gas liquids (NGL) prices continued their declining trend in 2023 and were 37.7% lower than prices recognised in the comparable period of 2022. A warmer US winter weakened demand for NGLs, and a combination of higher US NGL production and falling exports kept US NGL inventories above the 5-year average. Both factors served to dampen NGL prices, which accounted for over 60% of PPGPL’s year-to-date sales revenue variance at June 2023.
In the domestic market, NGL sales volumes for the period up to June 2023 were 39.7% below 2022, because of lower NGL production. This was due to a planned 20-day facility-wide turnaround for maintenance activities, as well as ongoing domestic gas supply challenges, which resulted in 25% lower production when compared to Q2 from 2022. Higher feedstock costs also significantly impacted the performance of PPGPL when compared to Q2 2022.